Falling RevenueA sharp multi‑year revenue decline materially reduces fixed‑cost absorption, erodes scale advantages and shrinks backlog. Over a 2–6 month horizon, continued top‑line contraction limits margin recovery, weakens negotiating leverage on new bids, and pressures medium‑term growth prospects.
Negative Cash GenerationSustained negative operating and free cash flow undermines liquidity and forces reliance on external financing or asset sales to fund projects. Over months this increases refinancing and counterparty risk, constrains bid capacity and raises the cost of working capital for project execution.
Thin Profitability MarginsVery low gross and net margins leave little buffer for cost overruns or input price fluctuations. Margin compression reduces retained earnings and reinvestment capacity, makes servicing debt harder, and means any adverse project outcomes can quickly push results into loss on a sustained basis.