Deutsche Bahn returns to profit with €147m H1 surplus, first since 2019, but punctuality still lags

Financial turnaround

Deutsche Bahn reported a net profit of €147 million for the first half of 2026, its first positive result since 2019. The figure marks a swing of more than €900 million from the €760 million loss recorded in the same period last year. Revenue rose 1.8 percent to €13.6 billion, while passenger numbers climbed by the same margin to around 960 million journeys. Operating profit (EBIT) improved by €650 million to €415 million. Net debt, however, increased by roughly €1 billion to €21.6 billion as investment spending continued to rise.

For the first time in seven years, our railway business is back in the black. I am very pleased about this important milestone, but I will only be satisfied when the quality of daily rail operations is convincing.

Restructuring and cost cuts

The improvement was driven by a group-wide restructuring programme, which includes cost reductions and job cuts in corporate management and internal services. The company said the downsizing is ahead of schedule: the target set for 2028 is already 30 percent achieved. Under the "DB 2035" strategy, the group is being made leaner and more decentralised, with greater responsibility pushed to local managers who will be measured against their financial results. All business segments either held or improved their operating results in the first half, the company stated.

Segment performance

Long-distance services (DB Fernverkehr) swung to an operating profit of €148 million, compared with a loss of €59 million a year earlier. Ticket sales picked up from April, helped by promotional fares; 600,000 passengers used a last-minute offer and more than 50,000 free youth BahnCards were ordered. Regional services (DB Regio) earned €89 million, with commuter demand rising as high fuel prices prompted a shift from cars to trains. The freight division, DB Cargo, remained the weak spot, posting a loss of around €1 million, though that was an improvement of €96 million. Weak demand from the steel, chemicals and automotive industries continued to weigh on the unit. The EU Commission is also watching the division's performance closely.

Quality and punctuality still lagging

Despite the financial gains, operational performance remains poor. Only 59 percent of long-distance trains arrived less than six minutes late, and 76 percent were delayed by less than 15 minutes. The condition of the rail network, which is being upgraded with billions of euros in annual investment from the company and the federal government, has not yet improved. The network's condition grade did not change in the latest assessment. Palla estimated it will take another ten years before rail services are reliable and stable again.

Political pressure

The results come shortly after a change at the transport ministry. The new federal minister, Steffen Bilger of the CDU, described the figures as pleasing but insisted on faster progress on punctuality. He announced he would meet Palla and trade union leaders later on Thursday. The previous minister had left the post amid ongoing criticism of the railway's performance, making the profit a welcome piece of good news for the new leadership.