Pierer Mobility: KTM restructuring brings billions in profits – focus on motorcycles, bicycles discontinued

Despite the positive balance sheet figures, operating business fell significantly short of the previous year’s level. Consolidated sales slumped by 57.8 percent to €425 million (approx. US$464 million) in a half-year comparison – a direct consequence of the six-month production stoppage in Austria and a strategically curtailed delivery of new models. Due to the restructuring effect, EBITDA stands at €1.003 billion and EBIT at €930 million. The net income for the period amounts to €739 million.

Reason for the billion-euro profit: restructuring of the KTM Group

The main reason for the positive result is the successful restructuring of KTM AG and two subsidiaries under insolvency law. The agreed quota of 30 percent was fully met, which mathematically led to a restructuring profit of 70 percent of the recognized claims – corresponding to the aforementioned €1.187 billion. This not only brought equity back into positive territory, but also significantly reduced net debt: from €1.643 billion at the end of 2024 to €756 million as of June 30, 2025 – a decline of 54 percent.

A loan from Bajaj Auto International Holdings BV in the amount of €450 million and a shareholder loan from Pierer Bajaj AG in the amount of €350 million also contributed to financial stabilization. At the same time, global inventory reduction freed up approximately €166 million in liquidity.

Production is back on track – focus on operational turnaround

After the forced break due to limited liquidity and strategic decisions to increase efficiency, motorcycle production at KTM in Austria resumed on all four production lines at the end of July 2025. The temporary production stoppage was part of the restructuring plan and helped to reduce inventories and conserve capital. The number of employees fell by around 1,721 year-on-year to 4,303 – in addition, the sale of MV Agusta reduced the workforce by around 220.

Despite the production stoppage, dealers worldwide recorded encouraging sales figures: over 100,000 motorcycles were delivered to end customers. A total of 85,284 vehicles were sold, 34,950 of which were sold through partner Bajaj Auto – an increase of 8 percent over the previous year in this area. Strong demand, particularly in India, underscores the importance of the strategic partnership with Bajaj.

Motorcycle business remains core – bicycle business to be discontinued

The realignment of Pierer Mobility AG will focus exclusively on the motorcycle business in the future. The bicycle segment – including the e-bike brands Husqvarna and GasGas – will be completely discontinued. Sales are expected to be completed by the end of 2025. In the first half of 2025, bicycle sales still stood at 50,107 units, including 44,860 e-bikes – an increase of 55.9 percent compared to the previous year. Nevertheless, external sales in the bicycle segment declined by 24.4 percent to 52 million euros. Operating losses were reduced with EBITDA and EBIT both at minus €11 million, but remain negative.

The stakes in MV Agusta and the KTM X-BOW super sports car project will also be sold. The MV Agusta shares were already sold in July. A binding sales agreement has been signed for KTM X-BOW.

Outlook: Hope for operational recovery from 2026 onwards

The Management Board of Pierer Mobility AG expects revenue for 2025 as a whole to be significantly below the previous year’s level. Production is also expected to remain reduced in 2026 in order to further relieve dealer inventories. The complete restoration of supply chains is considered a key challenge. At the same time, efficiency measures already initiated are expected to take effect in the following years.

The target is to achieve positive operating EBITDA in 2026, while EBIT is not expected to return to positive figures until 2027. Thanks to investments made, the Group considers itself well positioned in terms of production capacity for the coming years. At the same time, the investment volume is to be reduced until sustainable profitability is achieved, without jeopardizing the substance of the company.

Conclusion

Pierer Mobility AG’s half-year results primarily reflect the successful restructuring process of the KTM Group. Despite the visually strong balance sheet figures, the operating business remains under pressure. The focus is now clearly on the motorcycle segment, while loss-making peripheral areas are being abandoned. The coming years will show whether the turnaround can also be realized beyond the accounting books.