KTM’s Q2 rebound gives clearest sign yet of real recovery
After nearly two years of declining revenues, excess inventory, production halts, lender talks and restructuring, the latest preliminary figures from KTM’s parent company, Bajaj Mobility AG, provide the clearest evidence yet that the group’s recovery is starting to happen at an operational level.
Bajaj Mobility reported revenue of nearly €370 million in the second quarter, up from €231 million in the same quarter of 2025.
The company sold 48,672 KTM, Husqvarna and GASGAS motorcycles outside India during the second quarter of 2026. This represents a 71 per cent increase compared to the 28,471 motorcycles sold during the heavily disrupted second quarter of 2025, and a 21 per cent improvement compared to the immediately relevant first quarter of 2026.
More importantly, Bajaj Mobility is expected to have an EBITDA margin of around 8.7 percent for the quarter, compared to a negative margin of 55.6 percent in Q2 2025.
Bajaj Mobility Q2 2026 preliminary figures
- Q2 Group revenue: approximately €370 million, compared to €231 million in Q2 2025
- Q2 motorcycle sales outside India: 48,672 units, up 71 percent year-on-year
- Motorcycle sales increased by 21 percent in the second quarter compared to the first quarter of 2026
- First-half motorcycle-segment revenue: around €700 million, compared to €373 million in H1 2025
- Worldwide motorcycle sales in first half: 147,572 units, up 81 percent
- Q2 EBITDA margin: Around 8.7 percent compared to negative 55.6 percent
- EBITDA margin in the first half: around 5.4 percent compared to negative 43.3 percent
Very different situation from the end of 2024
These figures indicate a major change in the company’s position during the second half of 2024.
When MCNews first examined KTM’s deteriorating financial situation in detail, the former PIERER Mobility Group reported a 27 percent decline in first-half revenue and an operating loss of nearly €200 million.
The company had pursued an aggressive growth strategy during the pandemic-era boom, but weak consumer demand, high interest rates and excessive production left distributors and dealers with a large amount of unsold motorcycles.
That inventory build-up tied up working capital and increased debt just as the broader motorcycle market was beginning to cool. Production was reduced, thousands of positions were subsequently eliminated, and the group began to withdraw from many non-core businesses.
The situation deteriorated to such an extent that KTM AG, together with KTM Components GmbH and KTM F&E GmbH, entered judicial restructuring proceedings under self-administration in November 2024.
Creditors eventually approved a restructuring plan that would require KTM to pay a cash quota equal to 30 percent of accepted claims. That payment was to be made by May 23, 2025, creating a deadline that will determine whether KTM can continue operations.
Bajaj funded the rescue and eventually took control
As explained in our comprehensive April 2025 explanation of the proposed financial restructuring, KTM needs hundreds of millions of euros in new funding to satisfy creditors, resume production and rebuild its working-capital position.
Ultimately Bajaj Auto provided the necessary funds to overcome that hurdle. The Indian manufacturer supplied €450 million directly to KTM AG and €150 million to the listed parent company to meet creditor quota payments and stabilize the wider group.
That funding package, which MCNews covered when Bajaj secured KTM’s immediate future ahead of the payment deadline, also laid the groundwork for a permanent change in ownership.
By November 2025, Bajaj Auto International Holdings had acquired sole control of Pierer Bajaj AG and, through it, acquired approximately 74.9 percent of the listed Pierer Mobility Company.
Pierer Mobility was later renamed Bajaj Mobility AG, while the company’s headquarters were moved to Mattighofen. KTM, Husqvarna Motorcycles, GASGAS and WP are now the core of a very narrow motorcycle-centric operation under Bajaj control.
Operational improvement rather than any other accounting benefit
The most meaningful aspect of these latest preliminary data is the improvement in underlying EBITDA margins.
While Bajaj Mobility reported a net profit of €590 million for 2025, that result included a restructuring profit of €1.193 billion, largely arising from creditors accepting only 30 per cent of their registered claims.
That accounting profit repaired the balance sheet but it didn’t mean the motorcycle business suddenly generated a corresponding operating profit.
Q2 2026 EBITDA margin of around 8.7 per cent after deducting restructuring profits is clearly stated. It therefore provides a clear signal that motorcycle sales, cost cutting and the revamped operating structure are beginning to generate a sustainable business result.
EBITDA is not the same as net profit, as it does not include interest, taxation, depreciation and amortization. Still, the improvement from negative 55.6 percent to positive 8.7 percent in Q2 2025 is substantial.
The first quarter of 2026 had already delivered positive EBITDA of €5.5 million, although Bajaj Mobility still recorded an EBIT loss of €26.1 million and a net loss of €35.1 million during that period. The significantly stronger Q2 EBITDA margin shows that operational improvement has accelerated as the first half progressed.
Worldwide motorcycle sales rise to 147,572
Bajaj Mobility sold 89,004 KTM, Husqvarna and GASGAS motorcycles outside India during the first half of 2026.
58,568 motorcycles were sold through strategic partner and parent company Bajaj Auto, compared to 34,950 during the same period last year.
The combined volume worldwide therefore reached 147,572 motorcycles, 81 percent higher than the re-announced comparative figure of 81,336 motorcycles for the first half of 2025.
Motorcycle-segment revenue reached nearly €700 million for the half, compared with €373 million a year earlier. The initial release listed motorcycle-segment revenues at around €330 million in Q1 and €370 million in Q2.
That segment figure is broader than the €272.4 million previously identified exclusively as motorcycle revenues for Q1, with the broader segment also including the group’s related motorcycle operations and component activities.
Strong growth from a weak starting point
Although the figures are encouraging, the percentage growth must be seen against the exceptionally weak comparative period.
KTM’s Austrian production was heavily disrupted during the first half of 2025, with deliveries of several new models delayed, and the company deliberately restricting wholesale supply while dealers and distributors cleared excess inventory.
This makes the 71 percent year-on-year increase in motorcycle sales in the second quarter less extraordinary than it initially appeared.
A 21 percent increase compared to the first quarter of 2026 is arguably a more useful measure. This indicates that sales continued to increase after the initial bounce following the restructuring, rather than benefiting by comparison to the worst months of the crisis.
The rising EBITDA margins also suggest that additional volumes are not being achieved solely through indiscriminate discounting or through rebuilding the same inventory problem that helped precipitate the collapse.
However, the initial announcement did not provide updated figures for net debt, cash flow, dealer inventory or net profit. Those measures will be key in determining how much financial repair remains to be completed.
Full half year results are due in August
These Q2 and H1 figures are provisional, Bajaj Mobility is scheduled to publish its full half year financial results on August 27, 2026.
That report should provide more detail on profitability, cash generation, debt, inventory levels and the continued impact of the group’s cost-cutting program below the EBITDA line.
For now, the early results represent another meaningful step away from the battle for survival that consumed KTM for late 2024 and most of 2025.
Bajaj’s funding and eventual acquisition kept the Austrian operation alive, and these latest figures suggest the comeback is gaining momentum. The excesses that led to the crisis should not be repeated under the new system, which means the focus can eventually shift to bikes. I rode a prototype 1390 SMT in Austria two years ago and have wanted a prototype ever since. Bring out the production version—I might be tempted to put another sale on the board.
