Negative Operating MarginsPersistently negative EBIT margins point to structural weakness at the project execution level—overheads, subcontracting, or cost overruns. Even with revenue growth, weak operating profitability reduces the ability to absorb input-cost inflation, delays, or contract disputes and threatens sustainable earnings generation.
Leverage Remains SignificantAlthough debt metrics improved, meaningful leverage remains. High leverage increases interest and covenant risk, limits bidding capacity for large projects, and raises refinancing vulnerability if cash flows slip. This structural risk can constrain growth and make the firm sensitive to macro disruptions.
Volatile Earnings Per ShareA steep negative EPS growth rate reflects earnings volatility and weak historical profit stability. For an infrastructure contractor, such swings can impede long-term planning, restrict re-investment in equipment or margins, and hinder access to lower-cost capital needed for winning larger or multiple projects.