(Friedrichshafen, Germany) ZF Group posted sales of €28.9 billion in the first three quarters of 2026, flat year-on-year. Despite prolonged weakness in the global passenger car market, the group delivered 1.4% organic sales growth. Adjusted EBIT rose from €1.0 billion to €1.4 billion, lifting the adjusted EBIT margin from 3.6% to 4.9%. Adjusted free cash flow expanded from €683 million to approximately €1.1 billion.

ZF's performance improvement programme continued to drive profitability. In the first nine months, adjusted EBIT climbed by €368 million year-on-year to €1.4 billion. The adjusted EBIT margin reached 4.9%, hitting the upper end of the company's full-year guidance range of 4.0%–5.0%.

 

Adjusted free cash flow increased by €411 million year-on-year to around €1.1 billion, primarily driven by improved operating results and sustained disciplined capital spending.

 

As of 30 September 2026, ZF's net debt fell by roughly €130 million compared with the end of 2025. The leverage ratio declined from 2.98 times to 2.61 times.

 

Mid-September, amid volatility in capital markets, ZF issued a €750 million bond with a tenor of 4.5 years and a coupon rate of 5.750%. The company intends to use the proceeds to redeem early certain euro bonds originally maturing in 2027 and 2028. The recent upgrade of ZF's rating outlook by Moody's and S&P Global Ratings has further boosted investor confidence.

 

Michael Frick, ZF's Chief Financial Officer, commented: "We are making tangible progress. Profitability and free cash flow have improved, and our leverage ratio has come down. This bond issue enables us to proactively address upcoming debt maturities and further solidify our financial strength. Nevertheless, market conditions remain tough, and we still have much work ahead. We will press ahead with business restructuring, cost and debt reduction, and accelerate the execution of our plans. These measures are essential to translate ZF's strong technological capabilities into sustainable commercial success."