Railroad incurs billions in losses, instead of generating profits
Deutsche Bahn, Germany's national railway company, has reported a significant improvement in its financial performance for the first half of 2025. According to the company's upcoming half-year results, which will be officially published on Thursday, the net loss has decreased substantially from around €1.6 billion in H1 2024 to a net loss of approximately €760 million in H1 2025.
The company's revenue also saw a boost, increasing by 3.4% to €13.3 billion. However, the operating loss before interest and taxes (adjusted EBIT) remained at €239 million, reflecting some progress but indicating that the company remains unprofitable.
To address infrastructure issues and financial challenges, Deutsche Bahn is implementing a comprehensive restructuring and renovation program focused on three key areas: infrastructure, operations, and finances, with improvements targeted by the end of 2027.
Infrastructure Overhaul
This includes a major renovation of about 40 heavily used rail lines, starting with the critical Berlin-Hamburg route scheduled for a nine-month closure from August 1, 2025. The company aims to overhaul aging infrastructure that is currently struggling to handle rising traffic. After the renovation of the Hamburg-Berlin route, further general overhauls are likely to be necessary, with four planned for 2026.
Cost-Saving Measures
Cost-saving measures include a reduction of about 10,000 jobs by 2027, primarily in administrative and sales departments, with a planned 20% cut in these areas. Deutsche Bahn also plans to sell its logistics subsidiary DB Schenker to reduce its high debt load.
Despite these efforts, the freight division DB Cargo continues to face significant losses, and punctuality and passenger experience remain problematic. In June 2025, only 57.1% of long-distance trains arrived on time, exceeding the Bahn's goal of a punctuality quota of 65 to 70% for the entire year.
Challenges Remaining
Infrastructure aging and insufficient for traffic, ongoing punctuality and passenger experience issues, and DB Cargo's financial struggles remain significant challenges for Deutsche Bahn. The punctuality of the Bahn is unlikely to improve significantly after the renovation of the Hamburg-Berlin route.
In summary, these comprehensive steps indicate Deutsche Bahn’s efforts to stabilize finances and modernize infrastructure amid longstanding challenges. The renovation program aims to improve the Bahn's punctuality, operations, and finances, with the ultimate goal of increasing passenger satisfaction.
| Aspect | Details | | -------------------------------|-------------------------------------------------------| | Financial Improvement | Loss narrowed from €1.6 billion (H1 2024) to €760 million (H1 2025); revenue up 3.4% to €13.3 billion; operating loss €239 million[1][2] | | Infrastructure Renovation | Renovation of ~40 major rail lines through 2027; Berlin-Hamburg route closed 9 months starting Aug 2025 for overhaul[1][2] | | Cost-saving Measures | Cutting 10,000 jobs by 2027 (mainly administration, sales); selling DB Schenker to lower debt; restructuring freight operations[3] | | Challenges Remaining | Infrastructure aging and insufficient for traffic; ongoing punctuality and passenger experience issues; DB Cargo financial struggles[1][3] |
[1] dpa [2] Reuters [3] DB Spokesperson
The comprehensive restructuring and renovation program of Deutsche Bahn includes improvements not only in infrastructure but also in finances, with the aim of increasing passenger satisfaction. The company's financial performance has shown significant improvement, however, the freight division DB Cargo continues to face significant losses and punctuality remains problematic.
In an effort to address infrastructure issues and reduce costs, Deutsche Bahn is undertaking cost-saving measures such as job reductions in administrative and sales departments, and the sale of its logistics subsidiary DB Schenker. Additionally, the company is renovating about 40 heavily used rail lines, starting with the Berlin-Hamburg route.
[Source]dpaReutersDB Spokesperson
