With the business potentially at an important milestone, we thought we'd take a closer look at FREYR Battery, Inc.'s (NYSE:FREY) future prospects. FREYR Battery, Inc. provides battery solutions in the United States, Norway, and internationally. With the latest financial year loss of US$72m and a trailing-twelve-month loss of US$107m, the US$254m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which FREYR Battery 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.

According to some industry analysts covering FREYR Battery, breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$19m in 2025. 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 112%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won't go into details of FREYR Battery's upcoming projects, but, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we'd like to point out is that FREYR Battery 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:

There are key fundamentals of FREYR Battery 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 FREYR Battery, take a look at FREYR Battery's company page on Simply Wall St. We've also put together a list of important factors you should further examine:

1. Historical Track Record: What has FREYR Battery'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 FREYR Battery'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.