Weak Cash ConversionNegative cash conversion indicates earnings are not translating into cash, which is a durable operational risk. It constrains funding for capex, working capital and dividends, increases reliance on external financing, and limits flexibility through cycles.
Low Net Profit MarginsVery thin net margins reduce the company's ability to absorb cost inflation, bid competitively, or fund growth internally. In construction, low bottom-line profitability makes outcomes sensitive to project overruns and compresses long-term free cash generation.
Volatile Free Cash FlowVolatile and declining FCF undermines sustainable investment and debt paydown. Persistent FCF weakness forces prioritization of short-term liquidity over strategic projects, raising execution risk and potentially increasing funding costs when markets tighten.