Declining Revenue TrendMaterial revenue contraction reduces scale benefits and undermines pricing leverage. Falling top-line pressures gross margins as fixed-cost absorption weakens, limits reinvestment for capacity or product development, and risks weakening market position if the trend persists.
Persistent Negative ProfitabilityOngoing negative EBIT and net income point to structural operating inefficiencies. Persistent losses erode retained capital, constrain reinvestment, and limit the company's ability to self-fund improvements, requiring either operational fixes or outside capital to restore sustainable profitability.
Rising LeverageIncreasing leverage raises interest and refinancing risk, reducing financial flexibility during construction-sector downturns. Higher debt burdens can crowd out investment in processing upgrades or working-capital support and make the company more sensitive to cost-of-capital shifts over the medium term.