Sharp Revenue DeclineA sharp revenue decline undermines scale economics and project pipeline visibility, reducing the firm's ability to spread fixed costs and negotiate favorable subcontractor terms. Sustained top-line contraction can materially impair margins and make it harder to restore sustainable profitability.
Deep Operating LossesSeverely negative EBIT and net margins indicate core operations are loss-making after overhead. Persistent operating losses erode equity, limit reinvestment in project execution and business development, and increase the risk that turnaround requires structural changes or asset disposals.
Weak Cash GenerationDeclining free cash flow and an OCF-to-net-income ratio of 0.12 signal poor cash conversion. Weak cash generation constrains the company's ability to fund working-capital needs and new projects internally, increasing reliance on external financing or asset sales and raising execution risk.