High LeverageElevated debt levels raise interest expense and refinancing risk, constraining financial flexibility. High leverage limits capacity to invest in fleet renewal or depot expansion and increases vulnerability to revenue shocks, threatening long-term solvency if cash generation doesn’t improve.
Revenue & Margin DeclineSustained revenue declines and margin compression signal weakening pricing power or rising costs. Persisting negative profitability undermines retained earnings, restricts reinvestment capacity, and can erode competitive position as rivals invest in service, fleet or technology.
Weak Free Cash FlowFalling free cash flow reduces ability to service debt, fund maintenance capex and support growth initiatives. Repeated cash shortfalls increase dependence on external financing, elevate cost of capital and may force deferred equipment investment, harming long-term service capacity.