Defence-industrial programmes run on calendars measured in years. Cashflow literacy means matching when costs hit to when milestones actually pay — not just the headline contract value.
Front-loaded mobilisation, long-lead buys, waiting on quality gates, and cross-border documentary cycles. A profitable job can still stress liquidity for months.
Contract structures vary. This is pattern literacy, not a negotiation script or investment recommendation.
Progress payments can reduce cash strain when milestones are clear and approved on time. Delivery-heavy or inspection-gated structures can leave suppliers funding a long WIP curve before cash lands.
Long leads, rework after inspection, delayed milestone sign-off, retention, and FX timing on cross-border invoices all stretch cash — even when the eventual margin looks fine on paper.