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German automotive supplier ZF Friedrichshafen AG returned to profitability in the first half of the year, posting a net income of 122 million euros according to Chief Financial Officer Michael Frick. The result marks a sharp reversal from the same period last year, when the company recorded a net loss of 195 million euros, driven by restructuring costs and a challenging market environment for components ranging from transmissions to safety systems.
Vorstandsvorsitzender Mathias Miedreich attributed the earnings rebound to strict cost discipline, improved operational execution, and a sharpened strategic focus on high-margin product lines. The company reported that adjusted operating earnings (EBIT) rose by 111 million euros to 964 million euros during the first six months of the year, despite total revenue dipping two percent to 19,3 billion euros due to currency effects and portfolio adjustments.
Debt Reduction and Strategic Re-evaluations
Despite the return to profit, ZF continues to manage a high debt load stemming largely from major historical acquisitions, including brake specialist Wabco and automotive supplier TRW. Total debt stood at 9,8 billion euros at the close of the first half, down from 10,5 billion euros recorded in the first half of 2025, according to financial disclosures.
As part of its ongoing efforts to optimize capital and accelerate debt repayment, management previously prepared the former Passive Safety Systems division—now operating as the subsidiary ZF Lifetec—for a potential sale. However, CFO Michael Frick announced that the company has altered course. ZF Lifetec will remain fully owned by ZF for the foreseeable future, as the subsidiary continues to generate profits with strong potential for further growth under current ownership structures.
Restructuring and Workforce Impact
To secure long-term competitiveness amid the costly transition toward electric mobility and depressed vehicle production volumes across Europe, ZF is pressing ahead with deep structural cuts. The company aims to eliminate up to 14.000 jobs in Germany by the end of 2028, representing roughly one-quarter of its domestic workforce.
Global headcount stood at 149.675 employees as of June 30, marking a decrease of 3.478 positions compared to the end of 2025. In Germany, staff numbers dropped by more than four percent to just over 47.000 workers. ZF, which is 93.8 percent owned by the Zeppelin-Stiftung foundation administered by the Mayor of the City of Friedrichshafen, confirmed its full-year guidance, projecting total revenue to exceed 38 billion euros.
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