Loss-Making ADS-TEC Energy PLC (NASDAQ:ADSE) Set To Breakeven

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With the business potentially at an important milestone, we thought we'd take a closer look at ADS-TEC Energy PLC's (NASDAQ:ADSE) future prospects. ADS-TEC Energy PLC engages in the provision of intelligent and decentralized energy storage systems in Europe and North America. The US$635m market-cap company announced a latest loss of €98m on 31 December 2024 for its most recent financial year result. Many investors are wondering about the rate at which ADS-TEC Energy will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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According to the 2 industry analysts covering ADS-TEC Energy, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of €500k in 2025. So, the company is predicted to breakeven approximately a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 149% is expected, which is rather optimistic! 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 ADS-TEC Energy's upcoming projects, though, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

See our latest analysis for ADS-TEC Energy

Before we wrap up, there’s one issue worth mentioning. ADS-TEC Energy currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. 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 ADS-TEC Energy, so if you are interested in understanding the company at a deeper level, take a look at ADS-TEC Energy's company page on Simply Wall St. We've also put together a list of relevant factors you should further research:

1. Historical Track Record: What has ADS-TEC Energy'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 ADS-TEC Energy'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.