Revenue ContractionPersistent top-line declines undermine the company's scale economics and make fixed-cost absorption harder over the medium term. If revenue contraction continues, it will pressure margins, slow deleveraging, and limit resources for strategic investments or contract retention initiatives.
Thin Net MarginsLow single-digit net margins leave limited buffer against commodity swings, input inflation or contract price pressure. Structurally thin profitability reduces internal reinvestment capacity and amplifies earnings volatility, making sustainable margin expansion essential for long-term capital returns.
Moderate Cash Conversion / Working-capital VariabilityCash conversion covering only ~56% of net income indicates earnings do not fully translate into discretionary cash, reflecting working-capital swings. Over months this constrains financing flexibility, hinders rapid deleveraging, and increases reliance on external funding during adverse cycles.