Material Revenue DeclineA steep year-on-year revenue decline signals weaker sales execution or slower collections, reducing scale and buffering for fixed costs. Persisting revenue contraction over months can pressure project cash flows, lengthen project cycles, and weaken the company’s ability to self-fund construction and new launches.
Negative Free Cash Flow And Cash Conversion IssuesOngoing negative free cash flow and poor operating-cash-to-net-income conversion indicate structural liquidity strain. Over the medium term this raises reliance on external financing or pre-sales, increases financing costs, risks project delays, and constrains reinvestment into new projects or margin-improving initiatives.
Declining Net And EBIT MarginsWhile gross margins improved, falling EBIT and net margins point to rising operating, financing or overhead pressures. Structurally, this compresses sustainable profitability and free cash generation, limiting ability to self-finance growth, reward shareholders, or cushion against construction cost or interest rate shocks.