Results of the restructuring program of ZF Friedrichshafen AG

Suppliers ZF Terminates Unprofitable Customer Projects Prematurely

2026-01-26 From Claus-Peter Köth | Translated by AI 2 min Reading Time

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In Division E, the supplier has reached an agreement with customers to terminate several projects early that are not achieving the expected profitability. The Executive Board speaks of a release from legacy burdens.

ZF Forum in Friedrichshafen.(Image: ZF) — ZF Forum in Friedrichshafen.
(Image: ZF)

The restructuring program to improve operating performance and realign ZF Friedrichshafen AG is showing initial success, according to a statement: Based on preliminary figures, the supplier has exceeded its targets for operating profit and cash flow in the fiscal year 2025. The adjusted free cash flow will exceed one billion euros; the adjusted EBIT margin will be well above 4.0 percent.

ZF had expected the adjusted EBIT margin for 2025 to be in the range of 3.0 to 4.0 percent; the adjusted free cash flow at more than €500 Million ($578 Million). In view of the numerous extremely volatile influencing factors in the global markets, the company had stated sales expectations of more than EUR 38 billion when presenting its half-year figures.

Mathias Miedreich: "Cause for optimism"

Based on current developments, ZF expects to reduce its financial liabilities from operating cash flow by the end of December 2025 - earlier than previously assumed.

As part of the restructuring of the E division (Electrified Drive Technologies), the supplier has also reached an agreement with various customers to terminate several projects early that are not achieving the expected profitability due to the slower ramp-up of e-mobility.

This decision will result in a one-off charge that will have a negative impact on the annual result for 2025 and lead to an accounting loss. According to the press release, the operating performance of the E division has improved significantly compared to the previous year and is on track with the restructuring program, which will be consistently continued in all its elements in 2026.

"The improved operating performance and the faster than planned reduction in debt give us reason to be confident," says ZF CEO Mathias Miedreich. "Our measures to realign ZF are taking effect. However, this is no reason for complacency, but rather an important intermediate step and an incentive to consistently continue on our course. This uphill path continues to require our full strength and concentration."

"Although the special charge in the area of e-mobility will lead to an accounting loss for 2025, it frees us from legacy burdens and is the basis for new room for maneuver and sustainably improved profitability in the coming years," says ZF CFO Michael Frick, assessing the measure.

ZF will present its annual figures at the annual press conference on Thursday, March 19, 2026.

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Date: 08.12.2025

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