Negative Operating & Free Cash FlowOperating and free cash flow turned negative in 2025 after prior intermittent positives. Persistent negative cash conversion increases reliance on external funding, constrains capex and working-capital flexibility, and undermines durability of reported earnings and capacity to fund dividends or repay debt.
Rising LeverageDebt-to-equity roughly doubled to ~1.09 since 2021, reflecting heavier reliance on debt financing. Higher leverage raises interest and refinancing risk, reduces financial flexibility for new contracts or downturns, and magnifies earnings sensitivity if margins remain under pressure.
Margin CompressionGross and net margins have trended lower (gross ~23.9%, net ~2.4%), with EBIT/EBITDA margins also weakening. Structural margin erosion indicates rising project costs or weaker pricing power, reducing return on incremental revenue and leaving profits highly sensitive to cost or volume shocks.