Relatively High LeverageElevated debt levels increase interest and refinancing risk, reducing financial flexibility. In a rising rate environment or during construction slowdowns, higher leverage can pressure cash flow and constrain the firm's ability to invest or bid competitively for large projects.
Inconsistent Cash GenerationNegative or volatile operating cash flow and weak free cash conversion undermine the sustainability of reported profits. Over months, this can force reliance on external funding for working capital, capex, or debt servicing, limiting strategic options and raising financing costs.
Dependence On External FinancingStructural dependence on external financing reduces resilience to funding shocks and raises vulnerability to credit conditions. If credit tightens or rates rise, project delivery, margin preservation, and growth investments may be constrained, affecting medium-term operational plans.