Guidance & Group KPIs

Business development 

The Bajaj Mobility Group looks back on an eventful financial year. The year 2025 marked the successful completion of the restructuring proceedings of KTM AG, KTM Components GmbH, and KTM Forschungs und Entwicklungs GmbH, which were essential to ensure the continued existence of the Group. The necessary financial resources were provided by the long-standing strategic partner, Bajaj. As part of this, the Bajaj Group acquired a majority share in Bajaj Mobility AG at the end of 2025. 

Even after the acquisition of the majority shares, the cooperation with the Bajaj Group takes the form of a strategic partnership. At the same time, the takeover by Bajaj marks the end of the Bajaj Mobility Group’s affiliation with the Pierer Group, as the change of name of the company illustrates. However, the company’s Austrian roots remain unchanged, which represents a forward-looking strategic decision for both the Group and Bajaj. The aim is for the Group, through its strategic partnership with Bajaj, to quickly and sustainably regain its leading position in the global motorcycle market, set new standards, and secure the company’s success, both in the short-term and in the long-term. In the context of the affiliation to the Bajaj Group, the Executive Board is also assessing further synergy potential. 

The 2026 financial year will be heavily influenced by the consistent continuation of the restructuring plan, which includes measures aimed at focusing, redimensioning, and increasing efficiency that will strengthen the Group’s operational and financial stability in the long term. In addition, some substantial initial progress has already been made from the cooperation with Bajaj.  

The measures initiated include the termination of involvement in the bicycle segment, which was one of the factors that contributed to the need for the KTM Group’s insolvency restructuring proceedings. In addition, the Group’s structures will be streamlined in a targeted manner with the aim of sustainably increasing economic efficiency. In particular, a simplification of the corporate structures within the KTM Group is planned for the 2026 financial year. The strategic focus on streamlining and re-dimensioning is also reflected in a comprehensive redesign of internal management structures. By reducing hierarchical levels and information interfaces, and streamlining existing processes, decision-making processes are expected to be significantly shortened and organizational performance further strengthened.  

Despite the constant and intensive implementation of the measures previously communicated in the course of the restructuring proceedings, the Group once again expects a challenging market environment in the 2026 financial year. The measures initiated by the Executive Board are intended to ensure that the KTM Group returns to sustainable operational profitability in the long-term, in spite of the challenging market environment. The focus is on the consistent implementation of the restructuring program, a clear focus on the core business, the optimization of cost structures, and the strengthening of financial stability. The close cooperation with the Bajaj Group is a key lever for improving global competitiveness and efficiency. Together, these steps are intended to ensure that the Group achieves stable positive results and generates solid free cash flows over the long-term. Working capital management will continue to be a key aspect of the Group’s financial stabilization and management. The focus in this respect is on the consistent reduction of inventories at both dealer and Group level. By optimizing production planning, ordering processes, and distribution processes, overstocks are to be systematically avoided and capital commitments sustainably reduced. On the customer side, the Group is strictly adhering to its existing payment terms. An extension of payment deadlines is deliberately avoided in order to keep receivables management stable and to minimize the risk of increased receivables. At the same time, the restoration of standard payment terms at suppliers is being pushed forward.  

The Group’s earnings situation will also be impacted by the US customs regulations introduced during the 2025 financial year. For motorcycle imports from the European Union, the basic tariff of 15% and an additional tariff of 50% on certain steel and aluminum derivatives are particularly relevant. This results in an average tariff of between 16-25% that the group faces. Import duties of up to 50% are added to trade goods from China and India. In PG&A, customs duties vary depending on the product and import route; the average burden of the Group in this respect is around 19%. These additional costs have been fully accounted for in the current business plans. According to current estimates, the tariffs will have a noticeable effect on EBIT, but they do not call into question either the existing US commitment or the strategic orientation of the Group. Due to ongoing negotiations and the possibility of short-term changes, it should be noted that these explanatory notes on the impact of customs policy decisions on the Group are only an up-to-date recording at the time of writing. 

With the capital received within the scope of the restructuring proceedings, coupled with the release of working capital and the availability of financing, the Executive Board expects the Group’s liquidity to be secured. 

Motorsport 

In the 2026 season, the already impressive number of 537 world championship titles won is to be further increased to the highest degree through passionate commitment. This goal was already achieved at the beginning of the financial year 2026, when the group recorded another significant motorsport success: Red Bull KTM Factory Racing once again won the 2026 Dakar Rally, which is considered the toughest Rally raid event in the world. Luciano Benavides secured his first Dakar overall victory after a total of around 8,000 kilometers and 13 intense stages (excluding the prologue) and thus also achieved the 21st Dakar triumph in KTM's history. The Argentine driver prevailed in one of the most dramatic and close finales in rally history: with a lead of just two seconds over Ricky Brabec (Honda), Benavides crowned an impressive performance that was characterized by three won stages and exceptional consistency. 

In the 2026 season, orange will also mark the color scheme in MotoGP for the group. In perspective, KTM was the first manufacturer to successfully test the completely redesigned 850cc engine for the 2027 MotoGP season back in September 2025, which is required due to adapted technical regulations of the competition. Preparations for the MotoGP framework from 2027 onwards are of great importance in the current season. 

KTM's technical involvement in Moto3 will cease to exist from the 2028 season, as the amended regulations only provide for standard motorcycles from a competitor. For KTM, this means reorienting the promotion of young talent, with the next steps and measures currently being evaluated. 

Investments  

The investments made in recent years have secured the necessary production capacities for the coming years. Against this background, the targeted investments were subjected to a comprehensive assessment with the aim of analyzing their strategic relevance and operational necessity. It is expected that this will significantly reduce capital expenditure until operating profitability is achieved, without restricting the company's substance or future viability. However, the focus of investments will continue to be on the (further) development of existing and new models. 

Financing situation 

With the completion of the restructuring proceedings on the one hand and the Bajaj Group as a strong partner and majority shareholder on the other, the Bajaj Mobility AG Group has sufficient financial flexibility. The aim is to maintain net financial debt at a sustainably healthy level, even after the Group has been re-dimensioned, while ensuring continued operational viability. 

 Text extracted from Annual Report 2025 published on 26 March 2026