Cash Flow VolatilityLarge swings to negative operating and free cash flow undermine the company's ability to self-fund projects and capex. Over months this raises working-capital and timing risk, increases dependence on external financing, and can force delayed investment or higher borrowing costs in tight markets.
Rising Debt LevelsIncreasing leverage reduces financial flexibility and raises interest and covenant exposure, particularly when cash generation is uneven. In a multi-month horizon, higher debt limits ability to pursue new, capital-intensive contracts and heightens refinancing and cost-of-capital risks if cash volatility persists.
Cyclical Margins And Earnings SensitivityEarnings that fluctuate with project mix and cost variability make profitability less predictable. Over the medium term this complicates budgeting, weakens recurring margin sustainability, and increases downside in slower infrastructure cycles or when input costs rise unexpectedly.