Pinewood Technologies Group (PINE) H2 2025 earnings summary

Executive summary

• Revenue grew 30% year-over-year to GBP 40.5 million, driven by new customers, upselling, and the Seez acquisition.

• Major milestones included the buyout of Lithia's share in the North American JV, a $60 million contract with Lithia, and strong progress in OEM integrations and international expansion.

• Integration of Seez enhanced AI capabilities and diversified revenue streams, with rollout of Seez chatbots underway.

• Strategic expansion in North America, U.K., Japan, Central Europe, and South Africa, with Lookers implementation underway and Marshalls to start H2 2026.

• Customer retention remained high with minimal net customer churn of 2.5% in FY25.

Financial highlights

• Revenue reached GBP 40.5 million, up 30% year-over-year; gross profit rose 23% to GBP 34.7 million.

• Gross margin declined to 85.7% from 90.4% year-over-year, mainly due to Seez's lower margins.

• Underlying EBITDA increased 17.1% to GBP 16.4 million; recurring revenue comprised 83.2% of total.

• Net customer churn was 2.5%, up from 1.1% in FY24, but still low.

• Total contract value reached GBP 64.5 million, up 1.4% year-over-year.

Outlook and guidance

• FY 2028 underlying EBITDA guidance remains GBP 58 million–GBP 62 million, with 85% of projected growth covered by signed contracts.

• FY 2026 underlying EBITDA expected to align with consensus of GBP 21.3 million, supported by strong contract visibility and a robust pipeline.

• Majority of FY 2028 EBITDA target covered by current customers and signed contracts.