Declining Profit MarginsEroding gross, EBIT and net margins point to rising costs or pricing pressure that reduce operating leverage. Over several quarters this lowers cash earned per revenue dollar, forcing either efficiency investments or higher pricing that could slow project win rates and margin recovery.
Negative Operating & Free Cash FlowSustained negative operating and free cash flows create liquidity pressure despite revenue growth. This constrains internal funding for capex and working capital in project cycles, raising dependence on external financing and potentially delaying project execution or increasing financing costs.
Rising LeverageHigher debt-to-equity elevates financial risk for a capital-intensive renewables business. Increased interest and principal service burdens reduce financial flexibility to pursue new contracts, heighten refinancing vulnerability, and amplify earnings volatility if project cash flows weaken.