Sharp Revenue Decline And LossesA ~46.5% revenue collapse in FY2025 and a swing to losses materially reduce scale, pricing power, and capacity to cover fixed costs. In construction, rebuilding backlog and restoring revenue often takes multiple quarters, making earnings recovery and margin normalization a multi-period challenge.
Persistent Negative Cash GenerationSustained negative operating and free cash flow indicates the business is burning cash rather than self-funding operations. This persistent cash drain limits reinvestment, increases dependence on the balance sheet or external financing, and elevates liquidity risk if market or project conditions worsen.
Thin Gross Margins Limiting ResilienceMid-single-digit gross margins leave little buffer for overhead, cost inflation, or project overruns. Thin margins, coupled with negative returns on equity in recent years, indicate structural pricing or cost issues that impair durable profitability and limit management's ability to generate attractive returns on deployed capital.