Thin Net Margins & Uneven FCFVery slim net margins and volatile free cash flow reduce the buffer against downturns and make internal funding unpredictable. Sharp swings in FCF growth imply working-capital or capex timing risks that can constrain sustained debt reduction and reinvestment plans.
Margin Compression & Input Cost RiskA 3 percentage-point decline in adjusted gross margin and management's warning on supplier and wage inflation signal persistent margin pressure. If competitive pricing prevents full pass-through, profitability and long-term margin sustainability will be challenged.
Operational Disruptions And Productivity VariabilityProject delays, weather interruptions and pockets of lower productivity create recurring operational volatility. For a contract‑drilling business, such variability reduces revenue predictability, raises mobilization/idle costs and can materially dent margins across reporting periods.