Chronic LossesPersistent annual losses erode equity, constrain reinvestment, and signal structural profitability issues. Ongoing negative margins impede the company's ability to self-fund growth, increase reliance on external financing, and raise the risk of strategic restructuring or dilution over months.
Volatile Cash GenerationSharp swings between large positive and negative cash flows reduce predictability for project execution and working-capital planning. This volatility strains liquidity planning, heightens the need for standby financing, and raises execution risk in a capital-intensive, contract-driven industry.
Equity Erosion & Negative ROEConsistent negative ROE and falling equity indicate value destruction and weaken the firm's capital base. Over time this reduces borrowing headroom, makes new equity issuance dilutive or costly, and undermines stakeholder confidence in the firm's ability to restore sustainable returns.