Declining RevenueSustained revenue contraction reduces scale economics and pressures gross margins and fixed-cost absorption. A steep fall in project monetization or deliveries erodes recurring cash inflows, making it harder to rebuild profitability and fund new developments from operating cash.
Rising LeverageHigher leverage narrows financial flexibility and raises refinancing and interest-cost risk, particularly amid losses. Elevated debt amplifies downside in a protracted downturn, limiting the company's ability to invest in new projects or absorb further margin pressure without dilutive or costly funding.
Weak Cash ConversionVolatile and weak free cash flow relative to reported losses constrains internal funding for capex and completions, increasing dependency on external financing or asset disposals. Persistent weak cash conversion undermines long-term solvency and project pipeline execution.