Pinewood Technologies Shares Drop as Profit Outlook Falls Short

Pinewood Technologies Group PLC (LSE:PINE) saw its shares slide 5.9% on Wednesday after the automotive software provider lowered its full-year profit forecast, even amid robust revenue growth in the first half of 2025.

The cloud-based solutions firm, which specializes in retail software for the automotive sector, posted revenue of £19.6 million for the six months ended June 30, up 21.7% from £16.1 million a year earlier. Recurring revenue reached £16.8 million, making up 85.7% of the total.

Despite these gains, Pinewood now anticipates FY25 underlying EBITDA of £15.5-16.0 million, falling short of prior market expectations. The company attributed the revision to a £1.3 million short-term accounting effect linked to its buyout of Lithia’s stake in Pinewood North America LLC, along with delays in deploying its system at Marshall Motor Group.

“This has been another half of great progress for Pinewood.AI, delivering on our strategic objectives and positioning the business for continued accelerated growth,” said Bill Berman, Chief Executive Officer.

“Taking full ownership of Pinewood North America LLC and the contract signed with Lithia marked major achievements in our growth strategy for this key market.”

During the period, the company executed several strategic initiatives, including acquiring Seez to enhance its AI capabilities and assuming full control of Pinewood North America LLC to support expansion in the North American market.

Looking forward, Pinewood unveiled a medium-term target of £58-62 million underlying EBITDA for FY28, supported by strong visibility from existing contracts and a substantial pipeline of growth opportunities.

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