Rising LeverageThe trend of growing total debt, even from a moderate starting D/E, increases fixed interest obligations and refinancing exposure. Continued debt accumulation could constrain strategic flexibility, raise financing costs, and amplify earnings sensitivity to slower demand or higher rates over the next several quarters.
Free Cash Flow VolatilityWhile operating cash flow is positive, volatile and recently negative free cash flow undermines reliable internal funding for growth, dividends, or debt servicing. Persistent FCF variability forces dependence on external financing or curtailed capex, weakening durable cash-generation credibility.
Low & Volatile Operating ProfitabilityDespite revenue gains, low net margins and fluctuating EBIT indicate limited resilience to construction-market cycles and operational swings. This reduces retained earnings for reinvestment, complicates medium-term forecasting, and increases the firm's vulnerability during demand downturns.