PIERER Mobility AG / KTM first-half 2025 updated f...

PIERER Mobility AG

Outcomes for first-half of 2025

Abstract

• KTM restructuring proceedings efficiently accomplished
  – Restructuring revenue of € 1,187 million
  – Constructive fairness
  – Web debt greater than halved
• Effectivity enchancment program initiated
  – Sale of MV Agusta and KTM X-BOW
  – Wind down the bicycle enterprise by the top of 2025
  – Operational turnaround plan for bikes being developed and put into motion
• Resumption of manufacturing on the finish of July 2025
• Encouraging end-customer demand: sellers offered >100,000 bikes to retail
• € 166 million in liquidity was launched by a discount in stock
• Free money circulation elevated by € 576 million in comparison with final yr

The restructuring proceedings inside the KTM Group have now been efficiently accomplished. These proceedings had a major influence on all facets of the Group.

As beforehand reported on a number of events, KTM AG and two of its subsidiaries efficiently accomplished the insolvency restructuring proceedings in June 2025. The affected KTM firms deposited the agreed-upon quota of 30% of the recognised claims with the restructuring directors on time. The vast majority of the funds had already been made by the restructuring directors as of the steadiness sheet date of June 30, 2025.

The profitable completion of the restructuring proceedings generated a restructuring revenue of 70% of the registered creditor claims, or € 1,187 million, in H1 2025.

Journey of turnaround commences

Though the restructuring course of has been efficiently accomplished from a authorized perspective, it would proceed inside the Group. To place the Group on a sustainable path to success, it’s specializing in its motorbike enterprise; the bicycle enterprise is being wound down.

The sale of the bulk stake in MV Agusta was accomplished on July 9, 2025 (closing). Consequently, the shares within the firm are nonetheless categorized as “held on the market” on the finish of the primary half of the yr. In early June, a time period sheet was signed to promote the KTM X-BOW enterprise to a world investor group. Within the meantime, a corresponding binding gross sales settlement has additionally been signed.

Manufacturing resumed on the finish of July 2025

Manufacturing in Austria had been suspended for many of the first half of the yr because of restricted liquidity in the course of the restructuring proceedings. Short-term reductions in working hours and compensation allowed for the retention of worthwhile staff whereas personnel bills have been lowered as a lot as potential. Nonetheless, halting manufacturing was additionally a central element of the restructuring plan to cut back international inventories.

On the finish of July 2025, KTM AG resumed manufacturing on all 4 traces in Austria.

The PIERER Mobility Group’s income decreased by 57.8% year-over-year, reaching € 425 million. Of this income, 46.5% was generated in Europe, 32.4% in North America and 21.1% in different markets. The restructuring revenue led to constructive earnings figures. EBITDA reached € 1,003 million, EBIT € 930 million, and the revenue for the interval amounted to € 739 million.

As a result of restructuring revenue, fairness amounted to € 532 million as of June 30, 2025, and is constructive once more with an fairness ratio of 27%. In comparison with the earlier yr, web debt greater than halved after the restructuring quota was fulfilled and now stands at € 756 million (December 31, 2024: € 1,643 million). The first sources of financing in H1 2025 have been a € 450 million restructuring mortgage granted by Bajaj Auto Worldwide Holdings BV and a € 350 million shareholder mortgage from Pierer Bajaj AG.

In reference to the restructuring and reorganisation actions, the Group’s headcount decreased by 1,721 within the final twelve months. With the sale of MV Agusta originally of July, the headcount decreased by an extra 220. The Group is now trying to recruit certified specialists and managers, notably at its headquarters in Higher Austria.

Bike Phase

The Bike phase generated 87% of the PIERER Mobility Group’s exterior income.

The PIERER Mobility Group offered 50,334 bikes in H1 2025 (earlier yr: 115,145).

Moreover, 34,950 bikes have been offered by the Group’s strategic companion Bajaj Auto (earlier yr: 32,351).

Gross sales in India have been notably encouraging, rising by greater than 8% in comparison with the earlier yr.

Total, the Group offered 85,284 bikes (earlier yr: 147,496 models). The 42.2% decline in whole gross sales was primarily because of the restructuring continuing at KTM AG and the manufacturing stoppage.

Moreover, the corporate intentionally held again on delivering and promoting new fashions to permit time for the market to cut back international inventories. The lowered stock stage and the ensuing decrease capital dedication positively impacted the Group’s liquidity.

The gross sales figures reported by sellers to finish clients have been encouraging, exceeding the corporate’s personal expectations with greater than 100,000 bikes offered.

Along with lowered manufacturing output, the Firm’s personal inventories and people of sellers and importers have been considerably lowered in H1 2025, and effectivity was elevated alongside all the provide chain.

Exterior income within the motorbike phase declined by 60.3% year-on-year to € 372 million. As a result of restructuring revenue, EBITDA was constructive at € 1,038 million, and EBIT was constructive at € 966 million.

Bicycle Phase

Within the bicycle phase, the Group offered 50,107 bicycles (electrical bicycles and bicycles) in H1 2025. Which means that the wind-down of the electrical bicycle enterprise proceeded a lot sooner and extra efficiently than deliberate. The sale-off additionally positively impacted the Group’s liquidity. The Husqvarna and GASGAS bicycle manufacturers shall be offered out by the top of 2025.

Exterior income within the bicycle phase declined by 24.4% to € 52 million. Working losses have been considerably lowered, with EBITDA and EBIT at € -11 million in H1 2025.

Outlook

Based mostly on the outcomes of the primary half of the yr 2025, the dearth of working efficiency for six months, the acutely aware resolution to promote fewer bikes to sellers, and the continued difficult financial setting, the Govt Board expects income for the 2025 monetary yr to be considerably under the extent of the earlier monetary yr.

In an effort to give the market the chance to additional cut back vendor inventories in monetary yr 2026, fewer bikes shall be produced and offered in 2026 than in 2024.

On the similar time, a few of the cost-cutting measures which have been launched would require extra time to implement and take impact.

Due to this fact, EBITDA for monetary yr 2026 is anticipated to be constructive; a constructive EBIT shall be possible within the 2027 monetary yr. The EBIT of the monetary yr 2025 shall be considerably constructive because of the restructuring revenue realised.

Rebuilding and sustaining sturdy provider relationships is essential for the profitable continuation of manufacturing and stays difficult. The premature availability of particular person elements can disrupt the manufacturing ramp-up course of at any time.

The investments made lately have secured the required manufacturing capacities for the approaching years. It’s anticipated that this may allow considerably lowered investments till operational profitability is achieved, with out impairing the Group’s substance or future viability.

Key figures for H1 2025 of the PIERER Mobility Group