Bajaj Mobility (BMAG) H2 2025 earnings summary

Executive summary

• Achieved a major turnaround in 2025 after insolvency, with a €800 million capital injection from Bajaj Auto (74.9% stake), stabilizing operations and relaunching as Bajaj Mobility AG in January 2026.

• Streamlined portfolio to focus on three core motorcycle brands (KTM, Husqvarna, GASGAS), divesting non-core businesses including car manufacturing, bicycles, KTM Sportcar/X-Bow, and MV Agusta.

• Production resumed mid-2025 after a six-month halt, with strong recovery in sales and positive market reception for new models.

• Achieved significant inventory normalization, reducing groupwide motorcycle inventories by over 100,000 units and improving spare parts availability above 90% by December 2025.

• Most successful motorsport year in company history, winning 29 championship titles in 2025.

Financial highlights

• 2025 revenue was €1,009 million, a 46% year-over-year decrease due to operational constraints and restructuring.

• EBITDA reached €874 million, EBIT €748 million, and net profit just under €600 million, all heavily influenced by a €1,193 million restructuring gain.

• Adjusted EBITDA (excluding restructuring gain) was €319 million, while adjusted EBIT was -€444 million.

• Free cash flow for 2025 was -€34 million, a significant improvement from -€776 million in 2024.

• Net debt reduced by over 50% to €798 million; equity ratio improved to 24.3%.

Outlook and guidance

• 2026 focus is on regaining profitability, positive free cash flow, and notable growth in revenue and unit sales, with no specific growth or margin guidance yet.

• Ambition to grow faster than the global motorcycle market in 2026, but volumes will be kept below retail to allow further inventory normalization.

• Several new model launches planned to strengthen market positioning and premium brand focus.

• Historic EBIT margin (8-10%) not expected before 2027; further profitability improvements targeted in subsequent years.

• Management prioritizes service excellence and cost discipline amid macroeconomic and geopolitical uncertainties.