Very High Financial LeverageExtremely high leverage materially raises refinancing, interest and covenant risks in a capital-intensive sector. Heavy debt limits balance sheet flexibility to bid on large projects, fund working capital or invest in R&D, and makes the firm more vulnerable to revenue shocks or higher interest rates over the medium term.
Weak Operating Cash GenerationA collapse to zero operating cash flow and sustained negative free cash flow indicate the business is not generating internal funding for capex or debt servicing. Reliance on external financing raises execution risk on long-duration projects and can impair supplier and partner relationships, threatening medium-term operations.
Declining Revenue TrendPersistent revenue declines reduce scale benefits and weaken negotiating leverage with suppliers and partners in the nuclear supply chain. In a fixed-cost, project-driven industry, shrinking top-line undermines margin sustainability, constrains reinvestment in technology, and may limit the company’s ability to secure future long-term contracts.