EPS ContractionA notable decline in EPS signals pressure on per-share profitability which can reflect margin compression, higher costs, or one-off charges. If negative EPS trends persist, the company may face constraints on reinvestment, shareholder returns, and may need to prioritize cash preservation over growth.
Free Cash Flow VariabilityVariable free cash flow increases planning risk for an EPC firm that needs steady funding for project mobilization and capex. Fluctuations can force short-term borrowing or defer maintenance/investment, limiting the firm’s ability to scale or respond to larger, capital-intensive contract opportunities reliably.
Rising Liabilities TrendA gradual rise in total liabilities, even from a low base, could indicate growing working-capital needs or higher payables/borrowings. If sustained, this trend can erode liquidity buffers, increase interest or covenant risk, and reduce flexibility to absorb project delays or client payment slowdowns.