Weak Cash GenerationNegative and volatile operating and free cash flow increases reliance on external funding and customer advances to finance construction. For a developer, this can delay project completions, raise financing costs, and constrain the pace of new project starts over the medium term.
Sizeable Absolute DebtDespite improved leverage ratios, the large absolute debt stock means ongoing interest and principal commitments. In a capital-intensive industry, this limits balance-sheet nimbleness, raises sensitivity to interest rate moves, and can crowd out discretionary investments or dividend capacity.
Margin Volatility / Project Mix RiskVolatile gross margins reflect project timing, product mix and recognition differences typical in development cycles. That variability complicates forecasting, increases execution risk on new projects, and can materially swing profitability across reporting periods, challenging steady cash conversion.