Volatile And Negative Cash GenerationMaterial swings to negative operating and free cash flow indicate project timing and working-capital stress, increasing reliance on external funding. Persistent cash burn undermines the company’s ability to self-fund capex or absorb delays, raising execution and liquidity risk over the medium term.
Recent Step-up In Debt LevelsThe rise in leverage to around 0.8 reduces financial flexibility and heightens interest and refinancing exposure. If margins remain under pressure, higher debt amplifies downside risk, constrains bidding capacity for new projects, and limits ability to absorb further operational shocks.
Margin Compression And Weakening Profitability TrendSustained margin contraction suggests rising input costs or adverse project mix, eroding return on contracts. Continued profitability erosion reduces internal cash generation, weakens coverage for higher leverage, and makes it harder to invest in efficiencies or competitive bids over the coming months.