Negative Margins And ProfitabilityPersistent negative net margins and shrinking gross margins indicate structural operational weakness. Over months this erodes retained earnings, limits reinvestment in projects, and reduces the company's ability to generate shareholder value absent a sustained recovery in margins or revenues.
No Operating Or Free Cash Flow In 2024A lack of operating and free cash flow is a critical structural warning sign: it forces reliance on external financing, slows project completion, and constrains discretionary spending. Without restored cash generation, liquidity and execution on the pipeline remain vulnerable.
High LeverageElevated leverage raises refinancing and interest-rate sensitivity, limiting strategic flexibility. In a capital-intensive sector, high debt burdens can force asset sales or curtail new development when credit tightens, increasing long-term execution and solvency risk.