ZF improves operational performance in the first half of the year

ZF Friedrichshafen AG ended the first half of 2026 with improvements in key financial indicators, despite the still challenging scenario for the global automotive industry. The company raised its adjusted EBIT margin to 5,0%, compared to 4,3% in the same period of 2025, and maintained its projections for the remainder of the year.

Between January and June, sales totaled €19,3 billion, a nominal decrease of 2% compared to the €19,7 billion recorded a year earlier. However, excluding currency effects and mergers and acquisitions, the company registered organic growth of 0,5%.

Adjusted EBIT reached €964 million, up from €853 million in the first half of 2025. Adjusted free cash flow also showed strong growth, increasing from €465 million to €989 million.

According to ZF CEO Mathias Miedreich, the results reflect the company's focus on operational efficiency and cost control. "Cost discipline and an even greater focus on operational performance and value-generating products have begun to produce results. The environment remains challenging, but we are making consistent progress," he stated.

Cash and investments

According to the company, the improvement in cash generation was driven by operational performance and the maintenance of a disciplined investment policy. ZF's CFO, Michael Frick, highlighted that these factors strengthened the company's cash generation capacity, despite the temporary impact of disbursements related to restructuring programs initiated in previous periods.

The company also reduced investments in research and development (R&D), which fell by about 7%, to €1,6 billion, equivalent to 8,2% of net revenue. Investments in property, facilities and equipment declined by approximately 19%, totaling €600 million.

At the end of June, net debt was approximately €9,8 billion. The leverage ratio fell from 2,98 to 2,75 times compared to the end of 2025, while available liquidity remained above €7 billion, including an unused €3,5 billion revolving credit facility.

Staffing levels decrease

ZF ended the first half of the year with 149.675 employees worldwide, a decrease of just over 2% compared to the 153.153 recorded at the end of 2025. In Germany, the number of employees fell from 49.210 to 47.068, a drop of more than 4%.

Company maintains targets for the year.

Despite economic and geopolitical uncertainties, the company reaffirmed its projections for 2026. The expectation remains to exceed €38 billion in sales and surpass €1 billion in adjusted free cash flow.

According to Michael Frick, the operating margin obtained in the first half of the year is already at the upper limit of the range projected by the company, between 4% and 5%. The executive stressed, however, that the business environment remains marked by high volatility, especially due to geopolitical tensions and the slow economic recovery in Germany and Europe, factors that continue to put pressure on the automotive industry.