photo: trainphotographyde / Flickr / CC BY-NC 2.0/DB train in Frankfurt am Main
Deutsche Bahn’s 2025 half-year results show improvement, but the real test lies ahead: delivering on a three-year modernisation plan while defending rail’s future in Europe’s evolving transport framework.
Germany’s national rail operator Deutsche Bahn (DB) has reduced its losses significantly in the first half of 2025 but still faces steep challenges ahead. While the results are stronger than in the same period last year — when the company posted a EUR 1.6 billion loss — this year’s EUR 760 million shortfall shows the scale of DB’s ongoing structural crisis. The company is relying on a multi-year restructuring programme through 2027 to deliver improvements in infrastructure, operations, and financial stability.
DB reported revenues of EUR 13.3 billion, marking a 3.4% year-on-year increase, while operating losses before interest and tax (EBIT) stood at EUR 239 million. Passenger numbers continue to rise, while freight volumes remain in decline.
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Three-Pronged Recovery Plan to Tackle Rail’s Structural Crisis
Germany’s rail network has been burdened by insufficient infrastructure, punctuality issues, and long-standing economic inefficiencies. To address this, DB is executing a broad recovery strategy targeting its most congested rail corridors, with around 40 routes set for complete overhaul by the end of 2027. "We are committed to a full-scale restructuring of the Group’s finances, infrastructure, and operations by the end of 2027," said Richard Lutz, Chairman of the Management Board and CEO of DB AG.
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Lutz described the half-year results as encouraging and pointed out the company’s ongoing construction activity. He acknowledged, however, that operational challenges remain. Financially, he said DB is in a more stable position than at the start of the year, with ambitions to exit the red and return to operational profitability by the end of 2025. The improvement is attributed to strict cost discipline and an increase in federal funding for infrastructure. DB is also continuing its recruitment drive, aiming to hire over 20,000 new employees in 2025, including 5,700 young professionals.
DB transported 919 million passengers in H1 2025, a 5% increase. However, long-distance travel declined by 4%. In freight, the downward trend continues, with transported volume dropping by 10%, or 7% in tonne-kilometres. Meanwhile, the divestment of DB Schenker is progressing, as previously reported by RAILTARGET. All proceeds from the sale will remain within DB Group to assist with debt reduction.
DB Pushes for Favourable EU Framework on Combined Transport
DB’s financial report also focuses on EU-level developments, particularly the upcoming directive on combined transport, which DB is closely monitoring. The European Commission’s proposal calls for harmonised emissions reporting across transport modes and defines combined transport as any form that produces at least 40% fewer external costs than road freight. EU Member States would be required to develop national strategies to reduce the average cost of combined transport by 10%. Additional legal measures are expected to clarify how external costs will be calculated and monitored via digital platforms.
DB is also closely watching potential revisions to the directive on cross-border operation of gigaliners — extended trucks that could be allowed to operate 90 cm longer and up to 4 tonnes heavier if zero-emission. The Commission aims to phase out fossil-fuel-powered heavy goods vehicles by 2035, with transitional allowances until end-2034 for combustion-engine vehicles. DB has voiced concerns that these proposals could lead to a modal shift away from rail, undermining efforts to meet climate targets.
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Despite outlining extensive modernisation and digitisation efforts, the report notably makes no mention of the Digital Automatic Coupler (DAC) — a key element in Europe’s freight rail digitalisation agenda.
DB InfraGo and the Corridor-Based Modernisation Push
A major development in DB’s infrastructure efforts is the internal reorganisation through DB InfraGo, the newly formed infrastructure company. A flagship project is the complete rehabilitation of a 70-kilometre corridor between Frankfurt (Main) and Mannheim, representing the first full-scale corridor overhaul under the new approach, which RAILTARGET has covered in detail.
Source: Deutsche Bahn