Norsk Titanium AS (OB:NTI): When Will It Breakeven?

We feel now is a pretty good time to analyse Norsk Titanium AS' (OB:NTI) business as it appears the company may be on the cusp of a considerable accomplishment. Norsk Titanium AS, together with its subsidiary Norsk Titanium US Inc., engages in 3D printing of metal alloys for commercial aerospace, defense, and industrial sectors in Europe and the United States. With the latest financial year loss of US$9.4m and a trailing-twelve-month loss of US$17m, the kr444m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Norsk Titanium 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.

Check out our latest analysis for Norsk Titanium

Expectations from some of the Norwegian Aerospace & Defense analysts is that Norsk Titanium is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$1.1m in 2025. So, the company is predicted to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 112% year-on-year, on average, which is extremely buoyant. 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, but, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that Norsk Titanium has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high 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:

This article is not intended to be a comprehensive analysis on Norsk Titanium, so if you are interested in understanding the company at a deeper level, take a look at Norsk Titanium's company page on Simply Wall St. We've also put together a list of important factors you should look at:

1. Historical Track Record: What has Norsk Titanium'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 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.