Negative Shareholders' Equity And Insolvency RiskNegative equity and a negative equity ratio signal structural balance-sheet weakness and potential insolvency risk. Over months this constrains the firm's ability to secure performance bonds, win large contracts, or attract financing, materially limiting operational flexibility and growth.
Persistent Negative Operating And Free Cash FlowSustained negative operating and free cash flow undermines the company's ability to fund working capital, mobilization advances, and retention obligations from internal resources. Over the medium term this increases dependence on external financing or restructuring, raising execution risk on projects.
Declining Revenue And Continued Negative ProfitabilityA multi-year revenue decline combined with shrinking gross margins and persistent net losses erode competitive capacity to invest in people, equipment, and bids. Structurally, this reduces scale benefits, weakens supplier terms, and hampers the firm's ability to win and profitably execute future infrastructure contracts.