With the business potentially at an important milestone, we thought we'd take a closer look at Eos Energy Enterprises, Inc.'s (NASDAQ:EOSE) future prospects. Eos Energy Enterprises, Inc. designs, manufactures, and markets zinc-based energy storage solutions for utility, commercial and industrial, and microgrid markets in the United States. The US$240m market-cap company posted a loss in its most recent financial year of US$230m and a latest trailing-twelve-month loss of US$331m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Eos Energy Enterprises 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.

See our latest analysis for Eos Energy Enterprises

Consensus from 7 of the American Electrical analysts is that Eos Energy Enterprises is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$37m in 2025. The company is therefore projected to breakeven around 2 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 80% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Eos Energy Enterprises given that this is a high-level summary, though, bear in mind that by and large 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 issue worth mentioning. Eos Energy Enterprises 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. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

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

1. Valuation: What is Eos Energy Enterprises 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 Eos Energy Enterprises 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 Eos Energy Enterprises'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.