High LeverageA balance sheet reliant on heavy debt financing raises refinancing and interest‑rate risks and constrains strategic flexibility. With decreasing equity and elevated leverage, the firm faces greater solvency pressure if cash generation falters, limiting its ability to finance new projects organically.
Weak Cash GenerationPersistent negative free cash flow undermines the company’s ability to fund capital expenditures, service debt and sustain operations without external financing. This structural cash shortfall increases reliance on markets or sponsors and limits reinvestment capacity and resilience during downturns.
Ongoing Losses And Margin PressureConsistent net losses and deteriorating margins imply structural cost, pricing, or efficiency challenges. Continued unprofitability erodes equity, limits internal capital formation, and requires significant operational improvement or stronger contracted revenue to restore sustainable profitability over the medium term.