Declining Free Cash Flow GrowthA falling free cash flow growth trend and FCF at ~72% of net income reduces internally available funds for capex, dividends and acquisitions. In a project-heavy business, volatile cash conversion can constrain investment timing and increase reliance on external financing during busy periods.
Thin Net ProfitabilityLow net margin and modest ROE limit the buffer against input cost inflation or contract overruns. In engineering and construction, tight profitability makes earnings sensitive to project execution and pricing pressure, restricting retained earnings available for growth initiatives over time.
Project-Driven Revenue & Industry ConcentrationHeavy dependence on project contracts and telecom carrier demand creates exposure to contract timing, competitive bidding and sector cycles. This structural concentration increases revenue volatility and execution risk versus more diversified infrastructure providers or firms with larger recurring revenue shares.