BREAKING NEWS! KTM CEO STEFAN PIERER STEPS AWAY AMID FINANCIAL STRUGGLES

Big news from KTM today as the Pierer Mobility Group announces that CEO Stefan Pierer is stepping down, handing the reigns over to Co-CEO Gottfried Neumeister. We spoke with a KTM USA representative today and they explained that this was a pre-planned arrangement. Gottfried was hired in September of 2024, and all along, the plan was for Stefan to hand the reigns to him. See the full press release here, plus read below a financial report from KTM about their sales in 2024.

Press release: Mattighofen, January 23, 2025 – Stefan Pierer, CEO of KTM AG for many years, is handing over the management of the company to his Co-CEO Gottfried Neumeister. With this step, one of the world’s leading motorcycle manufacturers is strategically positioning itself for the future. Pierer will continue to accompany the reorganization process as a member of the Executive Board with full commitment and will remain part of the KTM family.

Since taking over KTM in 1992, Stefan Pierer has built the company from a regional motorcycle manufacturer into a global brand with legendary status in the motorcycle industry. Today, for millions of fans, KTM stands for innovation, performance and a spirit of adventure like no other brand – values that will remain in focus under the new management.

Stefan Pierer (right) with Ken Roczen after he won the 2011 MX2 (250) FIM World Championship in his home country of Germany.

Stefan Pierer: “For me, KTM was always more than just a company – it was and is a passion, a mission and a family. The decision to hand over the helm was not an easy one. I am deeply convinced that Gottfried Neumeister, with his strategic foresight and commitment, is the right choice to lead KTM into the future.”

Gottfried Neumeister brings extensive experience in corporate management, including many years as a board member of flyniki and DO &CO. Gottfried emphasizes: “Stefan Pierer has created a unique company that reflects the passion and pioneering spirit of all employees. I see it as my task to preserve this legacy and at the same time to break new ground. KTM stands for courage, innovation and passion – values that we will continue to live by and carry into the future. Together with our team, we will continue to strengthen KTM and set new standards to build the best motorcycles in the world.”

Stefan Pierer with Ryan Dungey after he won the 450SX Championship at the 2016 East Rutherford Supercross. 

With the new management structure, KTM is ideally equipped to master the challenges of the future and continue its success story. The focus remains on innovation, performance and the continuous development of a motorcycle brand that inspires millions of fans worldwide. KTM remains focused on redefining the limits of what is possible on two wheels. The company will continue on its path with the same determination that has made it a global icon under the leadership of Stefan Pierer.

Stefan Pierer and Heinz Kinigadner.

ABOUT GOTTFRIED NEUMEISTER

Gottfried Neumeister (left) and Stefan Pierer (right). 

After completing his studies in international business administration at the University of Vienna, Gottfried Neumeister worked as a consultant at Siemens AG Austria. In 2003, he founded flyniki together with Niki Lauda and was responsible for the successful development of the aviation business (until its sale to Air Berlin). In 2012, Mr. Neumeister moved to DO &CO Aktiengesellschaft, where he held various positions on the Management Board, most recently (2021-2023) as Co-CEO. Gottfried Neumeister has been Co-CEO of PIERER Mobility AG and KTM AG since September 1, 2024. He has also been a member of the Executive Board of Pierer Industrie AG since January 1, 2025.

KTM’S PRELIMINARY KEY FINANCIAL FIGURES FROM 2024

From today’s perspective, the PIERER Mobility Group expects consolidated revenue of around EUR 1.9 billion* in 2024 (previous year: around EUR 2.7 billion*). This corresponds to a decrease of around 29% compared to the 2023 financial year.

Due to a significant reduction in operating performance and one-off restructuring expenses, the Executive Board anticipates a negative EBITDA (result from operating activities before depreciation and amortization) of around EUR 300 million* for the 2024 financial year (before necessary allowances as part of the restructuring process). Expected impairments on intangible assets and goodwill will have an additional negative impact on EBIT (earnings before interest and taxes). Free cash flow will amount to a high negative triple-digit million figure. As a result, net debt is also expected to increase further in the second half of 2024.

FAR-REACHING RESTRUCTURING MEASURES

The 2024 financial year was characterized by far-reaching restructuring measures. To date, a total of more than 1,800 employees have been cut across the Group. In addition, production output was deliberately curtailed to reduce the number of motorcycles held by dealers and importers.

By reducing the production volume to around 230,000 motorcycles (-26% compared to 2023), global inventories were relieved by around 40,000 units (-18%). This represents an important first step in the restructuring plan

DECLINING SALES (TO DEALERS), CONTINUED STRONG END CUSTOMER DEMAND (RETAIL)

In the 2024 financial year, the Group sold 292,497 motorcycles(of which around 60,000 were sold via its Indian partner Bajaj), around 21% fewer than in the previous year (372,511 motorcycles). Around 110,000 motorcycles were sold on the European market. Europe thus accounted for 38% of Group sales; North America accounted for 24%, India and Indonesia (via partner Bajaj) for 21% and the remaining sales countries for 17%.

On a positive note, demand from consumers was strong. Distributors and dealers sold around 268,000 motorcycles to retail customers, the same level as last year. This demonstrates the continued high level of trust that dealers and consumers place in the company. Recent racing successes have confirmed this confidence. With three consecutive victories in the Enduro World Championship, two Supercross season openers and the first Dakar Rally win across all major motorcycle categories, the 2025 motorsport season has got off to a successful start.

In the Bicycle segment, the Group sold 106,311 electric bikes and bicycles (previous year: 155,859), which corresponds to a decline of around 32%. This decline in sales resulted from the sale of the R Raymon brand.

*Currently, the monetary conversion rate according to Google is 1 Euro to 1.04 U.S. Dollars.