Declining Revenue And LossesSustained revenue decline and ongoing net losses undermine scale economics and constrain reinvestment. Over months, this hampers project funding, reduces bargaining power with contractors, and makes it harder to restore margins without a material operational turnaround or new profitable projects.
High Leverage And Shrinking EquityElevated debt relative to equity reduces financial flexibility and raises refinancing risk, especially in a higher-rate environment. Structurally, this limits the company's ability to start new projects, increases interest burden, and raises the likelihood of asset disposals or equity dilution to shore up the balance sheet.
Negative Free Cash Flow & Poor Cash ConversionNegative free cash flow and weak operating cash conversion signal that core operations don't generate sufficient cash to fund growth or service debt. This structural cash shortfall increases reliance on external financing, raising liquidity and solvency risks over the medium term.