Severe Operating Cash-flow VolatilityPersistent swings to negative operating and free cash flow materially raise execution and liquidity risk. Over several months this can constrain working-capital funding for projects, increase reliance on external financing, and limit the firm's ability to invest or absorb delays in receivables.
Rising Debt And Higher LeverageIncreasing indebtedness reduces financial flexibility and raises interest and covenant risks. Combined with cash-flow volatility, higher leverage can constrain bidding on large projects, limit strategic maneuvering, and heighten refinancing pressure over a 2–6 month horizon if cash generation doesn't recover.
Cyclical Margins And Project SensitivityProfitability tied to project mix and input costs creates recurring margin volatility. Structurally, this means earnings are vulnerable to competitive bidding, commodity and labor cost swings, and delayed projects, making margin sustainability and forecasting less reliable over medium-term planning horizons.