Press Release
ZF Nine-Month Earnings Rise, Funding Position Strengthens
- Sales of €28.9 billion in the first nine months of 2026
- Adjusted EBIT margin rises to 4.9%, at the upper end of the full-year guidance range
- Leverage declines to 2.61x from 2.98x at end-2025
Friedrichshafen, Germany. ZF Friedrichshafen AG posted sales of €28.9 billion in the first nine months of 2026, broadly unchanged from a year earlier. Organic sales rose 1.4% despite continued weakness in global passenger-car markets. Adjusted EBIT increased to €1.4 billion from €1.0 billion, lifting the margin to 4.9% from 3.6%. Adjusted free cash flow rose to about €1.1 billion from €683 million.
Organic growth was driven mainly by North America, while sales in Europe and Asia-Pacific remained flat. Geopolitical tensions continued to weigh on confidence and demand in global vehicle markets.
ZF’s performance program continued to support earnings. Adjusted EBIT rose by €368 million year over year to €1.4 billion in the first nine months. The adjusted EBIT margin increased to 4.9%, at the upper end of ZF’s full-year guidance range of 4.0% to 5.0%.
Adjusted free cash flow rose by €411 million year over year to about €1.1 billion, supported by stronger operating performance and continued disciplined investment. Cash effects related to restructuring provisions weighed on third-quarter free cash flow.
Net debt stood at €10.1 billion as of September 30, down about €130 million from year-end 2025. Leverage declined to 2.61x from 2.98x.
In mid-September, ZF placed a €750 million, 4.5-year bond with a 5.750% coupon amid volatile capital markets. ZF plans to use the proceeds to redeem selected euro-denominated bonds due in 2027 and 2028 ahead of maturity. Investor confidence was further supported by recent upgrades to ZF’s rating outlooks by Moody’s and S&P Global Ratings.
“We are making measurable progress. Earnings and free cash flow have improved, and leverage has declined,” said ZF Chief Financial Officer Michael Frick. “The bond placement allowed us to address upcoming maturities early and strengthen our funding position. But the market remains difficult, and there is more work to do. We will continue to restructure the business, reduce costs and debt, and speed up execution. These efforts are essential to translating ZF’s strong technology capabilities into long-term economic success.”
ZF will present full-year 2026 figures at its annual press conference on Thursday, March 18, 2027.
