Rising LeverageDebt-to-equity climbing toward ~0.81 reflects increasing balance-sheet gearing for a regulated-energy profile. Higher leverage reduces financial flexibility, raises interest service risk, and limits capacity to absorb demand shocks or fund growth without raising additional capital if margins or volumes weaken.
Structural Margin Compression Vs Earlier YearsA material decline in gross margin versus historical peaks suggests persistent cost pressures, competitive price dynamics, or mix shifts that have compressed profitability. If structural, such margin erosion can limit internally generated funds and constrain reinvestment and returns over multiple quarters.
Imperfect Cash Conversion And Recent FCF DeclineAlthough FCF is positive, a recent decline and OCF at ~55% of net income indicate working-capital or timing volatility. Uneven cash conversion increases forecast risk for capex, dividends and debt repayment, making capital allocation less predictable across a 2–6 month horizon.