High LeverageA debt-to-equity ratio above 1 indicates significant leverage which increases refinancing and interest rate risk. High leverage can constrain strategic flexibility, reduce ability to bid on large infrastructure projects, and amplify earnings volatility if cash flows weaken or capital costs rise.
Weakened Cash GenerationA large drop in free cash flow growth and low FCF-to-income imply earnings are not converting efficiently to cash. This reduces capacity to deleverage, invest in manufacturing scale or new materials, and maintain stable dividends, leaving the business vulnerable during project slowdowns.
Revenue Decline TrendNegative revenue trends signal pressure on volumes or market share in core construction markets. Persistent top-line declines can erode scale economics, limit ability to sustain improved margins, and make it harder to absorb fixed costs, particularly given high leverage and weaker cash conversion.