Weak Free Cash Flow Driven By High CapexPersistent high capital spending to expand/maintain processing facilities and fleet compresses free cash flow despite positive operating cash flow. This reduces internal funding for growth, may increase external financing reliance, and limits near-term balance sheet strengthening.
Rising Total Debt Is A Watch ItemAn upward trend in total debt raises interest and covenant exposure, reducing financial flexibility. If municipal payments or contract awards slow, higher leverage could constrain bidding competitiveness and elevate refinancing or liquidity risk over the medium term.
Inconsistent Net Margins And Recent EBIT Margin DeclineVolatile operating profitability and a recent drop in EBIT margin weaken earnings visibility and capital-return capacity. Margin swings suggest exposure to variable contract terms, input cost inflation, or utilization changes that could pressure long-term cash generation and reinvestment.