Declining Free Cash FlowA sizable FCF decline reduces financial flexibility for capex, acquisitions, or dividends. If sustained, lower free cash flow constrains the company’s ability to convert earnings into investable cash, forcing trade-offs between growth investments and shareholder distributions.
Project Revenue VolatilityHeavy reliance on project-based system integration generates lumpy revenue and working capital swings. Winning new contracts is cyclical and can pressure margins; sustaining growth requires consistent sales execution and backlog management to avoid revenue and profitability volatility.
Cash Conversion Needs ImprovementDespite profitability, weaker cash conversion limits strategic options and increases sensitivity to working capital dynamics. Management may need to prioritize billing, collections, or cost timing to convert earnings into reliable cash inflows for long-term stability.