ZF Friedrichshafen AG has released its financial results for the first nine months of 2025, demonstrating stronger profitability and solid cash flow despite a difficult global market shaped by geopolitical tensions, tariffs, and slowing demand. The company’s performance programs are increasingly driving positive impact.
From January to September, ZF generated €28.9 billion in Group revenue, compared with €31.4 billion in the prior-year period. Around six percentage points of the nominal 8% decline stemmed from M&A effects, primarily due to the closing of the ZF Chassis Modules joint venture with Foxconn in April 2024. Excluding currency and M&A effects, organic revenue decreased by only 0.6%, reflecting resilience in a challenging environment.
The adjusted EBIT margin improved to 3.7%, up from 2.8% a year earlier. Despite ongoing transformation-related expenses, ZF achieved a notable rise in profitability as performance initiatives gained momentum.
ZF also delivered a major turnaround in cash generation: adjusted free cash flow reached €683 million, an improvement of nearly €1.6 billion compared to the negative €870 million recorded in the previous year. This result highlights successful actions to improve operational efficiency and optimize working capital.
The company strengthened its financial position further through successful refinancing measures, including a $1.5 billion five-year bond issuance in September. Leverage improved from 3.27x at the end of 2024 to 3.15x as of September 30, 2025, with net debt at approximately €10.6 billion.
“Our 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.
Find the nine-month figures summary here.
