Deutsche Bahn Reports Financial and Operational Progress

Deutsche Bahn (DB) has reported notable progress in its restructuring efforts during the first half of 2025, with its operating loss reduced by almost one billion euros (986 million EUR) year-on-year. This improvement reflects increased cost discipline, administrative streamlining, and a revised funding structure for infrastructure maintenance, including a shift of advance payments from DB to direct federal government funding. Excluding the divested logistics subsidiary DB Schenker, the DB Group recorded an adjusted revenue increase of 3.4% to 13.3 billion EUR. Despite this, ongoing infrastructure problems, including a high number of construction sites and related service disruptions, continued to affect long-distance punctuality, which stood at 63.4% (up from 62.7% in the same period of 2024). Deutsche Bahn makes progress with its restructuring program: Operating result improved by almost one billion euros © Deutsche Bahn The overall result after tax was a loss of 760 million EUR, significantly improved from a loss of 1.6 billion EUR in the first half of 2024. Including the proceeds from the Schenker sale, the result after tax was 6.9 billion EUR. Passenger demand remained high. Around 943 million passengers used DB services in the first six months of the year, up from 919 million in the same period last year. Rail passenger transport performance increased by nearly 4% to 41.9 billion passenger kilometres. DB also continued to implement its ‘S3’ restructuring programme, launched in mid-2024, with a focus on infrastructure, operations, and profitability. DB CEO Richard Lutz said: We have made significant progress in our S3 restructuring program, especially in the area of profitability. The DB Group is now on much more stable financial footing than it was at the beginning of the year. Our strict cost discipline is paying off. We are making progress step by step. Infrastructure renewal remains central to DB’s strategy. The general refurbishment of the Riedbahn line between Frankfurt/Main and Mannheim, completed in December 2024, led to a 60% reduction in infrastructure-related disruptions in the first six months post-renovation. Condition ratings for the line also improved, reflecting technical upgrades. DB’s infrastructure subsidiary, DB InfraGO, replaced 40 outdated signal boxes in the first half of 2025 and reduced the number of slow-speed sections by an average of 70 per day. A total of 157 stations were also modernised, exceeding the planned target by 16. InfraGO is allocating an additional 350 million EUR to maintenance in 2025 and plans to carry out approximately 1,000 extra infrastructure improvement projects. These include early upgrades to diversion routes and better coordination of driving and construction activities to reduce service disruption. Improvements to construction scheduling at major transport hubs such as Frankfurt and Cologne are also planned. Financial and Operational Performance by Segment DB InfraGO saw train-path kilometres increase by about 1% to 554 million. Revenue rose by 232 million EUR to 4.3 billion EUR, while its adjusted EBIT was minus 204 million EUR, impacted by delays in federal maintenance payments following changes in funding arrangements. DB Long-Distance achieved a 5% increase in transport performance to 21.9 billion passenger kilometres, a record for the first half of any year. Nevertheless, operational disruptions discouraged some business travellers, limiting revenue growth. Despite this, customer satisfaction improved modestly to a rating of 2.5 out of 5. Cost savings led to a marked improvement in the segment’s adjusted EBIT, narrowing the loss to 59 million EUR from 232 million EUR in the first half of 2024. DB Regio recorded 23 billion passenger kilometres, up 2% year-on-year, and achieved a 7% increase in revenue. Following losses in the same period last year, DB Regio returned to profit with an adjusted EBIT of 103 million EUR. DB Cargo, the freight division, transported around 83 million tonnes of goods, 10% less than in the previous year, due to economic conditions and the deliberate exit from unprofitable contracts. Revenue declined by 9% to 2.5 billion EUR. However, its operating loss improved by 165 million EUR to minus 96 million EUR. Staffing and Recruitment DB reduced its workforce to 205,000 full-time employees by the end of June 2025, exceeding its target for the year under the S3 programme. Administrative and sales roles saw the greatest reductions. Meanwhile, recruitment for operational roles continues, with DB planning to hire over 20,000 new employees in 2025, including 5,700 junior staff. Outlook for the Second Half of 2025 DB now plans to maintain momentum across all three pillars of the S3 programme: Infrastructure: The general renovation of the Berlin-Hamburg line is scheduled to begin in August. DB is also preparing further corridor renovations and evaluating a potential extension of the modernisation framework through 2036. Operations: DB InfraGO aims to improve scheduling coordination to reduce the impact of construction works on services. Long-distance services will continue fleet renewal efforts. Profitability: DB’s transport companies will continue to focus on cost control and structural changes. DB Fernverkehr aims to reach profitability, while DB Cargo is working towards breaking even by the end of 2026, in line with European Commission expectations.