ZF North America Exceeds Financial Forecasts for 2025

ZF Friedrichshafen has announced that it surpassed its financial targets for the fiscal year 2025. Preliminary figures indicate an adjusted free cash flow anticipated to exceed EUR 1 billion, doubling the previous forecast of over EUR 500 million. This improvement is expected to slightly reduce net debt compared to the prior year. Additionally, the company's adjusted EBIT margin is projected to be well above 4%, outperforming the earlier estimate of 3% to 4%.

Despite these financial successes, ZF is facing challenges in its Electrified Powertrain Technologies Division. The company has agreed to terminate several non-profitable projects early, resulting in a one-time charge of EUR 1.5 to 1.7 billion. This charge will lead to an accounting loss for the fiscal year 2025, despite the division's significant operational performance improvements.

Final audited results will be disclosed at the Annual Financial Press Conference on March 19, 2026.