KTM is seeking at least 100 million euros in investment for 2025.

At the EICMA 2024, hardly any stand was as crowded as the vast area of Pierer Mobility, which, in addition to its orange centerpiece, also showcased new models from MV Agusta, Husqvarna, and GasGas. Full of anticipation for the KTM innovations 2025, thousands of visitors strolled through the stand and were not disappointed: The models ranging from 125 to 1390 cc were plentiful - see the photo gallery. Should we still be concerned about the volume manufacturer from Austria?

By the end of the first half of 2024, KTM AG generated more than 95% of the total revenue of PIERER Mobility AG. Despite this economic strength, an additional financing need has arisen due to a revised liquidity plan for the 2025 fiscal year. To meet this need, the company plans a bridge financing in the amount of a three-digit million sum. Negotiations are currently underway, involving discussions with the core shareholder Pierer Bajaj AG as well as other financial creditors of KTM AG.

The parties involved are keen to agree on a standstill agreement during the ongoing negotiations. This agreement would create a stable framework for the duration of the financing negotiations and provide KTM AG with the necessary financial leeway to initiate operational measures.

The reduction of the board of Pierer Mobility was just the first step in a larger planned restructuring. This aims to place KTM on a solid operational and financial foundation. In light of the currently challenging economic environment, the company management plans a significant reduction in production volumes. This step is necessary to bring inventory levels to an economically sustainable level—both at the level of KTM AG itself and among dealers. Actions like the "gifted" VAT are the first publicly visible signs of implementing these measures.

Such a realignment is intended not only to reduce storage costs but also to streamline the entire operational structure. This measure will be accompanied by a reduction in the so-called overhead area—i.e., the general costs—thereby bringing the company back to a stable and long-term profitable level.

For the upcoming fiscal year 2025, PIERER Mobility AG aims to keep costs and sales stable at a resized level. This means that the company wants to enter a phase of stability that ensures sustainably positive results. This approach is intended to secure the long-term competitiveness and profitability of KTM AG—particularly through targeted management of production volumes and a lean operating model.

Security, how things will proceed concretely at KTM and whether more jobs are at risk following the job cuts at the beginning of the year, is currently still unclear. The company plans to announce further details on the restructuring and contractual agreements at a later date. This will be significant for investors and market participants who are eager to see the company's further development, and also crucial for determining which motorcycles we will be allowed to ride in the years 2026 and 2027.