Volatile Cash GenerationOperating and free cash flow swung sharply year-to-year, showing weak and uneven conversion of reported earnings into cash. This volatility raises working-capital and execution risk, potentially constraining capex, tender capacity, and dividend sustainability over coming quarters.
Thin Margins And CyclicalityNet margins are modest and have oscillated historically, leaving little cushion against input-cost inflation or project overruns. Combined with past loss-year cyclicality, thin margins increase exposure to contract risk and could compress returns in weaker demand periods.
Rising Absolute DebtAlthough leverage ratios improved, absolute debt rose in FY2026. With cash flow volatility, higher nominal debt can elevate refinancing and interest-rate exposure, reducing financial flexibility and increasing funding risk during project slowdowns or tight credit windows.