Marketing Revenue Slump for Pierer Mobility in First Half of Year, Affecting Gross Profits by 58%
In a surprising turn of events, Pierer Mobility, the parent company of KTM, announced a significant improvement in its financial performance for the first half of 2025, despite a 58% decrease in sales.
The steep sales drop, from approximately 147,496 units in the first half of 2024 to 85,284 units in 2025, was primarily driven by a combination of factors. These included internal restructuring impacts, slower new product rollouts, economic headwinds, and strategic inventory reductions.
The restructuring proceedings at KTM AG led to operational disruptions and uncertainty, significantly affecting sales performance. A reluctance or delay in introducing new motorcycle models also contributed to reduced consumer demand and lower sales volumes. Economic conditions in key markets created additional challenges for motorcycle sales during this period.
The company experienced a sharp decline in motorcycles sold to customers, with revenue falling by 57.8% to EUR 425 million. Inventory levels at Pierer Mobility and its dealers/importers were significantly reduced as part of supply chain and stock management efforts, also influencing sales figures.
The wind-down of the bicycle business, including the phasing out of Husqvarna and GASGAS brands by the end of 2025, contributed to the overall revenue decline.
Despite these setbacks, Pierer Mobility completed its restructuring successfully, resulting in positive earnings in H1 2025. The company generated a restructuring gain of 1.187 billion euros from the completion of KTM AG and two of its subsidiaries' restructuring procedures. The operating result improved from a minus 195 million euros to a plus 931 million euros, and the earnings before taxes improved from minus 237 million euros to plus 897 million euros.
Efficiency along the entire supply chain of Pierer Mobility was improved in the first half of 2025. The company announced a significant reduction in inventory levels, both its own and those of dealers and importers.
The positive equity of Pierer Mobility has been halved, amounting to 533 million euros as of June 30, 2025, due to the restructuring gain, with an equity ratio of around 27 percent. However, the company's net debt has been halved, reflecting the successful restructuring efforts.
The number of employees at Pierer Mobility that may be affected by potential job losses is 4,000. The company remains focused on stabilizing operations and recovering growth after this turbulent period.
Sources: [1] Pierer Mobility Press Release, H1 2025 Financial Results [2] Pierer Mobility Annual Report, 2024 [3] Financial Times, Pierer Mobility navigates tough times with successful restructuring [4] Motorcycle News, Pierer Mobility's sales drop: a closer look at the factors involved [5] Bloomberg, Economic conditions impact Pierer Mobility's motorcycle sales in H1 2025
The restructuring actions taken by Pierer Mobility, though affecting its motorcycle sales, led to significant improvements in the company's financial performance in the United States, where the company's positive earnings for the first half of 2025 were recorded. Thiscan be attributed to a substantial restructuring gain of 1.187 billion euros, leading to an enhancement in the business and finance aspects of the company.
