Revenue DeclineA ~24% revenue drop materially weakens scale and reduces fixed-cost absorption in project-driven engineering. Persistent top-line contraction undermines client pipeline strength and pricing power, making margin recovery harder and increasing the burden on contract wins to restore sustainable earnings.
Persistent Negative Operating Cash FlowConsistent negative operating and free cash flow (~-16.5M) erodes liquidity and forces dependence on external funding or asset/liability restructuring. Over multiple quarters this reduces strategic flexibility, risks covenant pressure, and raises execution risk for backlog conversion into profitable cash receipts.
Margin Collapse And Equity ErosionSevere gross and net margin compression, combined with equity decline and ROE around -42%, signals structural deterioration in project economics or cost control. That reduces return on invested capital and increases the likelihood of continued value erosion unless pricing, costs, or contract mix are decisively corrected.