Weak Cash GenerationSustained negative operating and free cash flow undermines the company's ability to self-fund operations, capex, or debt service. Over months this forces reliance on external financing or equity, compresses flexibility, and elevates execution risk for contracts and working-capital cycles in construction projects.
Ongoing Losses And Margin ErosionPersistently negative net margins and falling operating profitability indicate structural cost or pricing pressures. Without sustained margin recovery, the firm faces degraded returns on capital and diminished reinvestment ability, raising long-term concerns about competitive viability and shareholder value creation.
Significant Revenue And EPS DeteriorationA sharp revenue decline and collapse in EPS reflect weakening demand, lost contracts, or execution issues. Over the medium term, shrinking scale reduces operating leverage, weakens negotiating power with suppliers, and makes fixed-cost absorption harder, prolonging the recovery path for margins and cash flow.