Norsk Titanium AS' (OB:NTI) Path To Profitability

Norsk Titanium AS (OB:NTI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Norsk Titanium AS, together with its subsidiaries, engages in 3D printing of metal alloys for commercial aerospace, defense, and industrial sectors in Europe and the United States. On 31 December 2024, the kr1.2b market-cap company posted a loss of US$21m for its most recent financial year. The most pressing concern for investors is Norsk Titanium's path to profitability – when will it breakeven? 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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According to the 2 industry analysts covering Norsk Titanium, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$32m in 2026. So, the company is predicted to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 91%, 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 Norsk Titanium's upcoming projects, though, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

View our latest analysis for Norsk Titanium

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 0.2% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

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

1. Valuation: What is Norsk Titanium 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 Norsk Titanium 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 Norsk Titanium’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.