Auto provider ZF stories a lack of 2.1 billion euros | EUROtoday

The automotive provider ZF slipped even additional into the purple final 12 months, primarily attributable to a particular impact throughout the group restructuring. The loss doubled to 2.1 billion euros in comparison with the earlier 12 months, as the corporate in Friedrichshafen on Lake Constance introduced. The group was already within the purple in 2024. At that point the loss was simply over a billion euros.

“The write-offs of unprofitable projects have a one-off effect on our balance sheet for 2025. But this way we are taking stones out of our backpack for advancement in the coming years,” stated ZF boss Mathias Miedreich. ZF has made operational progress. The adjusted working end result (EBIT) rose from round 1.47 billion euros to round 1.75 billion euros.

The group stays closely indebted

Nevertheless, the group stays closely indebted. ZF lowered its monetary liabilities by 250 million euros final 12 months. However, there stays web debt of 10.2 billion euros.

In addition, the fairness ratio fell by greater than 5 share factors to 13.3 % in 2025. The fairness ratio is without doubt one of the key indicators of an organization’s monetary stability.

ZF is without doubt one of the world’s largest automotive suppliers. The group is 93.8 % owned by the Zeppelin Foundation, which is led by the mayor of town of Friedrichshafen. Like many others, the corporate is affected by the weak economic system and low demand – particularly for electrical automobiles.

The ZF Group was in a position to generate 38.8 billion euros in income final 12 months. This is a lower of round six % or 2.6 billion euros in comparison with the earlier 12 months. “We don’t see any significant recovery in demand,” stated CFO Michael Frick, in response to the assertion. It is essential to outlive in a scenario with out vital market development.

In the approaching years, ZF plans to chop as much as 14,000 jobs in Germany. According to the announcement, the group employed 153,153 individuals worldwide on the finish of 2025 – round 5 % fewer than within the earlier 12 months. In Germany, the variety of workers additionally fell nominally by round 5 % to simply over 49,000. This signifies that ZF is on monitor to chop jobs.

ZF does probably not count on the scenario to enhance within the present monetary 12 months. If trade charges stay secure, the group expects gross sales of over 38 billion euros for 2026. “We will work our way back to profitability step by step,” stated CEO Miedreich.