Earnings VolatilityDespite recent margin improvement, historical swings in net income imply earnings remain lumpy and sensitive to project timing, one-offs, and execution slippages. This variability complicates cash planning, forecasting for O&M expansion, and may pressure margins during slower execution quarters.
Residual Capital-structure RiskAlthough leverage has improved, management notes the capital structure requires monitoring. Remaining balance-sheet vulnerabilities could limit flexibility to fund large projects or absorb cost overruns, keeping refinancing and covenant risk as persistent structural concerns.
Project And Sector CyclicalityRevenue and cash flow depend on lumpy project awards, customer financing availability and multi-month execution schedules. This structural exposure to project cycles and external financing conditions produces uneven order inflows and working-capital swings across 2–6 month horizons.