News Flash: Spanish Bicycle Production to Hit Five-Year Low Below 300,000 Units; Peloton Recalls 800,000+ Bikes; Fox Factory Q3 Results Fall Short of Expectations

2025 Spanish Bicycle Production Data

Affected by the sluggish market at the start of the year, Spanish bicycle production is expected to hit a five-year low in 2025 – the first time it falls below 300,000 units annually since 2020. However, Q3 data shows signs of recovery.

Overall Pressure: Both Production and Output Value Drop to Five-Year Lows

According to official data from Spain’s Ministry of Industry and Tourism, the total Spanish bicycle production in the first nine months of 2025 reached 218,000 units, a 10% year-on-year decline. The total output value stood at €176.5 million, down over 8% from the same period last year. Globally, the decline in European bicycle production comes as no surprise, with the Asian market also facing pressure.

Based on current data, the industry generally predicts that Spain’s full-year bicycle production in 2025 will drop below 300,000 units for the first time since 2020. Even if Q4 maintains the 71,000-unit output from the same period in 2024, the full-year total will only be around 290,000 units, marking a phased trough for the market.

Market Differentiation: Bleak H1, Recovery Inflection Point in Q3

While full-year data is worrying, positive changes are emerging in the market’s internal rhythm:

1. In-depth adjustment in H1: In the first half of 2025, Spanish bicycle production was only 150,500 units, a sharp 12% year-on-year decline, with output value also falling by 13% – indicating a clear market adjustment period.
2. Significant recovery in Q3: A turning point occurred in Q3, where the production decline narrowed sharply from nearly double digits in the previous two quarters to 4%. Specifically, output value rose 16.5% year-on-year in July; after a brief 1.5% drop in August, it quickly rebounded with 2.7% growth in September.

Spain’s leading brand Orbea previously predicted that the market would stabilize in H2, and current data confirms this judgment. Notably, despite falling production, the average selling price of Spanish bicycles in 2025 has climbed to €809, up from €725 in 2024 – reflecting the impact of product structure upgrading or cost pressures.

E-Bikes as a "Weak Link"

While the overall market shows recovery signs, the e-bike segment underperforms. In the first nine months of this year, only 1,140 e-bikes were produced locally in Spain, a drastic 17.5% year-on-year drop, with an output value of €2.4 million.

In contrast, 2024 was a "mini peak" for Spain’s bicycle industry: full-year production reached 309,900 units (a 2.9% year-on-year increase), with total output value hitting €240 million. That year, the industry maintained over 24,000 direct jobs, covering the entire industrial chain including production, distribution, sales, and maintenance.

Peloton Recalls 800,000+ Bike+ Due to Seatpost Defect

Peloton is recalling approximately 833,000 Original Series Bike+ exercise bikes because the seatpost assembly may break.

There have been three reports of seatpost breakage and detachment, as well as two injury reports from falls.

The recall involves Bike+ models numbered PL02 with serial numbers starting with the letter "T". The bike measures 4 feet long and 2 feet wide, with an adjustable seat and handlebars. The serial number is located inside the front fork, behind the front fork, or behind the flywheel.

These bikes were sold online and in physical stores of Dick's Sporting Goods nationwide from January 2020 to April 2025, with a retail price of approximately $2,495.

Fox Factory Q3 Results Fall Short of Expectations

Fox Factory’s latest financial report shows that the company’s Q3 net sales increased 4.8% year-on-year, driven primarily by the powered vehicles business. However, its Specialty Sports Group (SSG) – which includes bicycle-related businesses and baseball/softball equipment brands – saw revenue drop 11.2% year-on-year.

The company also lowered its profit forecasts for Q4 and the full year. In an official statement, it noted: "SSG’s performance fell short of expectations, mainly due to active de-stocking by OEMs, distributors, and retail partners ahead of year-end. This impacted our Q3 results and is reflected in our updated full-year outlook."

SSG Business Performance

The SSG division encompasses several Fox bicycle brands, including Fox, Marzocchi, Ride Concepts, RaceFace, Easton Cycling, and Lizardskins, as well as Marucci’s baseball and softball equipment business. In Q3, SSG sales reached $133 million, a 13% decrease from $150 million in the same period last year. However, cumulative sales this year still totaled $391 million, slightly higher than the $387 million from the same period last year.

Overall Company Performance

In Q3, Fox Factory reported a net loss of $662,000; the cumulative net loss for the first nine months reached $258 million.

CEO Mike Dennison stated in a press release: "This quarter, we continued to address the adverse impacts of tariffs while maintaining necessary investments in innovation and products. Although these investments have created short-term margin pressure beyond expectations, we believe they will strengthen our competitive position. We have updated our outlook based on current conditions and remain focused on controllable factors: improving operational efficiency, driving product innovation, and optimizing our balance sheet to better leverage operational leverage when the market recovers."

Updated Performance Forecasts

Fox’s adjusted Q4 outlook projects net sales between $340 million and $370 million, with adjusted earnings per share (EPS) of $0.05 to $0.25.

For the full 2025 fiscal year, the company now expects net sales between $1.445 billion and $1.475 billion, with adjusted EPS of $0.92 to $1.12. This compares to its previous forecast of $1.45 billion to $1.51 billion in net sales and adjusted EPS of $1.60 to $2.00.