High LeverageHigh debt reliance increases refinancing, interest-rate and covenant risks over the medium term. In a cyclical construction sector this reduces financial flexibility to bid competitively, absorb project delays, or invest in growth without incurring additional expensive financing.
Negative Free Cash FlowPersistent negative free cash flow forces dependence on external financing and limits capacity to deleverage or return capital. Over months this constrains strategic options, increases funding costs, and raises execution risk if working capital or capex needs remain elevated.
Contracting Profitability MarginsDeclining net and operating margins signal pressure from rising costs or pricing weakness. Even with revenue growth, margin erosion undermines cash generation and resilience, making it harder to service debt, invest in growth, or build reserves during slower demand periods.