German railway posts first core business profit in seven years

German national rail operator Deutsche Bahn posted a profit in its core business in the first half of 2026 for the first time in seven years, the company announced on Thursday.

The state-owned group reported a net profit of €147 million ($167 million) compared to a loss of €760 million posted in the first half of 2025. The company said operating profit improved by €650 million to €415 million.

"For the first time in seven years, our rail business is back in the black," said Deutsche Bahn chief executive Evelyn Palla in a statement. 

However, she added that she would only be satisfied "when the quality of day-to-day rail services is also up to scratch".

Deutsche Bahn cited an ongoing restructuring programme as the reason for the improved result. The programme includes cost-cutting measures and staff reductions within the Group's executive management and among internal service providers. 

As part of the restructuring, the railway operator is also set to become more decentralized by delegating more responsibility to the regional level, while ensuring that local managers are then clearly assessed against their performance figures.

"All of DB's business areas maintained or improved their operating results in the first half of 2026," the railway company said. At the same time, Group investments rose sharply once again compared with the first six months of 2025.

Deutsche Bahn has struggled with poor punctuality, ageing infrastructure and weak financial performance in the past few years. It reported a net loss of more than €1 billion in 2025.