Metal Powder Works Limited's (ASX:MPW) Shift From Loss To Profit

We feel now is a pretty good time to analyse Metal Powder Works Limited's (ASX:MPW) business as it appears the company may be on the cusp of a considerable accomplishment. Metal Powder Works Limited produces metal powders for additive manufacturing and other advanced applications. On 30 June 2025, the AU$280m market-cap company posted a loss of AU$6.2m for its most recent financial year. The most pressing concern for investors is Metal Powder Works' path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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Metal Powder Works is bordering on breakeven, according to some Australian Machinery analysts. They expect the company to post a final loss in 2027, before turning a profit of AU$3.1m in 2028. The company is therefore projected to breakeven around 3 years from today. 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 71% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Metal Powder Works given that this is a high-level summary, though, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Check out our latest analysis for Metal Powder Works

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 7.8% 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 key fundamentals of Metal Powder Works which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Metal Powder Works, take a look at Metal Powder Works' company page on Simply Wall St. We've also compiled a list of important factors you should look at:

1. Valuation: What is Metal Powder Works 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 Metal Powder Works 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 Metal Powder Works’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.