Weak Operating Cash GenerationA gap between reported profits and cash flow signals working-capital strain or timing issues on collections/payment terms. Persistent zero operating cash flow undermines the company's ability to self-fund capex, reduce debt, or return capital, posing a material operational constraint over months.
Rising LeverageIncremental leverage raises fixed interest obligations and reduces financial flexibility at the project and corporate level. In an industry with lumpy receivables and cyclical payments, higher debt can amplify risk and limit the company's capacity to bid larger contracts or absorb shocks over the medium term.
Free Cash Flow DeteriorationA sharp decline in free cash flow curtails discretionary spending, including maintenance capex, strategic investments, and shareholder distributions. If this weakness persists, it could force greater reliance on external financing and constrain sustainable growth initiatives over the next several quarters.