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2mo ago

ZF Flags 2025 Loss After Early Exit From EV Programs

Stronger cash generation with margin gains points to improving operations despite a write-down that pushes the year into the red.

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Der Autozulieferer ZF hat angesichts mangelnder Nachfrage mehrere E-Fahrzeug-Projekte gestrichen. ZF habe sich "mit verschiedenen Kunden darauf geeinigt, mehrere Projekte vorzeitig zu beenden", erklärte das Unternehmen.

Overview

  • ZF says it agreed with several customers to end multiple projects early, triggering a one-off charge that will result in a bookkeeping loss for 2025.
  • The company did not disclose the size of the loss, framing the charge as a clean-up of unprofitable commitments tied to a slower electric-vehicle rollout.
  • Preliminary figures indicate an adjusted EBIT margin significantly above 4% for 2025 and adjusted free cash flow above €1 billion, enabling faster-than-planned debt reduction by year-end.
  • Operational performance in the Electrified Drivetrain division has improved and remains on the restructuring plan, which continues through 2026 after a workforce pact reached in autumn 2025.
  • ZF is pursuing more than €500 million in cost savings by 2027 and plans up to 14,000 job cuts in Germany by end-2028, including 7,600 roles in the drivetrain unit, following a 2024 loss just over €1 billion.