PIERER MOBILITY (PKTM) H2 2024 earnings summary

Executive summary

• Revenue fell 29% year-over-year to €1,879m, with a net loss of €1,080m compared to a €76m profit in 2023, driven by restructuring, impairments, and weak demand.

• KTM AG and subsidiaries entered court restructuring in late 2024 due to liquidity shortfalls, with a 30% creditor quota and €800m in new financing secured, mainly from Bajaj.

• Production volumes and workforce were significantly reduced; 1,800 jobs were cut and production in Austria was temporarily halted.

• The group remains a leading premium motorcycle manufacturer, but will exit the bicycle business in 2025 and sell its MV Agusta stake.

Financial highlights

• EBITDA dropped to €-481m from €324m, and EBIT to €-1,184m from €160m year-over-year.

• Equity turned negative at €-194m (from €909m), with an equity ratio of -8.1% (down from 30.8%).

• Net debt more than doubled to €1,643m, and gearing soared to 847.9%.

• Free cash flow was €-776m, and cash flow from operations was €-436m.

• Impairments of €360m (IAS 36) and €147m (IFRS 5) were recognized, mainly on goodwill, development costs, and assets held for sale.

Outlook and guidance

• Revenue for 2025 is expected to be below 2024, with a positive EBIT only anticipated from 2027, except for a one-time restructuring profit in 2025.

• Focus will shift to core motorcycle brands (KTM, Husqvarna, GASGAS); MV Agusta and bicycle businesses to be divested.

• Production and inventories will be further reduced to match demand.