High LeverageElevated debt relative to equity increases interest and refinancing pressure, limiting strategic flexibility. Over the medium term, high leverage can constrain new project launches, raise funding costs, and magnify earnings volatility if sales or collections slow.
Weak Cash GenerationDeclining and volatile operating cash flows reduce the company's ability to fund construction, meet creditor schedules, and invest in new projects without external capital. Persistently weak cash conversion undermines financial stability and increases reliance on debt or equity raises.
Negative Profitability / MarginsSubstantially negative margins reflect a structural mismatch between pricing, sales mix, or rising construction costs and indicate operational inefficiencies. Without durable margin recovery, profitability remains impaired, threatening equity returns and long-term viability.