ZF Releases H1 Financial Report, Enhancing Overall Competitiveness

On July 31, ZF Group released its first - half financial report, with the performance improvement plan beginning to show results. In the first half of 2025, adjusted EBIT (Earnings Before Interest and Taxes) increased to €874 million (compared to €780 million in 2024), and the adjusted EBIT margin rose to 4.4% (compared to 3.5% in 2024). ZF's sales for the first half of the year amounted to €19.7 billion.

Dr. Holger Klein, CEO of ZF Group, announced the first - half 2025 financial report at the German headquarters on July 31, stating: “ZF is advancing the most comprehensive restructuring plan in its history. We prioritize profitability and competitiveness, and are fully committed to positioning ourselves to meet future challenges. To this end, we are actively responding and accelerating the restructuring process.”

Dr. Klein emphasized that ZF has implemented several key measures in line with the “Strengthening Excellence” strategy launched in 2023. The company is increasing investment in areas with long - term development prospects, such as chassis solutions, commercial vehicles, industrial technology, and after - sales business. To comprehensively improve efficiency in all areas, ZF will integrate the existing passenger and commercial vehicle performance programs into a permanent performance organization covering the entire company, while simultaneously advancing the adjustment of the corporate structure. In addition, the company is conducting capital - cost - coverage assessments for each product group, an initiative that will drive further optimization of product planning.

Continuously Advancing Structural Adjustment

As part of the company's structural transformation, ZF is evaluating various options to create new growth opportunities for its profitable Electronics and Advanced Driver - Assistance Systems (ADAS) division through partnerships or strategic alliances. Dr. Klein noted: “The e - Mobility division requires a targeted restructuring plan to get back on track for development and ensure long - term competitiveness and the ability to meet future challenges.”

Meanwhile, the spin - off of the former Passive Safety division - - ZF LIFETEC - - has been completed, and it is now operating steadily in the market as an independent brand. Given that the conditions for an initial public offering or partnership of ZF LIFETEC are not yet ripe in the current economic environment, ZF will continue to keep all strategic options on the table to ensure its long - term development.

Key Performance Indicators Show Improvement

From January to June 2025, ZF's sales reached €19.7 billion. Adjusted EBIT was €874 million (compared to €780 million in 2024), with an adjusted EBIT margin of 4.4% (compared to 3.5% in 2024), and adjusted free cash flow was €465 million. Michael Frick, CFO of ZF Group, stated: “Thanks to performance optimization and focused investment, our free cash flow has improved significantly compared to the same period last year, increasing by approximately €1 billion. This gives the company much more flexibility.”

Financing Activities Enhance Security

In the first half of 2025, ZF successfully issued bonds totaling €1.25 billion with a term of five years. Frick said: “The bond issue was met with a strong market response, fully demonstrating investors' continued confidence in ZF. The new bonds not only provide stable security for future plans but also buy valuable time for the company's strategic restructuring.”

Asia - Pacific Region Maintains Steady Development in the First Half

Business in the Asia - Pacific region has developed steadily this year. Wang Runyi, Executive Vice - President of ZF Group, President of China, and President of Asia - Pacific Operations, said: “The Chinese market has always been a core strategic market for ZF. In the first half of this year, we not only achieved localization of global advanced technology research and development and mass production but also brought Chinese innovation to the global market. The financial key indicators of the Asia - Pacific region in the first half of the year exceeded the original targets and made an outstanding contribution to ZF's global performance. Every breakthrough confirms the effective implementation of ZF's localization strategy and highlights the high recognition of local customers.”

“Amid the complex and ever - changing global environment, the operation of multinational companies in the Asia - Pacific region, especially in China, must be based on a deep understanding of the market and rapid response, optimization and flexible use of corporate resources, and most importantly, the team's cohesion, creativity, vision, and sense of responsibility. I am proud of our Asia - Pacific family,” Wang Runyi said.

In the passenger car sector, ZF is vigorously promoting the localization and mass production of cutting - edge technology in China. The latest ZF steer - by - wire system equipped on the NIO ET9 was put into mass production in the first quarter of this year. The sMOTION® full - active suspension system is gaining increasing attention from more and more manufacturers. In addition, the injection - molded stabilizer rod link assembly was put into mass production at the Zhangjiagang plant in May this year, and the second global production line for the cross - joint also settled in the Zhangjiagang plant. In the field of e - mobility, the new generation of integrated and component products have recently been put into mass production in China and have successively won orders from Chinese OEMs, amounting to more than €1 billion. In the field of advanced driver - assistance systems, ZF has also launched the latest customizable ADAS solution - - the new - generation L2 ADAS system.

The commercial vehicle sector has also seen frequent good news. In the first half of the year, ZF achieved mass production of the TraXon II transmission in China and globally launched the e - comp Scroll oil - free scroll electric air compressor for the first time. With continuous innovation and localization, ZF is driving the high - quality development of commercial vehicles. Leveraging its advanced technology in braking, steering, transmission, suspension, and ADAS, ZF has won several customer projects in the commercial vehicle sector and secured important export orders from leading bus manufacturers, fully supporting the transformation, upgrading, and overseas strategy of Chinese customers.

In the field of industrial technology, ZF signed strategic cooperation agreements with Sany Group and XCMG Group in the first half of the year, laying a solid foundation for future comprehensive and in - depth cooperation. In addition, the special - purpose transmission product line, with the EcoLife Offroad2 power - shift transmission, has successfully entered the domestic wide - body mining vehicle market and won its first small - batch order, marking a significant breakthrough for ZF in the transmission system field of open - pit mining vehicles.

ZF After - Sales, with its unique positioning, has achieved significant growth in the Asia - Pacific region. In the first half of this year, ZF launched over 2,000 product combinations across four business lines. It is worth mentioning the launch of the ZF Smart Check 001 diagnostic tool, which has built a digital service ecosystem for repair shops in the Chinese market. During the 618 E - Commerce Festival, the ZF brand maintained its leading position in the transmission oil category on major e - commerce platforms such as JD.com, Tmall, Tuhu, and Douyin. Meanwhile, the After - Sales division has also made important expansions in its operational layout, including the relocation and expansion of the Shanghai remanufacturing plant, the launch of the Southeast Asia operation center, and the relocation and opening of new offices in Thailand and Singapore.

Outlook: ZF to Appear at IAA Mobility

Dr. Klein mentioned in his outlook that ZF will participate in the IAA Mobility, the International Motor Show for Automotive and Intelligent Travel, to be held in Munich from September 9 to 12. ZF will showcase its cutting - edge technology at the Munich Auto Show. Located at stand D30 in hall A1, the highlights of the ZF booth include the Chassis 2.0 concept, which relies on ZF's steer - by - wire solution to achieve new software - driven chassis functions through smart, interconnected actuators, eliminating the mechanical connection between the steering wheel and the steering gear or the brake pedal and the brake.

In the field of hybrid and pure - electric drive technology, ZF will introduce the new SELECT electric drive platform, offering car manufacturers a variety of system and component choices. Other highlights include a new - generation range - extending system for electric vehicles to alleviate range anxiety, as well as a concept product based on the popular 8 - speed automatic transmission, which offers higher efficiency and stronger compatibility with various hybrid platforms.