Negative Free Cash FlowMaterial negative free cash flow driven by capital expenditure can constrain the company’s ability to self-fund expansion and equipment upgrades. Persistent FCF deficits may require external financing, increasing funding costs and exposing the business to liquidity pressure during contract or demand slowdowns.
Concentration On PPP ContractsHeavy reliance on public-private partnerships concentrates revenue exposure to tariffs, contract renewals and public payment cycles. Structural dependence creates risk of pricing pressure, slower collections and renegotiation outcomes that can materially affect volumes and margins long term.
Modest Return On EquityAn ROE below double digits suggests shareholder capital is producing moderate returns relative to growth and capital intensity. This may indicate underutilized assets or margin headroom; without efficiency or margin improvement, ROE may limit long-term shareholder value creation.