Elevated Financial LeverageHigh leverage is persistent and constrains financial flexibility. If project cash flows or timing deteriorate, leverage amplifies downside risk, increases refinancing needs and interest exposure, and may limit the company's ability to fund growth or weather execution setbacks.
Weak Cash Coverage And FCF VolatilityDespite positive FCF in 2024–25, cash conversion is uneven and operating cash covers a small share of debt. Large capex, working-capital swings or project payments can quickly pressure liquidity, making deleveraging and consistent returns to shareholders more difficult.
Earnings Sensitivity To Project Mix And TimingProfitability is highly dependent on project mix, timing and execution. This structural volatility makes forward earnings visibility weak, complicates long-term planning, and raises execution risk for large EPC projects where cost overruns or schedule delays can sharply compress margins.