German auto supplier ZF keeps outlook as restructuring lifts H1 earnings

BERLIN, July 30 (Reuters) - ZF Friedrichshafen, one of the world's largest auto parts suppliers, said on Thursday its profitability improved in the first half of 2026 as cost-cutting and restructuring measures began to bear fruit.

• Adjusted earnings before interest and tax (EBIT) rose to €964 million from €853 million a year earlier, with the margin improving to 5.0% from 4.3%.

• "Cost discipline, combined with a focus on improved operational performance and value-adding products, is beginning to take effect," said CEO Mathias Miedreich.

• The unlisted company based in southern Germany maintained its outlook for 2026, saying it remained on track to exceed €38 billion in annual sales and achieve an adjusted EBIT margin within its target range of 4.0% to 5.0%.

• ZF employed 149,675 people worldwide at the end of June, down from 153,153 at the end of 2025, it said.

• Adjusted free cash flow was at €989 million, more than double the €465 million a year earlier.

• ZF has been cutting costs and restructuring operations amid a prolonged downturn in parts of the automotive market and pressure on suppliers from the electric vehicle transition.

(Reporting by Ilona Wissenbach and Miranda Murray, editing by Thomas Seythal)