ZF anticipates EBIT margin well above 4% and €1bn+ cash flow despite revenue falling below €38bn

Ahead of the presentation of the company’s full-year results at its annual press conference on Thursday, March 19, 2026, ZF anticipated preliminary figures. According to ZF, adjusted EBIT margin is expected to surpass 4.0 percent significantly. Moreover, adjusted free cash flow is projected to exceed €1 billion. In addition, strong cash generation might allow ZF to reduce financial debt by year-end 2025 – earlier than planned. Finally, revenue was forecast at more than €38 billion amid volatile global markets.

In 2024 ZF had reported sales of €41.4 billion, reflecting an 11% decline compared to the previous year. Taking into account the expected 38 billion euros figure, it would then mean a further decrease in turnover.

The impact of restructuring on ZF revenues

In fact, ZF points out that as part of its restructuring of Electrified Powertrain Technology division, the group agreed with customers to terminate several projects early. These projects were unlikely to meet profitability targets due to slower EV adoption. The decision will result in a one-time charge and a reported loss for 2025. However, operational performance in the division improved significantly year-over-year and remains on track with the restructuring plan, which continues into 2026.

During Busworld Europe last year, ZF reported the bus business having a great momentum with 30% growth in 3 years and orders exceeding €1BN.

“The improved operating performance and faster debt reduction are encouraging. Our transformation measures are working. This is not a reason for complacency but an important milestone and motivation to keep pushing on our path forward”, commented CEO Mathias Miedreich.

“The one-time charge in electric mobility will lead to a reported loss for 2025. But it frees us from legacy burdens and creates room for sustainable profitability in the coming years”, added CFO Michael Frick.