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ZF Returns to Profit After Cost Cuts

The turnaround shows the business can regain profitability through savings rather than asset sales.

Overview

  • ZF posted a small net profit of €122 million for the first half of 2026, with adjusted EBIT of €964 million, an adjusted margin of 5 percent, and nominal revenue of €19.3 billion.
  • Management says a strict savings program and a shift to higher‑margin products drove the improvement by renegotiating contracts and exiting unprofitable projects.
  • Net debt fell to about €9.8 billion from €10.5 billion a year earlier, and reducing that debt while cutting investments is a top priority for the CEO.
  • ZF has decided not to sell its airbag and passive safety unit ZF Lifetec for now, calling the division profitable with attractive growth potential.
  • The company will continue structural changes that include up to 14,000 job cuts in Germany through 2028 and board-level reassignments, moves that will shape staffing and investment plans going forward.