Consistent Net LossesPersistent net losses weaken retained earnings and limit internal funding for growth or capex. Structural profitability shortfalls indicate challenges in pricing, cost control, or project mix that hamper ability to build reserves or absorb shocks without external capital over the medium term.
Weak Cash GenerationNegative operating and free cash flow restricts working capital funding and reduces capacity to bid for new contracts. For construction firms, poor cash conversion increases reliance on financing, raising execution risk and limiting strategic investments over the next several quarters.
Inconsistent Revenue & Recent DeclineRevenue volatility and a recent year-over-year decline signal unstable order intake or backlog execution. For an infrastructure contractor, sustained growth depends on steady contract wins; inconsistency raises forecasting and margin risk over the coming 2–6 months.