Declining RevenueA >20% revenue decline materially reduces scale and weakens absorption of fixed costs. Over several months this pressures margins, reduces bargaining power with suppliers and subcontractors, constrains reinvestment in capacity, and makes recovery contingent on winning new contracts.
Negative ProfitabilityPersistent negative net profit and EBIT margins indicate structural cost or pricing issues in project execution. Over 2-6 months this depletes retained earnings, depresses ROE, limits self-funding for growth, and increases dependence on operational fixes or cost restructuring to restore returns.
Negative Operating Cash FlowMaterial negative operating cash flow shows core activities are not generating cash, increasing reliance on financing or asset sales. Over the medium term this strains liquidity, raises refinancing risk, and can force cuts to capex or staffing, hindering project delivery and competitiveness.