KTM Fahrrad significantly increases profit in 2024/25, but expects declining business year

„Für das laufende Wirtschaftsjahr rechnet das Unternehmen jedoch bei einer gleichbleibenden EBIT-Marge mit einem leichten Umsatzrückgang und einem geringeren Jahresüberschuss." The management justified this cautious forecast, among other things, with the industry situation. „Das Unternehmen verwies auf die ungünstige Marktstimmung und Marktsituation", the reporting states.

As a central burden factor, KTM Fahrrad cited overcapacities in the European bicycle market. „Das enorme Überangebot von Fahrrädern und eBikes führe zu Rabattschlachten und damit zu hohen Umsatz- und auch Rendite-Einbußen", the company explained. This price and margin pressure affects the entire industry and, according to the group, is also noticeable in its own order situation.

Production at Record Levels

Nevertheless, production in the past fiscal year was running at full speed: „steigerte KTM Fahrrad auch die Produktion um 64 Prozent auf 116.457 Stück". According to the group management report, this increase is attributable to a long-standing order backlog – „der Umsatz hauptsächlich auf einen langfristig bestehenden Auftragsbestand zurückzuführen war, geht aus dem Konzernlagebericht hervor".

Innovation Offensive in the E-Bike Segment

In the e-bike segment, which has become the industry's most important growth driver in recent years, KTM Fahrrad wants to further increase its innovation turnover. „soll im eBike-Segment jedes Jahr mindestens ein Viertel des Umsatzes mit Modellen erzielt werden, die es ein Jahr zuvor noch nicht gab". Specifically, the company plans to position itself „Speziell im High-End-eBike-Segment […] durch Innovationen im Rahmenbereich differenzieren", as stated in a comment.

Austrian Location as Brand Core

Despite the planned internationalization and the growing model range, the company emphasizes domestic production as the core of its brand. „Der Fahrradhersteller mit Sitz in Mattighofen (Bez. Braunau) will auch künftig auf die Produktion in Österreich als Qualitätsmerkmal setzen." This positions KTM Fahrrad against the trend of many competitors who are increasingly relocating production abroad.

The location decision is considered part of a broader differentiation strategy. Against the backdrop of the ongoing price wars, KTM Fahrrad sees itself well positioned, particularly in the premium segment. The combination of Austrian manufacturing, short innovation cycles in the e-bike sector, and a clear high-end positioning is intended, according to the company, to shield it from general margin pressure.

Mixed Balance Sheet: Record Profit Against Industry Pressure

Overall, the 2024/25 balance sheet shows a mixed picture: On one hand, there is a record profit of 43.1 million euros, supported by a strong order backlog and significantly expanded production. On the other hand, there are warning signs from the current fiscal year – declining revenue, falling annual surplus, and an industry environment characterized by oversupply and price wars.

For the coming quarters, it will therefore be crucial whether the announced product innovations in the e-bike segment can secure the hoped-for margins. If the company succeeds in generating at least a quarter of e-bike revenue with new models while maintaining its Austrian production base, it sees itself well equipped for intensified competition – though, given the market situation, this is by no means a guarantee.