Negative Operating & Free Cash FlowSustained negative operating and free cash flows constrain the firm's ability to fund capex, service debt, and sustain distributions. Persistent cash generation shortfalls can force external financing, raise cost of capital and limit strategic flexibility over the coming quarters.
Rising And Fluctuating LeverageAn uptick and variability in leverage increases interest expense and refinancing risk, reducing financial resilience. In an industry with project timing variability, higher debt magnifies liquidity stress and heightens the need for disciplined working capital and covenant management.
Modest EBIT/EBITDA MarginsRelatively low operating margins limit the company's ability to convert revenue into durable cash flow, leaving less buffer against cost shocks or tender price competition. Without sustained efficiency improvements, margin pressure could constrain long-term free cash flow generation.