KTM will fight for its future as it undergoes legal restructuring

KTM has acknowledged it is facing “significant hurdles” as it prepares to apply for a legal restructuring under self-administration. The company needs bridge financing in the “high three-digit million” range, but management does not expect to secure this amount in time.

Instead, KTM plans to develop a reorganization plan independently in collaboration with its creditors, aiming to address its financial challenges and ensure a “robust” future. By choosing self-administration, the company can avoid the need for an external administrator.

PIERER Mobility AG, KTM’s parent company, confirmed on its investor website that the restructuring will lead to a reduction in operating performance at its Austrian sites, totalling over EUR 1 billion in 2025 and 2026. The company also warned of “additional potential losses” due to the restructuring, as well as a negative annual net result in the “very high three-digit million” range for 2024.

The restructuring affects KTM AG and its subsidiaries KTM Components GmbH and KTM F&E GmbH. However, according to PIERER Mobility AG, “all other subsidiaries of KTM AG, particularly the sales companies, are not affected.”

A challenging economic climate is the reason for KTM's struggles, with a large amount of excess stock in dealerships around the world. This is due to an overestimation of the size of the market rather than a lack of desire for its products. To combat the situation, KTM has cut its executive board to just two people, while a significant reduction in staff and production numbers is also expected.

Despite the difficult financial outlook, KTM is determined to fight for its future.

“Over the past three decades, we have grown to become Europe’s largest motorcycle manufacturer,” said KTM AG CEO Stefan Pierer in a statement. “We inspire millions of motorcycle riders around the world with our products. Now we are taking a pit stop for the future. The KTM brand is my life’s work, and I will fight for it.”

In September 2024, the company appointed Gottfried Neumeister as Co-CEO of KTM AG. Pierer praised Neumeister’s “impressive experience” and credited him with contributing significantly to addressing the company’s current challenges.

“We build motorcycles reliably and robustly for every race, for every terrain,” said Neumeister. “Now it’s about making the company robust—robust for the future—so that we can quickly refocus on what we do best.”

A strong showing at EICMA in Milan further highlighted that KTM is not backing down. The Austrian brand unveiled a range of new models, including the 1390 Super Adventure S, 990 Duke R, 1390 Super Duke GT, and the eagerly awaited 390 Adventure R. KTM also revealed a new automatic transmission and an all-new TFT unit.

KTM plans to submit its self-administration application on November 29, aiming to complete the process within 90 days.