High Financial LeverageElevated debt-to-equity materially limits financial flexibility, increases interest expense sensitivity and raises refinancing risk. In a capital-intensive renewable business, high leverage constrains ability to invest, prolongs deleveraging and amplifies downside in weaker cash flow periods.
Inconsistent Cash ConversionSubpar cash conversion and historic FCF variability point to working-capital timing and project-cycle effects that can strain liquidity. This reduces reliability of internally generated funds for capex and debt reduction, increasing dependence on external financing at inopportune times.
Margins And Earnings VolatilityNormalization from peak margins suggests earnings are sensitive to project mix and timing. Such volatility complicates forecasting, increases execution risk for growth projects, and can impair consistent returns on equity—important for long-term investor and creditor confidence.