Railway experiences a triple-digit million deficit in the first portion of the year
Deutsche Bahn, Germany's national railway company, is making significant strides in its turnaround program, aimed at improving infrastructure, operations, and finances by the end of 2027.
In the first half of 2025, the company's revenue increased by 3.4 percent to 13.3 billion euros. However, the operating loss before interest and taxes (adjusted EBIT) was 239 million euros. Despite this, the company's financial situation is showing signs of improvement, as its loss in the first half of 2025 was less than the loss of 1.6 billion euros in the same period of 2024.
One of the key aspects of Deutsche Bahn's turnaround program is the modernization of its infrastructure. A significant step in this direction is the major track modernization between Berlin and Hamburg, which commenced on August 1 and is expected to last for nine months. This renovation, considered the first real test of the construction concept due to the track's length and challenging diversion options, is part of Deutsche Bahn's comprehensive turnaround program.
The group's long-distance traffic has also shown significant improvement. Traffic performance, occupancy, revenue, and results (EBIT) all improved compared to the previous year. This progress is supported by ongoing infrastructure projects, as evidenced by the €170 million rail infrastructure modernization contract awarded to construction firm HOCHTIEF in H1 2025.
Associated infrastructure groups, such as HOCHTIEF and ACS, have reported strong financial results, reflecting positive momentum in rail infrastructure demand. HOCHTIEF reported an 18% increase in operational net profit to €355 million and a 29% (FX-adjusted) growth in group sales to €18.4 billion in H1 2025. ACS Group, the parent company combining HOCHTIEF and others, delivered a 28.6% sales increase to €24.1 billion and a 17% rise in ordinary net profit to €392 million in Q2 2025.
The turnaround program includes the renovation of around 40 heavily used tracks. The renovation of the Hamburg-Berlin line is not expected to meet Deutsche Bahn's target for the entire year, which is a punctuality rate of 65 to 70%. In June 2025, only 57.1% of long-distance train stops were on time, with a maximum delay of 5:59 minutes.
It's important to note that this renovation is not the first, as renovations between Frankfurt and Mannheim have already taken place. The next major renovation on a Deutsche Bahn line is not yet specified.
Other divisions of Deutsche Bahn, such as DB Regio and DB Cargo, have also improved their results in the first half of 2025. Despite the ongoing challenges, Deutsche Bahn is actively progressing with its turnaround efforts and infrastructure upgrades.
In summary, Deutsche Bahn is engaged in rebuilding and modernizing its rail infrastructure as part of its turnaround program, with positive indicators from partner firms' financial results signaling sector recovery and investment. The company's target for the entire year is a punctuality rate of 65 to 70%, and it continues to make strides towards this goal.
The turnaround program of Deutsche Bahn, Germany's national railway company, extends beyond rail infrastructure to include financial improvement. In the first half of 2025, despite an operating loss, the company's financial situation showed signs of improvement compared to the same period of 2024.
The irrigation of funds into public-transit infrastructure, such as the rail infrastructure modernization contract awarded to HOCHTIEF, is not only revitalizing Deutsche Bahn's own systems but also impacting the financial performance of associated industry giants like HOCHTIEF and ACS.
