Persistently Negative Shareholders' EquityNegative equity over several years materially weakens the balance sheet and reduces financial flexibility. It limits the company's ability to absorb project losses, secure bank financing on favorable terms, and bid on large public works without additional capital or guarantees, raising long-term solvency risk.
Very Thin MarginsWith only ~2% gross margin and near-zero net margins, profitability is highly sensitive to small cost overruns or contract price pressure. In a sector with fixed-price contracts and cost variability, such thin margins limit reinvestment capacity, increase default risk on projects, and make earnings fragile.
Volatile, Often Negative Cash FlowIrregular and frequently negative cash flow raises funding and working-capital risks in a project-driven business. Reliance on external financing to cover project timing gaps is more likely given negative equity, increasing financing costs and constraining the ability to scale without material balance-sheet improvement.