Rising LeverageA material increase in debt-to-equity (to ~1.10) signals greater reliance on debt financing, reducing financial flexibility. Higher leverage raises sensitivity to interest-rate moves and refinancing risk, which could constrain capital allocation or margin support if funding costs rise or demand softens.
Volatile Cash ConversionMulti-year swings in free cash flow and working-capital timing show cash conversion can be inconsistent. With increased leverage, these volatility patterns heighten the risk of liquidity stress or the need for external funding during project timing mismatches or slower periods.
Thin Gross Margins And Project SensitivityA relatively thin gross margin (~14%) provides limited buffer against rising input costs, bid competition or execution issues common in infrastructure contracting. This amplifies earnings sensitivity to project mix and operational setbacks, increasing downside risk to profitability.