Sustained Recent LossesThree consecutive years of losses erode retained earnings and operational flexibility. Persistent negative operating profit reduces reinvestment capacity, pressures ROE, and increases the likelihood management must cut investment, restructure operations, or seek external capital to sustain business continuity.
Negative Operating And Free Cash FlowNegative operating and free cash flow across recent years means the company is consuming cash rather than generating it, creating liquidity and funding risk. Over months this limits ability to fund working capital, capex, or dividends and raises the prospect of asset sales or external financing at adverse terms.
Volatile Revenue And Thin Gross MarginsRevenue swings and persistently thin gross margins weaken earnings resilience and make it harder to absorb cost inflation or project delays typical in engineering & construction. Structurally low margins reduce buffer against downturns and lengthen the timeline to regain sustainable profitability.