ZF Reports Revenue Dip but Profit Gains in H1 2026; Plans 11,000–14,000 Job Cuts in Germany by End of 2028

ZF reported first-half 2026 revenue of €19.3 billion, down 2% year-over-year. Adjusted EBIT rose 13% year-over-year, with the adjusted EBIT margin improving from 4.3% to 5.0%. Adjusted free cash flow reached €989 million, up 113% compared to the same period last year. The profit improvement was primarily driven by cost reductions, including a 6.9% cut in R&D expenses and a 19% reduction in fixed costs. The company reduced its workforce by nearly 3,500 employees in the first half, over 2,100 of whom were based in Germany. ZF plans to cut between 11,000 and 14,000 jobs in Germany by the end of 2028. As of June 30, 2026, ZF’s net debt stood at €9.841 billion, down from €10.217 billion at the end of 2025, and its leverage ratio decreased from 2.98 to 2.75. The company is currently divesting its passenger car ADAS business, with the transaction expected to close in the second half of 2026. Additionally, ZF has entered the supply chain for electric steering and driveline systems for Europe’s next-generation main battle tanks and armored vehicles.