Railroad suffers triple-digit million deficit during initial half of the year
Deutsche Bahn, Germany's national railway company, is embarking on a significant transformation journey aimed at improving infrastructure, operations, and finance by the end of 2027.
The company's long-distance traffic has shown a marked improvement in the first half of 2025, with a revenue increase of 3.4 percent to 13.3 billion euros compared to the previous year. However, the company incurred a loss of approximately 760 million euros after taxes in the same period. Despite this, traffic performance, occupancy, revenue, and results (EBIT) have all improved significantly compared to the previous year, according to a DB spokesperson.
The restructuring program, particularly within its freight division DB Cargo, is progressing actively. By the end of July 2025, Deutsche Bahn announced plans to cut approximately 5,000 jobs at DB Cargo by 2029. The majority of these reductions, around 2,500, are planned over the next five years through natural attrition and internal labor market measures.
The management restructuring and combined transport outsourcing are ongoing, with infrastructure upgrades such as the construction of a new terminal phase scheduled to begin in autumn 2025, with operations expected to start one year later.
The Berlin-Hamburg route, considered a significant test of the construction concept by rail experts, will be completely closed for nine months as part of the renovation. This renovation, like the one between Frankfurt and Mannheim, is likely to be challenging due to its length and complex detour options. The improvement in punctuality after the renovation of the Hamburg-Berlin route is not expected.
The restructuring program includes renovating around 40 heavily used tracks. The upcoming renovations are crucial for improving the punctuality of Deutsche Bahn's long-distance trains. The company's target is a punctuality rate of 65 to 70 percent for the entire year.
Deutsche Bahn is currently focusing on a comprehensive restructuring program. The Berlin-Hamburg route modernization, set to begin on August 1, is one of the four major renovations scheduled for 2026. The company has been struggling with punctuality issues and poor economic performance, but the renovations are hoped to address these challenges.
In June, only 57.1 percent of long-distance train stops were on time, with a maximum delay of 5:59 minutes. The loss in the first half of 2025 is less than the loss in the first half of 2024, which was 1.6 billion euros.
Despite the challenges ahead, Deutsche Bahn aims to return DB Cargo to profitability by 2026. The company's broader goals include modernizing its fleet and operations, as evidenced by orders for electric buses. However, specific timelines for the entire group's restructuring through the end of 2027 are most concrete for DB Cargo’s freight division and its profitability targets.
[1] Deutsche Bahn Press Release, July 2025 [2] Deutsche Bahn Annual Report, 2024
The restructuring program at Deutsche Bahn extends beyond railway operations, as the company also plans to modernize its fleet with orders for electric buses, venturing into the automotive industry. In the realm of finance, Deutsche Bahn aims to enhance revenue streams and improve profitability, particularly in its freight division DB Cargo, within the broader context of the industry and finance. Moreover, the company's strategic initiatives encompass the development of transportation infrastructure, with construction of new terminals slated to begin in the autumn of 2025.
