Pinewood Technologies Group (PINE) H1 2025 earnings summary

Executive summary

• Revenue grew 21.7% year-over-year to GBP 19.6 million, driven by customer growth, upselling, and the Seez acquisition.

• Acquisition of Seez in March 2025 enhanced AI capabilities and expanded the customer base, especially in North America and the UK.

• Achieved full ownership of the North America JV and signed a major five-year contract with Lithia, targeting $60 million annual revenue by 2028.

• Major strategic progress includes launching new products, expanding into Japan, Central Europe, South Africa, and opening a North American HQ.

• Integration of Seez technology and team is progressing, with new AI tools operational and further product integration planned.

Financial highlights

• Gross profit rose 17.2% year-over-year to GBP 17 million, with gross margin at 86.7% (down from 90.1% due to Seez acquisition).

• Underlying EBITDA for H1 2025 was GBP 7.9 million, up 14.5% from H1 2024, with a margin of 40.3%.

• Recurring revenue accounted for 85.7% of total, with net customer churn at 0.3%.

• Cash from operations was GBP 8.5 million; end-June 2025 cash position was GBP 30.3 million.

• Underlying profit before tax up 10% to GBP 4.4 million; non-underlying loss before tax of GBP 4.4 million due to JV losses and transaction costs.

Outlook and guidance

• FY 2025 underlying EBITDA expected between GBP 15.5 million and GBP 16 million, reflecting short-term accounting impacts from the North American JV buyout and Marshall implementation delay.

• FY 2028 underlying EBITDA guidance raised to GBP 58 million-GBP 62 million, underpinned by existing contracts and a strong pipeline.

• Lithia Motors contract in North America expected to generate $60 million annual revenue by end of 2028.

• Focus remains on UK implementations, North American rollout, and expansion in Asia, Europe, and Middle East.

• No negative impact expected from the Marshall delay; sufficient resources for all planned implementations.