Helios Towers plc (LON:HTWS) Is Expected To Breakeven In The Near Future

Helios Towers plc (LON:HTWS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Helios Towers plc, an independent tower company, acquires, builds, and operates telecommunications towers and passive infrastructure. The UK£1.1b market-cap company announced a latest loss of US$100m on 31 December 2023 for its most recent financial year result. The most pressing concern for investors is Helios Towers' 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 Helios Towers

According to the 5 industry analysts covering Helios Towers, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$56m in 2025. Therefore, the company is expected to breakeven just over a year from now. 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 63% 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.

Given this is a high-level overview, we won’t go into details of Helios Towers' upcoming projects, though, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with Helios Towers is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

This article is not intended to be a comprehensive analysis on Helios Towers, so if you are interested in understanding the company at a deeper level, take a look at Helios Towers' company page on Simply Wall St. We've also compiled a list of essential factors you should further examine:

1. Valuation: What is Helios Towers 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 Helios Towers 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 Helios Towers’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.