Negative Cash FlowRecurrent negative and volatile operating and free cash flows reflect working-capital and project-timing risk. Over months this weakens the company's ability to self-fund capex or dividends, increasing dependency on external financing and raising execution risk on large contracts.
Rising LeverageAn uptick in debt materially reduces balance-sheet flexibility in a cyclical construction sector. Higher leverage increases interest expense and covenant exposure, making the company more sensitive to project delays or margin compression and constraining strategic investments.
Margin VolatilityChoppy margins reflect structural sensitivity to contract mix, pricing pressure, and execution. This persistent volatility means earnings and cash generation can swing materially with a few projects, complicating forecasting and reducing the predictability of medium-term returns.