PIERER Mobility AG paid for the two production stoppages that occurred in the first half of the year. Revenues declined 57.8 percent year-on-year, and only 85,284 motorcycles were sold to dealers.
Business performance in the first half of 2025
The first half year of business for the PIERER Mobility Group 2025 was marked by the restructuring proceedings within the KTM Group, which have now been successfully completed. These proceedings had a significant impact on all aspects of the Group.
As previously reported KTM AG and two of its subsidiaries successfully completed the insolvency restructuring proceedings in June 2025. The affected KTM companies deposited the agreed-upon quota of 30% of the recognized claims with the restructuring administrators on time. The majority of the payments had already been made by the restructuring administrators as of the balance sheet date of June 30, 2025.
The successful completion of the restructuring proceedings generated a restructuring profit of 70% of the registered creditor claims, or € 1,187 million, in the first half year of 2025.
Turnaround journey commences
Although the restructuring process has been successfully completed from a legal perspective, it will continue within the Group. To put the Group on a sustainable path back to success, it is focusing on its motorcycle business; the bicycle business is being wound down.
The sale of the majority stake in MV Agusta was completed on July 9, 2025. Consequently, the shares in the company are still classified as "held for sale" at the end of the first half of the year. In early June, a term sheet was signed to sell the KTM X-BOW business to an international investor group. In the meantime, a corresponding binding sales agreement has also been signed.
Production resumed at the end of July 2025
Production in Austria had been suspended for most of the first half of the year due to limited liquidity during the restructuring proceedings and problems with the supply chains. Temporary reductions in working hours and compensation allowed for the retention of valuable employees while personnel expenses were reduced as much as possible. However, halting production was also a central component of the restructuring plan to reduce global inventories. At the end of July 2025, KTM AG resumed production on all four lines in Austria.
The PIERER Mobility Group's revenue decreased by 57.8% year-over-year, reaching € 425 million. Of this revenue, 46.5% was generated in Europe, 32.4% in North America and 21.1% in other markets.
The restructuring profit led to positive earnings figures. EBITDA reached € 1,003 million, EBIT € 930 million, and the profit for the period amounted to € 739 million.
Due to the restructuring profit, equity amounted to € 532 million as of June 30, 2025, and is positive again with an equity ratio of 27%. Compared to the previous year, net debt more than halved after the restructuring quota was fulfilled and now stands at € 756 million (December 31, 2024: € 1,643 million).
The primary sources of financing in H1 2025 were a € 450 million restructuring loan granted by Bajaj Auto International Holdings BV and a € 350 million shareholder loan from Pierer Bajaj AG.
In connection with the restructuring and reorganization activities, the Group's headcount decreased by 1,721 during the last twelve months. With the sale of MV Agusta at the beginning of July, the headcount decreased by an additional 220. The Group is now looking to recruit qualified specialists and managers, particularly at its headquarters at Mattighofen in Upper Austria.
Motorcycle segment
The motorcycle segment generated 87% of the PIERER Mobility Group's external revenue and sold 50,334 motorcycles in H1 2025 (previous year: 115,145). Additionally, 34,950 motorcycles were sold through the Group’s Indian strategic partner Bajaj Auto (previous year: 32,351). Sales in India raised by more than 8% compared to the previous year.
Overall, the Group sold 85,284 motorcycles (previous year: 147,496 units). The 42.2% decline in total sales was mainly due to the restructuring proceeding at KTM AG and the two production stoppages. Additionally, the company deliberately held back on delivering and selling new models to allow time for the market to reduce global inventories. The reduced inventory level and the resulting lower capital commitment positively impacted the Group's liquidity.
Together with reduced production output, the Company's own inventories and those of dealers and importers were significantly reduced in H1 2025, and efficiency was increased along the entire supply chain.
External revenue in the motorcycle segment declined by 60.3% year-on-year to € 372 million. Due to the restructuring profit, EBITDA was positive at € 1,038 million, and EBIT was positive at € 966 million.
Bicycle Segment
The bicycle segment generated 12% of the PIERER Mobility Group's external sales. The Group sold 50,107 bicycles (electric bicycles and bio bicycles) in H1 2025. This means that the wind-down of the electric bicycle business proceeded much faster than planned. The sell-off also positively impacted the Group's liquidity. The Husqvarna and GASGAS bicycle brands will be sold out by the end of 2025.
External revenue in the bicycle segment declined by 24.4% to € 52 million. Operating losses were significantly reduced, with EBITDA and EBIT at € minus 11 million in H1 2025.
Outlook
Based on the results of the first half of the year 2025, the lack of operating performance for six months, the conscious decision to sell fewer motorcycles to dealers, and the ongoing challenging economic environment, the Executive Board expects revenue for the 2025 financial year to be significantly below the level of the previous financial year.
In order to give the market the opportunity to further reduce dealer inventories in financial year 2026, fewer motorcycles will be produced and sold in 2026 than in 2024. At the same time, some of the cost-cutting measures that have been introduced will require more time to implement and take effect. Therefore, EBITDA (earnings before interest, taxes, depreciation, and amortization) for the financial year 2026 is expected to be positive, a positive EBIT (earnings before interest and taxes) will be feasible in the 2027 financial year.
The EBIT of the financial year 2025 will be significantly positive due to the restructuring profit (it amounted to € 1,187 million!) realized. Rebuilding and maintaining strong supplier relationships is crucial for the successful continuation of production and remains challenging. The untimely availability of individual components can disrupt the production ramp-up process at any time. From Mattighofen we hear that the successful completion of the production in Upper Austria until the end of the year is not guaranteed for the time being.
The investments made in recent years have secured the necessary production capacities for the coming years. It is expected that this will enable significantly reduced investments until operational profitability is achieved, without impairing the Group’s substance or future viability.