Press Release
ZF Expects 2025 Operating Profit and Cash Flow Above Guidance
- Based on preliminary figures, adjusted free cash flow significantly exceeds prior forecast
- Adjusted EBIT margin expected significantly above 4.0 percent
- Debt reduction ahead of schedule
- Company exits non-profitable electric mobility projects early
Friedrichshafen, Germany. ZF Friedrichshafen AG announced preliminary 2025 figures showing operating performance and cash flow above its forecast range. Adjusted free cash flow is projected to exceed €1 billion. Adjusted EBIT margin is expected to surpass 4.0 percent significantly.
Earlier guidance anticipated an adjusted EBIT margin between 3.0 and 4.0 percent and an adjusted free cash flow above €500 million. Revenue was forecast at more than €38 billion amid volatile global markets.
Strong cash generation will allow ZF to reduce financial debt by year-end 2025 – earlier than planned.
As part of its restructuring of Electrified Powertrain Technology division, ZF agreed with customers to terminate several projects early. These projects were unlikely to meet profitability targets due to slower EV adoption. The decision will result in a one-time charge and a reported loss for 2025. However, operational performance in the division improved significantly year-over-year and remains on track with the restructuring plan, which continues into 2026.
CEO Mathias Miedreich said: “The improved operating performance and faster debt reduction are encouraging. Our transformation measures are working. This is not a reason for complacency but an important milestone and motivation to keep pushing on our path forward.”
CFO Michael Frick added: “The one-time charge in electric mobility will lead to a reported loss for 2025. But it frees us from legacy burdens and creates room for sustainable profitability in the coming years.”
ZF will present full-year results at its annual press conference on Thursday, March 19, 2026.
