When Can We Expect A Profit From Norsk Titanium AS (OB:NTI)?

With the business potentially at an important milestone, we thought we'd take a closer look at Norsk Titanium AS' (OB:NTI) future prospects. 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$27m and a trailing-twelve-month loss of US$48m, the kr1.4b market-cap company amplified its loss by moving further away from its breakeven target. 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.

See our latest analysis for Norsk Titanium

Norsk Titanium is bordering on breakeven, according to the 2 Norwegian Aerospace & Defense analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$32m in 2026. Therefore, the company is expected to breakeven roughly 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 66% 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.

Underlying developments driving Norsk Titanium's growth isn’t the focus of this broad overview, though, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 13% 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:

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 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.