Volatile And Negative Cash GenerationMaterial negative OCF and FCF in 2025, following prior volatility, signals persistent working-capital swings and project timing risks. This undermines the company's ability to self-fund projects and capex, increasing reliance on external financing and raising durable execution and liquidity risk over the coming months.
Recent Step-up In LeverageA jump in debt-to-equity to ~0.80 raises interest and refinancing exposure versus historical norms. Higher leverage reduces financial flexibility, increases fixed costs, and constrains bidding capacity on new projects, amplifying downside risk if profit margins or cash conversion remain under pressure in the medium term.
Margin Compression TrendSustained margin deterioration reflects cost pressure and/or worse project mix, eroding returns on projects and shareholder equity. If structural, compressed gross and net margins will limit internal cash generation and investment capacity, forcing tougher bidding or cost programs to restore long-term profitability.