High Absolute Debt LoadDespite improved leverage ratios, a ~$19.2B absolute debt stock leaves the company exposed to refinancing timing and higher interest costs. Large nominal debt increases sensitivity to rate cycles and limits cushion for opportunistic investments or sustained cash‑flow shortfalls over a multi‑quarter horizon.
Volatile Free Cash Flow ConversionOperating cash flow has risen, but free cash flow has been inconsistent and often negative historically; TTM conversion (~45% of net income) and an anomalous coverage datapoint reduce confidence in internal funding. Persistent FCF volatility complicates dividend coverage and self‑funding of large developments.
Rising Development Costs & Delivery RiskHigher per‑MW development costs, longer commencement lags (driven by very large deals) and rising community/permitting resistance materially extend payback timelines and compress yields. Structural supply‑chain, labor and local approval challenges can delay revenue realization and raise unit economics over multiple years.