When Will Invinity Energy Systems plc (LON:IES) Become Profitable?

We feel now is a pretty good time to analyse Invinity Energy Systems plc's (LON:IES) business as it appears the company may be on the cusp of a considerable accomplishment. Invinity Energy Systems plc manufactures and sells vanadium flow batteries (VFB) for energy storage requirements of business, industry, and electrical networks. The UK£48m market-cap company posted a loss in its most recent financial year of UK£23m and a latest trailing-twelve-month loss of UK£21m shrinking the gap between loss and breakeven. The most pressing concern for investors is Invinity Energy Systems' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Invinity Energy Systems

According to the 3 industry analysts covering Invinity Energy Systems, the consensus is that breakeven is near. They expect the company to post a final loss in 2026, before turning a profit of UK£13m in 2027. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 61% year-on-year, on average, which signals high confidence from analysts. 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 Invinity Energy Systems' upcoming projects, though, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that Invinity Energy Systems 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. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Invinity Energy Systems to cover in one brief article, but the key fundamentals for the company can all be found in one place – Invinity Energy Systems' company page on Simply Wall St. We've also compiled a list of key aspects you should further research:

1. Historical Track Record: What has Invinity Energy Systems' 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 Invinity Energy Systems' 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.