Rising LeverageThe material increase in leverage reduces financial flexibility and raises interest-rate and refinancing sensitivity. Higher debt levels constrain capacity for counter-cyclical investment and amplify downside risk if project cash flows deteriorate, impacting stability over 2-6 months.
Volatile Cash ConversionMulti-year swings in free cash flow point to project timing and working-capital variability. Despite TTM improvement, this volatility complicates budgeting, increases reliance on short-term funding when cycles turn, and elevates execution risk for multi-project contracts.
Thin Gross Margins And Profit SensitivityA thin gross margin leaves limited buffer against input-cost inflation, subcontractor price moves, or adverse project mix. With modest margin headroom, cost overruns or competitive pricing pressure could quickly erode operating profits and weaken sustained margin expansion.