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Highlights

  • Two brokers assign “Buy” ratings to Pinewood Technologies.

  • PINE's revenue rises 21.7% to £19.6m in H1 FY25.

  • FY28 underlying EBITDA guidance set at £58–62m.

Pinewood Technologies Group PLC (LSE:PINE), a leading cloud-based software provider for the automotive sector, has received notable recognition from analysts, with two brokers assigning “Buy” ratings. 

Financial Performance

For the six months ended 30 June 2025, Pinewood Technologies reported revenue of £19.6m, up 21.7% from £16.1m in the same period last year. Recurring revenue contributed £16.8m, representing 85.7% of total revenue. Gross profit rose 17.2% to £17.0m, delivering a gross margin of 86.7%. Underlying EBITDA reached £7.9m, up 14.5%, with a margin of 40.3%. Underlying profit before tax increased 10% to £4.4m, while cash balances increased to £30.3m from £13.0m a year earlier, reflecting significant cash conversion and proceeds from an oversubscribed equity placement.

Strategic Initiatives

The period marked significant operational milestones. The acquisition of Seez, a market-leading AI automotive software company, expanded Pinewood’s AI capabilities and product suite. Full ownership of Pinewood North America LLC positions the company to scale Pinewood.AI’s presence in the North American market. Notably, a five-year contract with Volkswagen Group Japan was secured to implement Pinewood.AI solutions across approximately 350 Volkswagen and Audi dealerships.

The company also extended its North American operations, successfully installing systems in Porsche dealerships in Canada and preparing for a wider rollout with Lithia US stores starting mid-FY26. Pinewood opened a North American headquarters in Florida.

Post-Period Updates

Pinewood has continued its growth trajectory post-June 2025. The company completed the acquisition of Lithia’s 51% stake in Pinewood North America LLC and secured key customer contracts from its South African reseller, expected to add £0.5–0.7m to annual EBITDA. The implementation of the platform in Lookers’ dealerships is underway, and plans to expand in Japan with Porsche Centres are progressing.

Outlook and Guidance

Looking ahead, Pinewood Technologies aims to implement systems with additional top-tier UK dealer groups while pursuing international opportunities in North America, Central Europe, Japan, Southeast Asia, South Africa, and the Middle East. The company has updated FY25 underlying EBITDA guidance to £15.5–16.0m following the buyout of North American operations and delayed Marshall Motor Group implementation. For FY28, Pinewood targets underlying EBITDA of £58–62m, supported by existing contracts and a pipeline of opportunities.

Analayst Rating

PINE has received positive recommendations from analysts, with both Berenberg and Jefferies assigning "Buy" ratings to the stock. Specifically, Berenberg Bank, through analyst Alex Short, issued a "Buy" rating , and Jefferies, with analyst Andrew A. Wade, provided a "BUY" rating. These ratings reflect a bullish outlook on the company's prospects, with Berenberg setting a price target of GBP 700, suggesting a significant upside of 55.56% from the current price.