Sharp 2026 Debt Step-upTotal debt more than doubled in 2026, materially increasing leverage and refinancing exposure. This structural rise raises interest burden and cycle sensitivity, constrains capital allocation, and heightens refinancing and solvency risk if operating cash flows do not recover, limiting strategic flexibility.
Very Weak Cash GenerationRepeated negative operating cash flow and an about -¥108.1B free cash flow in 2026 create durable funding pressure. Persistent cash deficits force dependence on external financing or asset disposals, increase financing costs, and threaten project completion and creditor confidence absent a material improvement in cash conversion.
Top-line Volatility And Recent DeclineRevenue swings and a ~9% decline in 2026 reduce visibility for future project cash flows and margin sustainability. For a capital-intensive developer, recurring top-line volatility complicates planning, increases working-capital strain, and makes debt servicing and long-term investment decisions more uncertain across cycles.