Elevated LeverageHistorically very high debt and still-meaningful leverage in 2025 amplify sensitivity to project delays, interest cost increases, and cyclical downturns. Persistent leverage constrains strategic flexibility, raises refinancing and covenant risks, and can limit capacity to invest or bid on large contracts.
Volatile Free Cash FlowSwinging free cash flow driven by working-capital swings undermines predictable funding for capex, debt reduction, or dividends. Such volatility can force reliance on short-term financing, raise effective funding costs, and complicate multi-month planning for project execution and growth investments.
Margin InconsistencyInconsistent gross and net margins and weak operating leverage suggest project-level pricing or cost control issues. If margins fail to scale with revenue, earnings quality remains vulnerable to cost inflation, competitive pressure, and execution risks, limiting sustainable profit expansion.