Declining Revenue And ProfitabilitySustained revenue declines and material net losses signal structural demand shortfalls or execution problems. Persistent negative margins erode retained capital, limit reinvestment in equipment and tech, and impair the firm's ability to compete effectively in medium-term bidding cycles.
High Leverage And Falling EquityElevated leverage and shrinking shareholders' equity reduce financial flexibility to fund projects or absorb delays. High debt raises refinancing and covenant risk, increases cost of capital, and may force asset sales or limit bidding capacity, constraining sustainable growth prospects.
Weak Cash GenerationDeclining operating cash flow and negative free cash flow growth reflect poor cash conversion and strained liquidity. Weak cash generation limits the company's ability to service debt, invest in maintenance or innovation, and sustain long-duration projects without external funding.