ZF Finance GmbH Exceeds 2025 Financial Expectations

ZF Finance GmbH has announced that its preliminary financial results for 2025 show an operating profit and adjusted free cash flow above initial forecasts. The company expects its adjusted free cash flow to surpass EUR 1 billion, well above the previous projection of over EUR 500 million. This financial improvement will slightly reduce net debt compared to the prior year.

The adjusted EBIT margin is expected to exceed 4.0%, outperforming the previous forecast range of 3% to 4%. Despite these positive results, the Electrified Powertrain Technologies Division is undergoing restructuring, resulting in agreements to terminate non-profitable projects prematurely. This restructuring incurs a one-time charge of EUR 1.5 to 1.7 billion, leading to an accounting loss for the year 2025. However, operational performance in the division has enhanced significantly.