After three months of downtime, KTM resumes production – despite a drop in sales in the first half of 2025, equity increased and debt decreased
Positive news from Upper Austria: KTM AG resumed motorcycle production on all four lines at its main plants in Mattighofen and Munderfing on Monday (July 28) as planned. Around 1,000 employees are thus returning to their regular work routine.
After KTM AG and two subsidiaries filed for insolvency in fall 2024, production had to be shut down for three months but was then able to resume.
On April 28, the assembly lines were shut down again due to supply bottlenecks. During the restructuring process, which was successfully completed with financial support from Bajaj, no new commitments could be made to suppliers.
The supply chains have now been fully reactivated, as KTM confirmed in a press release. This means that all production areas can once again operate at full capacity in day shifts on a five-day week.
“The entire KTM team has been eagerly awaiting this moment when production can start again,” says KTM CEO Gottfried Neumeister. “Weeks of intensive preparation and planning are behind us.”
“We would like to take this opportunity to express our special thanks to our employees, who have contributed significantly to making this restart possible with their incredible commitment, flexibility, and solidarity over the past months.”
“We are delighted to be able to get back to full speed today – both as an employer for our colleagues and as a reliable partner for our dealers and suppliers.” Parallel to the resumption of operations, KTM is also intensifying its recruitment efforts.
Preliminary results for the first half of 2025
Compared to the first half of 2024, the number of employees was reduced by 28.6 percent from 6,024 to 4,303. On July 25, Pierer Mobility AG published its preliminary financial figures for the first half of 2025.
Compared to the first half of 2024, total group sales fell from 147,496 to 85,284 motorcycles, representing a decline of 42.2 percent. The sales trend was reflected in revenue, which fell by 57.8 percent to 425 million euros.
46.5 percent of revenue was generated in Europe, 32.4 percent in North America, and 21.1 percent in other markets. In India, the home market of KTM partner Bajaj Auto, sales rose by more than eight percent compared to the previous year.
End customer demand exceeded expectations with over 100,000 motorcycles sold. The press release therefore emphasizes that this has enabled a significant reduction in inventories. Detailed figures on inventories were not provided.
In the bicycle segment, the Group sold 50,107 bicycles (electric bicycles and bicycles) in the first half of the year. This means that the orderly withdrawal from the bicycle business is progressing significantly faster than planned.
The Husqvarna and GasGas bicycle brands will be sold out by the end of 2025 – all warranty, service, and spare parts deliveries will continue in accordance with the statutory warranty requirements. The Felt brand will be continued.
Despite the sharp decline in sales, Pierer Mobility AG was able to return to profitability. This was made possible by a restructuring gain of 1.187 billion euros. As a result, the most important key figures rose significantly.
Operating profit (EBITDA) was €1.003 billion, operating profit (EBIT) was €931 million, and profit after taxes was €740 million. At the same time, equity returned to positive territory at €533 million, and net debt fell to €756 million – more than halving compared to the previous year.
