ZF sales fall in the first half of the year, but profitability improves

Technology group ZF Friedrichshafen AG reported sales of €19,7 billion in the first half of 2025, a 10,3% drop compared to the same period a year earlier. Despite the decline in revenue, adjusted operating profit (EBIT) grew to €874 million, raising the margin to 4,4% (compared to 3,5% in 2024).

According to the company, the result reflects the first effects of a broad restructuring and strategic realignment program, which seeks to increase competitiveness and profitability in a scenario of stagnation in global vehicle production, slow progress in electromobility and commercial uncertainty.

"The automotive sector is going through a historically challenging time, but our measures are already showing results: we have achieved higher profits despite falling revenues," said CEO Holger Klein.

Portfolio adjustments and staff cuts

ZF is strengthening divisions with greater potential, such as Chassis Solutions, Commercial Vehicles, Industrial Technology, and Services. Projects such as autonomous shuttles will no longer be pursued. The reorganization of the Electronics and Advanced Driver Assistance Systems (ADAS) division is also under consideration, with the possibility of external partnerships.

The process includes production adjustments, corporate structure reviews, and workforce cuts. As of June 2025, the company employed 157,8 people worldwide, 2% fewer than at the end of 2024. In Germany, the reduction was 2,6%. Since 2024, 11,2 full-time jobs have been eliminated.

According to Klein, ZF is in the midst of the most comprehensive restructuring program in its history, fully prioritizing profitability and competitiveness, and strengthening its positioning to face future challenges. Stagnant global vehicle production and the slow expansion of electromobility are some of the challenges highlighted by the CEO, who stated: "We are addressing these issues and accelerating our restructuring program. This is a difficult path, but it is the right one for ZF," he concluded. 

More solid financial structure

The group also saw an improvement in adjusted free cash flow, which went from negative in 2024 to €465 million this semester. The issuance of a €1,25 billion bond bolstered the company's liquidity, which closed June with approximately €8 billion available.

Perspectives: ZF at IAA Mobility in Munich

ZF has confirmed its presence at IAA Mobility 2025 in Munich, where it will showcase its Chassis 2.0 concept, based on by-wire steering and braking solutions, as well as its new Select e-drive platform for hybrid and electric vehicles. The event will take place from September 9th to 12th.