Recurring Net Losses And Negative MarginsSustained net losses and negative margins indicate structural profitability issues—likely from pricing, cost control, or project execution problems. Over months this erodes equity returns and limits reinvestment capacity, making recovery and durable margin restoration more difficult.
Persistent Negative Operating And Free Cash FlowOngoing negative operating and free cash flow undermines the firm's ability to fund working capital and capex internally. Reliance on external financing raises liquidity and refinancing risks, constraining bidding on new projects and limiting strategic investment for months ahead.
Sharp Revenue And EPS DeteriorationA severe revenue decline and dramatic EPS contraction signal material demand loss or project setbacks. This weak top-line trend hampers operating leverage, makes fixed costs harder to cover, and raises the risk of continued underperformance absent structural business changes.