Declining Revenue And EPS GrowthMaterial declines in revenue and EPS signal recent contract shortfalls or margin pressure. If this trend persists it can erode backlog, reduce pricing leverage, and impair medium-term profit recovery, complicating planning and investment decisions for several quarters.
Volatile And Declining Free Cash Flow GrowthFree cash flow swings driven by capex variability can limit the firm's ability to self-fund project working capital and strategic investments. Over months this raises the risk of relying on external funding despite low leverage, and constrains financial flexibility.
Project-based Business ExposureHeavy dependence on winning and executing project contracts exposes Fujita to bidding cycles, fixed-price risk, supply chain and labor cost shocks. Persistent execution or procurement issues could compress margins and weaken backlog over the medium term.