Thin Net Profit Margins (~4%)Low net margins leave limited built‑in protection against cost inflation, contract underperformance or pricing pressure. With margins near 4%, small adverse movements in labour, material or overheads materially compress profitability, making earnings highly sensitive to execution and contract mix over the medium term.
Elevated Financial LeverageA debt‑heavy balance sheet increases interest‑rate and refinancing exposure, reducing financial flexibility to pursue new contracts or absorb shocks. Elevated leverage constrains capital allocation, raises fixed costs, and magnifies the impact of any cash‑flow softness on solvency and investment plans over coming quarters.
Decline In Free Cash Flow And Weaker Conversion (2025)A marked drop in free cash flow and deteriorating cash conversion reduce internal funding for debt reduction, capex or dividends. Persisting weaker FCF increases dependence on external financing, heightens refinancing risk given leverage, and limits buffers against contract timing or working capital swings.