Finance
Deutsche Bahn to return to profit this year and next, say sources
Published by Global Banking and Finance Review
Posted on December 4, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 4, 2025
2 min readLast updated: January 20, 2026
Deutsche Bahn plans to return to profit in 2024 under CEO Evelyn Palla, focusing on infrastructure upgrades and cost reductions.
BERLIN, Dec 4 (Reuters) - German rail operator Deutsche Bahn, dogged by under-investment and delayed train services, is set to return to operating profit this year and next under its new CEO, according to sources close to the state-owned company.
Following more than a decade of under-investment, state-owned Deutsche Bahn has started upgrading its tracks, crossings and overhead lines and cutting administrative costs, a process that has caused major delays and cancellations nationwide.
The positive outlook also comes as CEO Evelyn Palla, who took the reins on October 1, is tasked with turning it around.
The supervisory board is set to meet next Wednesday, after which Palla is expected to present her restructuring strategy for the company, with significant job cuts anticipated.
Deutsche Bahn declined to comment.
The company forecasts slightly positive earnings before interest and taxes (EBIT) for 2025, after a loss of 333 million euros ($388 million) last year, with EBIT expected to increase to 500 million euros in 2026, the sources said.
Deutsche Bahn also aims to shrink its net loss to 180 million euros next year from around 820 million expected this year, while revenue is expected to remain stable at about 28 billion euros next year.
($1 = 0.8579 euros)
(Report by Markus Wacket and Christian Kraemer. Editing by Mark Potter)
Operating profit is the income generated from normal business operations, excluding any income derived from non-operational activities such as investments or sales of assets.
EBIT stands for Earnings Before Interest and Taxes. It measures a company's profitability from operations before accounting for interest and tax expenses.
A restructuring strategy involves reorganizing a company's structure or operations to improve efficiency, reduce costs, and enhance profitability.
Under-investment occurs when a company fails to allocate sufficient resources to maintain or grow its operations, which can lead to inefficiencies and decreased performance.
Administrative costs are expenses related to the general management and administration of a business, including salaries, office supplies, and utilities.
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