Pronounced Earnings VolatilityHistorical swings in profitability reflect sensitivity to project timing, contract structure and execution risk. Such volatility complicates forward planning, raises bid-pricing risk on fixed-price contracts, and increases the likelihood of intermittent cash stress or equity dilution during downturns.
High Absolute Debt LoadWhile leverage ratios improved, a still-substantial absolute debt burden constrains strategic flexibility. Large debt increases interest expense sensitivity, limits the capacity for new large projects without additional financing, and raises refinancing risk if cash generation weakens.
Weakened Cash-Flow CoverageA meaningful decline in operating cash coverage and slower FCF growth reduces the buffer to absorb project cost overruns or delayed payments. This lowers resilience to industry cycles and can force reliance on external financing at inopportune times, stressing long-term stability.