Volatile Revenue GrowthVolatile and recently declining revenues reduce predictability of backlog and cash flow in a project-driven business. Over the medium term, this can impair utilization of resources, weaken negotiating leverage with suppliers, and make planning capex and hiring more difficult.
Negative Free Cash FlowSustained negative free cash flow strains liquidity and forces reliance on external financing or asset sales. In construction, weak cash conversion can impair ability to fund working capital for contracts, raise bonding costs, and limit capacity to pursue new, larger projects.
Rising LeverageIncreasing leverage reduces financial flexibility and raises interest and refinancing risk. Combined with revenue and cash-flow weakness, higher debt can elevate default risk on downturns, constrain bidding for new contracts, and limit strategic investment options over the coming months.