Persistent Negative Operating And Free Cash FlowSustained negative operating and free cash flow forces reliance on external financing to fund working capital and capex. That undermines self-funding of projects, increases refinancing risk, and limits flexibility to absorb delays or cost overruns across multi-month project timelines.
Rising LeverageIncreasing debt levels elevate interest expense and reduce financial flexibility. Combined with weak cash conversion, higher leverage raises solvency and covenant risks, constrains bidding ability on large contracts, and can squeeze margins if funding costs rise over the medium term.
Declining Revenue And EPS TrendsMaterial negative revenue and EPS growth rates signal weakening top-line execution or contract mix and severe earnings pressure. Over 2–6 months this can reduce internal cash generation, strain margins, and force dependence on external funding or margin-dilutive contract terms.