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KTM’s Financial Crisis: Restructuring, New Ownership and Recovery

KTM completed a court-supervised restructuring, changed parent ownership and refinanced an earlier loan. Bajaj Mobility’s 2026 results show improving indicators, but first-half EBIT remained negative.
Entry151 Date Time4 min MechanicCarCody Team

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KTM did not simply shut down or disappear into bankruptcy: KTM AG entered court-supervised restructuring with self-administration in Austria, reached a creditor settlement and continued operating. Bajaj Mobility AG now owns KTM AG outright, and a new bank loan replaced an earlier Bajaj loan. Sales and some interim results have improved, but Bajaj Mobility still reported a loss at the operating-profit level for the first half of 2026. The recovery is underway, not proven complete.

What happened to KTM?

KTM AG, KTM Components GmbH and KTM Forschungs & Entwicklungs GmbH applied for court-supervised restructuring with self-administration in Austria on November 29, 2024. This was an insolvency-related legal process that allowed the businesses to continue under court supervision; it is more precise than saying KTM simply “went bankrupt.”

The plan offered creditors a cash quota equal to 30% of eligible claims. Creditors accepted it on February 25, 2025. Bajaj Mobility’s reporting says the €525 million needed for the quota was deposited on May 22, and the proceedings concluded on June 16, 2025. At June 30, the company said most registered and recognized claims had been paid, while some claims were still being determined or disputed. The settlement did not mean every creditor received full repayment.

In its November 26, 2024 announcement, KTM CEO Stefan Pierer described the move as “a pit stop for the future.” Co-CEO Gottfried Neumeister said the focus was making the company “robust for the future.” These were management’s stated aims at the start of the process, not independent assessments of KTM’s prospects.

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How severe was the financial crisis?

A 2026 European Commission document recounts that KTM’s 2024 sales fell sharply as inventory built up, alongside a large reported loss and debt burden. It also describes production stoppages and layoffs, a restart in March 2025, and another interruption related to parts shortages in April. Those events show the scale of the operational disruption as well as the financial strain; the figures below are the Commission’s account of 2024, not a new measure of KTM’s current position.

2024 indicator Reported figure Attribution
Sales decline 29.4% European Commission, 2026 document recounting 2024 events
Motorcycles in inventory 265,000 European Commission, 2026 document recounting 2024 events
Reported loss €1.1 billion European Commission, 2026 document recounting 2024 events
Debt €1.642 billion European Commission, 2026 document recounting 2024 events

The first-half 2025 group report recorded €1,695 million of liabilities derecognized and a €1,186.5 million restructuring profit. These are accounting consequences of the restructuring, not cash earnings generated by selling motorcycles. A large restructuring profit therefore should not be read as evidence that the underlying business had already returned to normal profitability.

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Who owns KTM now?

Bajaj Mobility AG, formerly PIERER Mobility AG, is the current parent. Its FY2025 report says Bajaj acquired a majority share in the listed group at the end of 2025, ending the group’s affiliation with the Pierer group; the company adopted the Bajaj Mobility name. In 2026 disclosures, KTM AG is identified as a wholly owned subsidiary of Bajaj Mobility AG. The parent-group name change does not mean KTM motorcycles stopped being made under the KTM brand.

What happened to KTM’s debt and refinancing?

A €450 million loan from Bajaj was used in connection with the restructuring. In February 2026, KTM AG refinanced it with a €550 million unsecured, five-year loan from an international banking consortium. Bajaj Mobility said the refinancing reduced ongoing interest costs. This replaced the earlier financing; it did not erase the borrowing or establish that KTM has no debt.

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The 30% creditor quota and the later refinancing are separate parts of the story: the quota addressed the restructuring plan for eligible creditor claims, while the bank loan was replacement financing for KTM AG.

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Is KTM recovering?

Bajaj Mobility’s results show improvement in reported sales and revenue, but the figures cover different periods and business scopes. Group revenue is not the same as revenue from KTM motorcycles alone, and the motorcycle sales totals include brands and, in some periods, sales by Bajaj Auto in India.

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Period and measure Reported result Scope and attribution
FY2024 group revenue €1,879.0 million Bajaj Mobility annual report, 2026
FY2025 group revenue €1,009.4 million Bajaj Mobility annual report, 2026
Motorcycles sold in FY2025 275,593 Worldwide across KTM, Husqvarna, GASGAS and MV Agusta while held; includes units sold by Bajaj in India, Bajaj Mobility annual report, 2026
H1 2026 group revenue €701.4 million, up 65.0% year on year Bajaj Mobility half-year results, 2026
H1 2026 motorcycle revenue €579.6 million KTM, Husqvarna and GASGAS, Bajaj Mobility half-year results, 2026
Motorcycles sold in H1 2026 147,572 worldwide 89,004 in the KTM, Husqvarna and GASGAS business, up 91.9% year on year, plus 58,568 sold in India by Bajaj Auto; Bajaj Mobility half-year results, 2026
H1 2026 group EBITDA €37.6 million Bajaj Mobility half-year results, 2026
H1 2026 group EBIT Negative €24.8 million Bajaj Mobility half-year results, 2026
Q2 2026 group EBIT Positive €1.3 million Bajaj Mobility half-year results, 2026

That mix is encouraging but not conclusive. The full-year 2025 revenue figure remained well below 2024, while the H1 2026 comparison shows improvement against the same half-year a year earlier. Positive Q2 EBIT is a quarterly indicator; it does not cancel out negative EBIT for the full first half.

What to watch next

To judge whether the improvement lasts, compare like periods and scopes, then look beyond sales alone. Bajaj Mobility’s FY2025 report describes continued cost reductions, a sharper business focus and workforce reductions planned for 2026. These are reported actions and plans, not proof that operational or market risks have ended.

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Quick Recap

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  • Fits The Following Models: SX/SMR
  • Revenue and operating profit over successive comparable periods, especially whether EBIT remains positive.
  • Motorcycle sales by brand and market, without treating Bajaj Auto’s India sales as KTM AG sales.
  • Company inventory and dealer inventory as distinct measures; a sales increase does not by itself show that both have normalized.
  • Whether cost reductions and production plans support sustained results rather than only a short-term rebound.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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