Low Net ProfitabilityA net margin of 1.24% leaves minimal buffer against project cost overruns or delays. Even with rising revenue, persistently thin net profits constrain retained earnings and reinvestment, limiting the company's ability to scale margins or absorb shocks in a capital-intensive construction environment.
Weak Cash ConversionPoor cash conversion (OCF/net income 0.21) and declining free cash flow signal difficulty turning accounting profits into liquidity. For a contractor this raises working capital strain on projects, increases reliance on external financing, and can constrain timely supplier payments and bidding capacity.
Low Return On EquityROE of 2.28% indicates limited effectiveness in generating shareholder returns from equity. Over time this can restrict the firm's ability to attract capital, fund growth internally, or deliver meaningful returns to investors relative to peers, especially if margins remain compressed.