High Leverage / Increased DebtBalance-sheet commentary notes a rising debt-to-equity ratio and a relatively low equity ratio, indicating increased leverage and dependence on debt financing. Higher leverage raises refinancing and interest-cost risk, limits financial flexibility for large projects or downturns, and can impede strategic investments or balance-sheet repairs over the medium term.
Weak Free Cash Flow GenerationAlthough operating cash flow has improved, free cash flow growth is negative and operating cash flow to net income is low. This indicates difficulty converting reported earnings into discretionary cash after capex, constraining de-leveraging, reinvestment capacity, and robustness of liquidity during project timing variability or longer receivable cycles.
Low Net Profit MarginThe income-statement summary highlights that net profit margin remains low even as revenues and gross margins improved. Persistently weak bottom-line conversion reduces retained earnings for balance-sheet strengthening, provides limited buffers against project cost overruns, and constrains long-term returns to shareholders absent further margin recovery.