Trailing EPS DeclineA more than 12% decline in EPS indicates earnings pressure that can constrain retained earnings and reinvestment capacity. Persistent EPS erosion over reporting periods could reflect margin compression, project mix shifts, or rising operating costs that weaken medium-term profitability trends.
Net Profit Margin PressureA shrinking net margin despite healthy gross margins suggests higher SG&A, R&D, or one-off items are eroding bottom-line. If structural, this reduces internal capital for growth initiatives and dividends, and signals the need for sustained efficiency improvements to protect long-term returns.
Free Cash Flow VariabilityVariability in free cash flow relative to net income undermines predictability for capex, R&D and service investments. In capital-heavy marine technology, uneven FCF can delay product development or maintenance cycles and makes funding multi-year contracts or scaling operations more challenging.