Rising Debt In 2026Debt increased meaningfully in 2026, which modestly reduces financial flexibility compared with prior years. Higher leverage can increase interest costs and constrain discretionary spending or expansion in a weaker visitation environment, pressuring strategic optionality.
Historically Volatile Cash-flow ConversionAlthough FCF is positive recently, historical swings—negative in 2021–2022 and a drop in 2025 after a strong 2024—show conversion inconsistency. This volatility complicates multi-year planning for capex, dividends, and debt reduction, increasing execution risk over cycles.
Sensitivity To Demand Shocks And Margin PressureThe business is highly cyclical—2021–2022 demand shocks materially hurt results, and margins show some compression versus 2024–2025. Reliance on tourism and in-park spend makes earnings vulnerable to macro disruptions and cost pressures, risking margin durability.