Press Release
Nine-Month Results 2025: ZF Improves Profitability Despite Market Challenges
- Revenue of €28.9 billion in first three quarters
- Adjusted EBIT margin rises to 3.7 percent, exceeding last year’s level
- Adjusted free cash flow reaches around €700 million, significantly above prior-year figure
Friedrichshafen, Germany. ZF Friedrichshafen AG has reported financial results for the first nine months of 2025. Despite a challenging market environment marked by geopolitical tensions, tariffs, and a noticeable slowdown, the company improved profitability and generated strong cash flow. Performance programs are showing increasing benefits.
From January through September, Group revenue totaled €28.9 billion (prior-year period: €31.4 billion). About 6 percentage points of the nominal 8-percent decline were due to M&A effects, mainly the closing of the ZF Chassis Modules joint venture with Foxconn in April 2024. Adjusted for currency and M&A effects, organic revenue was down 0.6 percent year over year. Tariffs, geopolitical risks, and volume declines across several segments weighed on performance.
The adjusted EBIT margin reached 3.7 percent (prior-year period: 2.8 percent). Despite ongoing transformation costs, ZF significantly improved profitability. Performance programs are taking hold and driving this development.
Adjusted free cash flow for the nine-month period was €683 million, a significant improvement of nearly €1.6 billion compared to minus €870 million a year earlier. This reflects consistent execution of measures to enhance operational efficiency and working capital.
ZF also successfully refinanced during the period, including a $1.5 billion five-year bond placement in September. Leverage decreased from 3.27x at year-end 2024 to 3.15x as of September 30, 2025. Net debt stood at approximately €10.6 billion on that date.
“Results for the first nine months of 2025 show that we remain capable of acting in a difficult environment. Our performance programs are working and stabilizing profitability as we continue the company’s transformation. Despite market volatility and industry-specific pressures, ZF is on track to meet its full-year targets,” said CFO Michael Frick.
ZF will present full-year 2025 figures at its annual press conference on Thursday, March 19, 2026.
Find the nine-month figures summary here.
