Inconsistent Profitability MetricsVolatility in net profit margin and return on equity points to uneven conversion of sales into shareholder returns, potentially driven by project timing, cost variability, or pricing pressure. Persistent inconsistency can impair long-term return predictability and complicate capital allocation decisions.
Cash Flow VolatilityAlthough free cash flow turned positive in the latest year, prior volatility in operating cash flows highlights risks in liquidity and working-capital management. Fluctuating cash conversion can constrain reinvestment, dividend consistency, and the ability to absorb contract timing shocks over the medium term.
Revenue Concentration RiskHeavy reliance on government and defense contracts creates concentration and procurement risk: award timing, budget cycles, and regulatory changes can materially alter revenue flows. This dependence reduces diversification and raises execution and timing risk for sustained revenue growth.