Pinewood has announced an upgrade in its earnings guidance and detailed its strategic US expansion plans.
- The company has increased its projected EBITDA for FY27 from £27m to £30m.
- Pinewood has rebranded to Pinewood.AI amidst its global growth ambitions.
- A joint venture with Lithia Motors aims to facilitate Pinewood’s US market entry.
- Shares of Pinewood saw a 1.4% increase following recent developments.
Pinewood has revised its earnings expectations, projecting an increase in its underlying EBITDA to £30m for the fiscal year 2027, up from the previously anticipated £27m. This change reflects the company’s optimism and strategic preparations for substantial growth.
Amid its ambitious expansion plans, Pinewood has rebranded to Pinewood.AI. This move is part of its comprehensive strategy unveiled at a recent capital markets event. The company, which was formerly known as Pendragon, aims to strengthen its market position and expand its reach on a global scale.
In its efforts to penetrate the challenging US market, Pinewood has formed a strategic alliance with Lithia Motors, a dealership group listed on the New York Stock Exchange. Lithia Motors acquired Pendragon’s dealership groups in February 2024, leading to Pinewood’s transformation into a pure software-as-a-service (SaaS) enterprise. This partnership is designed to integrate Pinewood’s software into Lithia’s systems and promote its adoption among other dealership competitors.
Bill Berman, CEO of Pinewood, highlighted the importance of this joint venture, noting that breaking into the US market requires significant local partnerships. Berman emphasised, “The tech is great and the tech would work with or without having a partnership with Lithia. The challenge is if you don’t have an anchor tenant, it’s like building a big building — it’s much better to have half the floors leased out before you build it.” Without such a partnership, Pinewood would face a long, arduous process to establish itself in the US.
Following these announcements, Pinewood’s market performance reflected investor confidence, with the company’s share price rising by 1.4% to 340p. This increase follows a broader uptick of over 13% over the past week, buoyed by a new five-year contract with Marshall Motor Group.
Pinewood’s strategic moves and partnership with Lithia Motors mark a significant step towards its US market ambitions and improved financial outlook.
