Rising LeverageGrowing debt levels raise financial risk in a capital-intensive fleet business. Higher leverage increases interest burden and reduces flexibility to bid for large projects or absorb downtime, making the company more sensitive to cyclical slumps or slower-than-expected utilization.
Negative Free Cash Flow From CapexPersistent negative free cash flow from heavy capex means expansion depends on external financing or debt, raising liquidity risk. If utilization or contract rates soften, the return on recent investments may lag, pressuring cash generation and balance-sheet sustainability.
Net Margin VolatilityFluctuating net margins point to exposure to cost pressures, pricing variability across projects, or one-off items. Margin inconsistency undermines predictability of earnings and ROE, complicating capital allocation and raising the bar for sustained shareholder returns.