Negative Cash FlowA deterioration to negative operating and free cash flow raises quality-of-earnings concerns and constrains internal funding for working capital and capex. If cash conversion does not normalize, the company may need external financing or slower growth, increasing execution risk over the medium term.
Margin CompressionVisible margin decline suggests rising input costs, tighter pricing or adverse project mix. Persistent compression would erode return on equity and reduce the company’s ability to self-fund growth, making profitability more sensitive to competitive pressures and cost inflation.
Execution & Working-Capital RiskThe business is execution-intensive; returns hinge on on-time, on-budget project delivery and tight receivables/WIP management. Historical working-capital swings and cash volatility mean delays or cost overruns could quickly strain liquidity and margins over the next several quarters.