(Berlin, March 27, 2025) Following an operationally challenging year, Deutsche Bahn Group (DB Group) finished out the 2024 financial year with an operating loss (adjusted EBIT) of EUR -333 million. DB Group was able to significantly reduce its operating loss compared with the previous year, by about EUR 1.8 billion, partly thanks to funding from the German Government for infrastructure maintenance. Net loss for the year (after taxes) was EUR -1.8 billion (2023: EUR -2.7 billion). Revenues, at EUR 26.2 billion, remained roughly on the level of the previous year (up 0.4%).
All figures for the 2024 financial year refer to DB Group excluding its logistics business unit DB Schenker, which is to be sold, and the European local transport subsidiary DB Arriva, which was sold in May 2024.
DB Group's economic development in 2024 was affected primarily by the poor condition of the infrastructure. The quality of operations, with a punctuality of 62.5% in long distance service (2023: 64.0%), put additional pressure on the bottom line. Strikes by the German Train Drivers' Union (GDL) in the first quarter of 2024 and the weak economy, particularly on rail freight transport, also had a negative impact. Some 1.9 billion passengers took DB Group's trains in 2024 – a year-on-year increase of 1.6%. Volume sold in rail passenger transport rose 2.1% to some 85 billion passenger kilometers, bolstered by the Germany-Ticket in regional transport.
DB Group began implementing its S3 restructuring program in the second half of 2024 to fundamentally improve infrastructure, rail operations and profitability until 2027. S3 aims to restore rail's performance capability, to significantly improve customer experience and to return to profitability.
"Deutsche Bahn is facing its most serious crisis since the German Rail Reform. We are far from achieving our goals and far from meeting our customers' expectations in key areas," said Dr. Richard Lutz, Chairman of the Management Board and CEO. "To overcome this crisis, we have launched S3, a comprehensive restructuring program to improve DB's infrastructure, rail operations and profitability. We're already seeing first results. Our bold new approaches and discipline when it comes to implementation are paying off. The general modernization of the Riedbahn (Frankfurt–Mannheim) was a success, and for the first time we were able to prevent the infrastructure from deteriorating further. Thereby we have initiated the turnaround," Lutz added.
Including the significantly increased Government funding in particular, DB Group invested record sums – about EUR 18.2 billion – in 2024, primarily in the infrastructure. The DB-financed net capital expenditures in the core business rose 11.3% year-on-year to EUR 5.9 billion.
Results in DB Group's core business
DB InfraGO, DB Group's infrastructure unit, completed the first general modernization in the highly utilized network on time in December 2024, when it finished work on the Riedbahn between Frankfurt and Mannheim. Train kilometers on track infrastructure fell slightly, by 1.3%, to 1.1 billion train-path kilometers, due primarily to the high level of construction. DB InfraGO saw revenues increase slightly year-on-year, by -4%, to about EUR 8.1 billion. At EUR 226 million, adjusted EBIT returned to the black in 2024 (2023: roughly EUR -1.2 billion) due to the implemented Government funding for maintenance expenses.
At DB Long-Distance, volume sold was down 3% year-on-year (at 44.1 billion passenger kilometers) due to a lower punctuality, which in turn was caused by the incident-prone infrastructure, construction-related restrictions and strikes. Revenues were down by about EUR 50 million from the previous year. Despite countermeasures, the operating loss increased year-on-year from EUR -43 million to EUR -96 million. DB Group continued its efforts to modernize its long-distance fleet in 2024 and received the last of in total 137 new ICE 4 trains among others. Customer satisfaction remained stable despite the difficult operational conditions.
The economic situation at DB Regional improved. Thanks in part to the Germany-Ticket, DB Regional recorded a significant operating profit in 2024, with an adjusted EBIT of EUR 108 million, after an operating loss in 2023.
DB Cargo continued its comprehensive transformation in 2024. The weak economy led to lower demand in energy-intensive manufacturing industries, such as automotive and steel, and lower demand for intermodal transport, which had a negative impact. DB Cargo carried about 180 million tons of freight in 2024, 9% less than in the previous year. Volume sold fell 7.9% to about 68.5 million ton kilometers. Revenues at DB Cargo were down 3.2% year-on-year in 2024.
The restructuring measures undertaken helped DB Cargo to considerably improve its adjusted EBIT by EUR 140 million. Nevertheless, it remained under significant economic pressure, with an operating loss of EUR -357 million. The European Commission ended investigations against the Federal Republic of Germany regarding state aid for DB Cargo AG in November 2024 with conditions, including that DB Cargo must return to profitability by the end of 2026.
DB Schenker, due to its expected sale, is shown under discontinued operations along with DB Arriva in the 2024 Integrated Report. The previous year's figures were adjusted accordingly for comparability. The sale of DB Schenker is expected to close this year once all regulatory approvals have been received. DB Schenker generated an operating profit (adjusted EBIT) of over EUR 1 billion again in 2024.
DB Schenker sale will reduce indebtedness, CFO Holle says
"The sale of DB Schenker will reduce our indebtedness and interest burden. This will allow us to concentrate better on our core business of rail operations," Dr. Levin Holle, DB's CFO, said.
Net financial debt of DB Group (including DB Schenker) as of December 31, 2024, was down EUR 1.4 billion year over year to EUR 32.6 billion. By selling DB Arriva and DB Schenker, DB Group is focusing on its core business in Germany. It will reduce the number of subsidiaries by over 60% compared with 2023.
Using short and medium-term countermeasures, DB Group saved EUR 300 million in operating expenses through a strict spending monitoring and control program. In addition, it reduced its staffing levels in sales and administration by about 1,000 employees. By the end of 2027, it aims to reduce its workforce by about 10,000 compared with 2024 levels, primarily in administration.
In 2024, DB Group also made progress toward becoming climate-neutral. It increased the share of renewable energy in its traction current mix from 68.0% in 2023 to 69.8% in 2024. It also reduced absolute greenhouse gas emissions by 17.9%, from 12.3 million tons of CO2e in 2023 to 10.1 million tons of CO2e in 2024. DB Group's climate protection targets were reviewed and certified by the internationally renowned Science Based Targets initiative (SBTi) in March 2025.
Outlook
This year DB Group is focusing on attaining the targets it set in the S3 restructuring program and on improving its operating performance.
It plans to increase the already high level of capital expenditures, particularly for a more performance-capable infrastructure. DB Group expects gross capital expenditures together with the German Government of more than EUR 20 billion in 2025. DB-financed net capital expenditures are expected to grow to more than EUR 6 billion.
Looking at the infrastructure column of the S3 restructuring program, following the recommissioning of the Riedbahn (Frankfurt–Mannheim) in December 2024, two highly frequented corridors – between Hamburg and Berlin and between Emmerich and Oberhausen – will now undergo a general modernization this year.
In the operations column, DB Group is introducing a new construction management system throughout the rail network: A construction cycle system, which schedules maintenance work, currently about 80% of it, within designated construction windows in the timetable. In long distance rail transport, DB Group intends to continue to significantly reduce vehicle malfunctions in 2025. These measures should bring the punctuality for long distance service up to 65% to 70%. To become more profitable, DB Group is pressing ahead with staff reductions, particularly in administrative functions.
DB Group expects its revenues to grow to more than EUR 27 billion in 2025. DB Group expects to be profitable again, with a positive adjusted EBIT. Net financial debt is expected to decrease to between EUR 26 billion and EUR 28 billion.
All forecasts will depend on factors such as the uncertain geopolitical situation and the inflow of Government funds, in particular for rail infrastructure maintenance.