Weak Cash GenerationOperating cash flow deterioration and a very low free-cash-flow to net income ratio indicate earnings are not converting into usable cash. That constrains the company's ability to fund new projects, service debt, or return capital, increasing reliance on external financing and raising medium-term execution risk.
Persistent Leverage RiskAlthough leverage metrics improved, the company still carries relatively high absolute debt. In a capital-intensive sector, elevated debt increases interest and refinancing exposure, limits strategic optionality, and can magnify downside in slower sales cycles or rising interest rate environments.
Rising Cost PressuresA year-over-year drop in gross margin points to rising input or construction costs eroding unit economics. Persistent cost inflation without corresponding pricing power will compress long-term margins, forcing tougher trade-offs between margin preservation, pricing competitiveness and project throughput.