Declining RevenuesPersistent revenue decline erodes scale benefits and weakens competitive position in a capital-intensive industry. It pressures fixed-cost absorption, limits pricing leverage, and makes funding profitable growth harder, requiring structural changes to product mix, customer focus, or market strategy to restore sustainable top-line momentum.
Ongoing Operating LossesSustained negative EBIT and net losses deplete equity and hinder reinvestment into operations and product development. Over time this increases dependence on external financing, raises investor scrutiny, and constrains the company's ability to compete or scale in the capital-intensive oil & gas equipment sector without clear structural turnaround.
Negative And Inconsistent Cash FlowRepeated negative free cash flow and volatile operating cash flow limit the company's ability to service debt, invest in maintenance or growth, and withstand industry cyclicality. This structural cash generation weakness heightens refinancing risk and may force asset sales or dilutive capital raises absent a sustained operational recovery.