Amaero Ltd (ASX:3DA) Is Expected To Breakeven In The Near Future

We feel now is a pretty good time to analyse Amaero Ltd's (ASX:3DA) business as it appears the company may be on the cusp of a considerable accomplishment. Amaero Ltd manufactures and sells powder metals and specialty powders. With the latest financial year loss of AU$18m and a trailing-twelve-month loss of AU$23m, the AU$360m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Amaero's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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Amaero is bordering on breakeven, according to the 3 Australian Machinery analysts. They expect the company to post a final loss in 2026, before turning a profit of AU$11m 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 53% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Amaero's upcoming projects, however, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

View our latest analysis for Amaero

One thing we’d like to point out is that Amaero has no debt on its balance sheet, which is rare for a loss-making 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 too many aspects of Amaero to cover in one brief article, but the key fundamentals for the company can all be found in one place – Amaero's company page on Simply Wall St. We've also put together a list of important aspects you should further research:

1. Historical Track Record: What has Amaero's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Amaero'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.