High LeverageHigh debt-to-equity raises structural financing risk: interest burden and refinancing exposure are elevated, particularly if rates rise. Over months this constrains strategic flexibility, increases default risk on project setbacks, and limits ability to fund growth from internal sources.
Negative Free Cash FlowPersistent negative free cash flow from heavy capex and weak operating cash generation forces reliance on external financing. This undermines capacity to deleverage, reduces resilience to contract delays, and creates ongoing pressure on liquidity and capital allocation over the medium term.
Profitability CompressionDeclining net and operating margins point to structural pressure from rising costs, pricing or execution inefficiencies. If sustained, margin compression erodes cash flow and returns, limiting reinvestment and forcing either higher leverage or cuts to maintain shareholder returns over the coming quarters.