When Will Amaero International Ltd (ASX:3DA) Turn A Profit?

Amaero International Ltd (ASX:3DA) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Amaero International Ltd engages in the research, development, manufacture, and sale of refractory metals and specialty alloy powders in the United States. The AU$163m market-cap company posted a loss in its most recent financial year of AU$18m and a latest trailing-twelve-month loss of AU$23m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Amaero International will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Amaero International is bordering on breakeven, according to the 2 Australian Machinery analysts. They expect the company to post a final loss in 2026, before turning a profit of AU$16m in 2027. The company is therefore projected to breakeven around 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 66% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Amaero International's growth isn’t the focus of this broad overview, but, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Check out our latest analysis for Amaero International

Before we wrap up, there’s one aspect worth mentioning. Amaero International currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of Amaero International which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Amaero International, take a look at Amaero International's company page on Simply Wall St. We've also put together a list of pertinent factors you should further examine:

1. Valuation: What is Amaero International worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Amaero International is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Amaero International’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.