High LeverageA relatively high debt-to-equity ratio raises refinancing and interest service risk, constraining strategic flexibility. With capital-intensive project cycles, sustained leverage can limit bidding capacity, increase funding costs and magnify downside if project cash flows slip in the medium term.
Negative Free Cash FlowPersistently negative free cash flow driven by high capex and project spend requires ongoing external financing. This reliance can strain liquidity, increase financing costs, and reduce the firm's ability to self-fund growth or rapidly de-lever within a 2–6 month horizon.
Earnings VolatilityReported volatility in EBIT and net income signals execution and timing risks inherent in large EPC and installation projects. Such variability undermines predictability of margins and cash flows, complicating planning, debt servicing and investor visibility over the medium term.