Very Thin Net ProfitabilityA net margin around 0.3% offers a very small buffer against cost inflation, project overruns or pricing pressure. Thin profitability limits internal capital for growth or debt repayment and makes results highly sensitive to execution, increasing structural business risk if project complexity rises.
Marked Increase In LeverageA higher debt-to-equity ratio materially reduces financial flexibility and raises interest and refinancing risk. With modest profits and limited retained earnings, elevated leverage constrains the company's ability to absorb shocks, pursue strategic investments, or bid competitively on large projects without increasing funding costs.
Modest Free Cash Flow Relative To RevenueAlthough FCF is positive, its modest scale versus revenue and recent volatility reduces the margin of safety. Limited absolute cash generation constrains reinvestment, makes deleveraging slower, and heightens sensitivity to working-capital swings or delayed project payments, elevating medium-term liquidity risk.