Margin CompressionSustained declines in gross and net margins materially reduce free cash generation and returns on invested capital. If structural cost pressures or pricing competition persist, the company's ability to fund capex, absorb project overruns, and deliver shareholder returns will be constrained over the medium term.
Negative Free Cash FlowDeepening negative FCF driven by elevated capex raises financing and liquidity risks. Over multiple quarters this can force external funding, dilute flexibility for new bids, or postpone maintenance and efficiency investments, weakening competitive positioning in a capital-intensive sector.
Revenue And Earnings VolatilityDeclining revenue coupled with severe EPS contraction signals volatile project economics and uneven utilization. This undermines earnings quality and makes forecasting cash flows and returns more difficult, complicating long-term planning, supplier contracts, and investor confidence in sustained profitability.