Weak Cash Conversion / Negative Free Cash FlowDespite positive operating cash flow in some years, persistent negative free cash flow in 2024 and TTM shows earnings are not translating into discretionary cash. This undermines the company’s ability to self-fund capex, pay down debt or finance acquisitions without external funding over the medium term.
Earnings Quality Volatility And Reporting NoiseA small operating loss in TTM alongside very large net income implies material non-operating or one-time items are driving reported profits. That volatility complicates forecasting and weakens confidence in sustainable margins and cash flows, increasing execution and capital-allocation risk.
Operational Exposure: Weather And Long Project TimelinesThe business is structurally exposed to weather-driven demand swings and is executing multiyear renovations (e.g., Jasper SkyTram, lodge work). Such exposures can cause recurring revenue volatility, escalate costs, and delay returns on capital, challenging steady long-term cash generation.