Service UnderperformanceA meaningful decline in Service revenue weakens the recurring revenue base and pressurizes high‑margin aftermarket earnings. Recovery is ongoing but incomplete; prolonged underperformance would reduce margin stability, increase reliance on one‑time project revenue and raise execution risk on long‑term service economics.
Offshore Ramp‑up CostsScaling offshore capabilities is capital and execution intensive. Ramp costs, higher depreciation and initial inefficiencies can persist across quarters, compressing margins and requiring sustained volume and execution improvements to realize expected returns and justify increased fixed investments.
Cash Flow Volatility And Sizeable Absolute DebtAlthough cash generation recovered from 2022, a sharp FCF decline and meaningful absolute debt leave less buffer against project delays or margin setbacks. Intermittent working‑capital swings and warranty episodes raise the risk that liquidity and deleveraging plans will be tested if revenue or margins soften.