KTM Restructuring Pays Off: Bajaj Mobility AG Publishes 2025 Annual Report

• 2025 revenue: 1.009 billion euros from 209,704 motorcycles sold
• Restructuring gain of 1.193 billion euros drives the result
• Net debt nearly halved from 1.643 billion to 798 million euros
• New 550-million-euro credit facility from international banking consortium secures growth phase

The 2025 fiscal year of Bajaj Mobility AG, formerly PIERER Mobility AG, was a year of extreme contrasts. On one side stands a 46 percent revenue decline compared to the previous year and a sales drop of around 28 percent. On the other side stands a net profit of 590 million euros, nearly halved debt, and the most successful motorsport year in the company’s history. The key to this apparent contradiction lies in the completed restructuring of subsidiary KTM AG, which shaped the entire year significantly.

Half a Year at a Standstill, Half a Year in Recovery

The first half of 2025 was a phase of deliberate restraint for the group headquartered in Mattighofen. Restructuring measures and a temporary production halt pushed sales figures massively downward. In the first six months, only 50,334 motorcycles were sold through the company’s own channels, supplemented by 34,950 units through strategic partner Bajaj Auto. In February 2025, creditors had accepted KTM AG’s restructuring plan, which provided for a cash quota of 30 percent, payable by May 23, 2025. Bajaj Auto provided the necessary financing and effectively took control of the Austrian motorcycle manufacturer.

In summer, production resumed on all four Austrian assembly lines, and the turnaround became noticeable. In the second half of 2025, the group sold 80,464 motorcycles, representing an increase of around 60 percent compared to the first half. In total, Bajaj Mobility AG sold exactly 209,704 motorcycles in fiscal year 2025, a decline of 28.3 percent compared to the previous year, when revenue had still reached 1.88 billion euros.

Restructuring Gain Dominates the Result

The impressive earnings figures at first glance require context. EBITDA stood at 874 million euros, EBIT at 748 million euros, and net profit at 590 million euros. In the previous year, the group had reported a loss of 1.08 billion euros, with EBITDA at minus 481 million euros. The turnaround is largely attributable to a restructuring gain of 1.193 billion euros. This results from the completed restructuring proceedings of KTM AG, KTM Components GmbH, and KTM Forschungs und Entwicklungs GmbH, in which creditors waived a large portion of their claims. Without this one-time effect, the operating result would have been significantly lower.

The balance sheet structure, however, developed positively regardless of special effects. Net debt fell from 1.643 billion euros to 798 million euros. Equity returned to positive territory at 385 million euros by year-end, with the equity ratio rising to 24.3 percent. Inventory was reduced by 101,153 vehicles, from 248,580 units at the end of 2024 to 147,427 units at the end of 2025.

New Ownership Structure and Refinancing

In November 2025, the renaming from PIERER Mobility AG to Bajaj Mobility AG was completed after Bajaj Auto B.V. had become the sole owner of Pierer Bajaj AG. The Indian conglomerate Bajaj Auto Ltd., self-described as the world’s most valuable two- and three-wheeler company, has since been steering the fortunes of KTM, Husqvarna Motorcycles, and GASGAS.

A central pillar of the financial repositioning was the refinancing of KTM AG. An international banking consortium consisting of J.P. Morgan SE, HSBC, DBS Bank Limited, and MUFG Bank Ltd. granted an unsecured credit facility of 550 million euros with a five-year term. This replaces the existing, significantly higher-interest loan from Bajaj Auto of 450 million euros. Additionally, KTM AG secured a factoring facility of 150 million euros and a working capital facility of 50 million euros. CFO Petra Preining commented: “2025 was a year of intensive financial reorganization. Through consistent inventory reduction, a focus on a sustainable cost structure and successful refinancing measures, we have clearly strengthened our financial base. We have created the conditions for a more profitable 2026.”

Radical Group Restructuring: Focus on Core Business

As part of the strategic realignment, the group divested several business areas that do not belong to the core business. KTM’s Sportcar and X-Bow activities were sold off, as was the stake in MV Agusta and the entire bicycle segment. Bajaj Mobility AG will focus exclusively on the premium motorcycle business going forward with the brands KTM, Husqvarna Motorcycles, and GASGAS, as well as component specialist WP.

The restructuring also had personnel consequences. The workforce shrank from 5,310 employees at the end of 2024 to 3,782. As part of the holding-level reorganization, Stephan Reiff assumed the newly created position of Chief Commercial Officer on April 1, 2026. The board consists of CEO Gottfried Neumeister and CFO Petra Preining, as well as Verena Schneglberger-Grossmann, who is responsible for human resources and legal affairs.

29 Titles: Motorsport Record Despite Crisis

Despite all economic turbulence, the group experienced its most successful motorsport year ever in 2025. A total of 29 championship titles were won with the three brands KTM, Husqvarna Motorcycles, and GASGAS, including 17 rider championships and 12 FIM manufacturer titles.

The success continues seamlessly into 2026. Luciano Benavides won the 2026 Dakar Rally for Red Bull KTM Factory Racing, Billy Bolt secured the 2026 SuperEnduro World Championship for Husqvarna Factory Racing, and Eli Tomac is fighting for the title in the AMA Supercross Championship. In MotoGP, where KTM’s withdrawal had been speculated about, the brand proved to be one of the most competitive. Pedro Acosta sits third in the riders’ standings after the first two races of the 2026 season.

2026 Outlook: New Models, Growing Sales, and Open Risks

For the current fiscal year, Bajaj Mobility AG is targeting a significant increase in revenue, sales, and cash flow. The focus remains on cost reduction, leaner structures, and targeted management of the product and project portfolio. Key new models for 2026 include the KTM 990 RC R, the KTM 1390 Super Adventure S Evo, new LC4 models, and updated Husqvarna 701 models. Additionally, the manufacturer warranty was extended to four years, valid for the first time for all road-legal KTM and Husqvarna models from model year 2025 onward.

CEO Gottfried Neumeister expressed confidence: “We have made an outstanding start to 2026. It is particularly encouraging that our new models are being received very positively by our customers. As of today, we have already sold more than twice as many motorcycles as in the first quarter of the previous year.”

At the same time, management pointed to geopolitical uncertainties and their potentially negative effects, which are being continuously monitored. Whether the ambitious targets for 2026 can actually be achieved remains to be seen given the still-tense global conditions. While KTM’s restructuring is complete on paper, the actual proof of economic viability still needs to be delivered in day-to-day operations.

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