Income development
The economic development of DB Group in 2024 was largely characterized by the poor condition of the infrastructure and the repayment of DB Group’s pre-financings in the previous year for measures to improve the quality and availability of the infrastructure (€ 1.1 billion). Lower losses at DB Cargo and a better performance at DB Regional (largely higher concession fees) as well as the implementation of measures to improve profits in the short and medium term (including strict spending monitoring and control program) had an additional positive effect. By contrast, there were further negative effects, particularly from higher personnel expenses (capacity expansion in operations and collective bargaining effects), strikes (effect on adjusted EBIT: € –0.3 billion) and weak operational quality. In addition, the profit of DB Energy mainly declined due to a drop in volumes.
Operating profit figures increased noticeably, although adjusted EBIT remained negative. The situation remained tense at DB Cargo and DB Long-Distance in particular.
Additional information is available in the section development of business units.
Transition to the adjusted statement of income
- In the adjusted statement of income, special items are eliminated – the reconciliation in line with the adjusted profit presentation takes place in two steps: first, standard reclassifications are made and then individual special effects are adjusted.
- The reclassifications essentially relate to two issues.
- The components that are not related to net financial debt or pension provisions are reclassified from net interest income: primarily compounding and discounting effects of non-current provisions (excluding pension obligations) and non-current liabilities (excluding financial debt). The non-operational character of these components can also be seen in the fact that their influence on net interest income very much depends on the interest rates as of the balance sheet date.
- The second reclassification relates to depreciation of intangible assets that were capitalized as part of the purchase price allocation for acquisitions (purchase price allocation; PPA) in the valuation of long-term customer contracts. Existing transport contracts are an essential component of the purchase price valuation, in passenger transport in particular. To ensure an operational assessment and prevent unequal treatment compared to other transport contracts, these depreciation components are eliminated from the operating profit.
- Adjustments for special items involve issues which are extraordinary based on the reasons for them and/or the amounts involved, and which would effect a material change on operating development over time. Book profits and losses from transactions with subsidiaries/financial assets are adjusted regardless of their amounts. Individual items are adjusted if they are extraordinary in character, can be accounted for and assessed precisely, and are significant in volume.
| Transition to the adjusted statement of income / € million | 2024 | Reclassifications | Adjustment special effects | 2024 adjusted | 2023 adjusted | Change | |
|---|---|---|---|---|---|---|---|
| Absolute | % | ||||||
| Revenues | 26,203 | – | 24 | 26,227 | 26,090 | +137 | +0.5 |
| Inventory changes and other internally produced and capitalized assets | 4,139 | – | – | 4,139 | 3,465 | +674 | +19.5 |
| Other operating income | 5,764 | – | –196 | 5,568 | 2,967 | +2,601 | +87.7 |
| Cost of materials | –12,997 | – | 4 | –12,993 | –12,810 | –183 | +1.4 |
| Personnel expenses | –16,622 | – | 295 | –16,327 | –15,264 | –1,063 | +7.0 |
| Other operating expenses | –3,903 | – | 232 | –3,671 | –3,566 | –105 | +2.9 |
| EBITDA | 2,584 | – | 359 | 2,943 | 882 | +2,061 | – |
| Depreciation | –3,218 | 2 | –60 | –3,276 | –3,062 | –214 | +7.0 |
| Operating loss (EBIT) | EBIT adjusted | –634 | 2 | 299 | –333 | –2,180 | +1,847 | –84.7 |
| Net interest income | Operating interest balance | –770 | 56 | 25 | –689 | –558 | –131 | +23.5 |
| Operating income after interest | –1,404 | 58 | 324 | –1,022 | –2,738 | +1,716 | –62.7 |
| Result of investments accounted for using the equity method | Net investment income | 13 | 5 | – | 18 | 11 | +7 | +63.6 |
| Other financial result | 24 | –61 | – | –37 | 40 | –77 | – |
| PPA amortization customer contracts | – | –2 | – | –2 | –2 | – | – |
| Extraordinary result | – | – | –324 | –324 | –166 | –158 | +95.2 |
| Loss before taxes on income | –1,367 | – | – | –1,367 | –2,854 | +1,487 | –52.1 |
| Taxes on income | –403 | – | – | –403 | 153 | –556 | – |
| Actual taxes on income | –28 | – | – | –28 | –31 | +3 | –9.7 |
| Deferred tax expense (–)/income (+) | –375 | – | – | –375 | 184 | –559 | – |
| Net loss for the year (continuing operations) | –1,770 | – | – | –1,770 | –2,701 | +931 | –34.5 |
| Net loss for the year (discontinued operations) | 1,006 | – | – | 1,006 | 350 | +656 | – |
| Net loss for the year | –764 | – | – | –764 | –2,351 | +1,587 | –67.5 |
| DB AG shareholders | –806 | – | – | –806 | –2,399 | +1,593 | –66.4 |
| Hybrid capital investors | 25 | – | – | 25 | 25 | – | – |
| Other shareholders (non-controlling interests) | 17 | – | – | 17 | 23 | –6 | –26.1 |
| Earnings per share (€ per share) | |||||||
| Undiluted | –1.87 | – | – | –1.87 | –5.58 | +3.71 | –66.5 |
| Diluted | –1.87 | – | – | –1.87 | –5.58 | +3.71 | –66.5 |
Figures for 2023 adjusted due to the reclassification of DB Schenker.
Development in the year under review
The income trend was clearly positive overall:
- Other operating income (+87.7%/€ +2,601 million): Significant increase, largely driven by the compensation for maintenance measures in the rail infrastructure by the Federal Government for the pre-financings made in 2023 and 2024 (€ +2.7 billion, thereof € 1.1 billion for 2023).
- Changes in inventories and other internally produced and capitalized assets (+19.5%/€ +674 million): The significant increase was largely due to the higher construction and project volumes in the rail infrastructure and in conjunction with the maintenance of vehicles.
- Revenues (+0.5%/€ +137 million): Development at previous year’s level.
On the expenses side, higher personnel expenses and implementation of further infrastructure measures, in particular, led to additional charges (partially offset by Government reimbursements). Among other things, the implementation of countermeasures had a positive impact. The overall increase in expenses was disproportionately low compared to income:
- Personnel expenses (+7.0%/€ +1,063 million): Strong increase, driven by collective bargaining agreement effects and a higher average number of employees in operational areas (particularly at DB InfraGO and DB Regional). The number of employees at DB Group headquarters decreased. The personnel expense ratio deteriorated to 51.6% (previous year: 49.6%), as personnel expenses rose faster than the total of revenues and internally produced and capitalized assets.
- Depreciation (+7.0%/€ +214 million): Capital expenditure-related increase.
- Cost of materials (+1.4%/€ +183 million): Slight increase. Additional burdens resulted, in particular, from a significant expansion of measures to improve the quality and availability of the infrastructure. Since 2024, these measures have been partially offset by the Federal Government (offsetting item in other operating income). Expenses for rail replacement services also increased, largely due to the higher construction volume. The price and volume-related decline in energy expenses had a partial offsetting effect.
- Other operating expenses (+2.9%/€ +105 million): Slight increase mainly due to higher expenses in conjunction with the disposal of property, plant and equipment (DB InfraGO), for damages, rents for buildings and IT services. This was partially offset by cost-reducing effects from countermeasures: among other things, expenses for consulting, advertising, travel and representation costs decreased.
Additional information is available in the section development of business units.
The adjusted EBIT (–84.7%/€ +1,847 million) and adjusted EBITDA (€ +2,061 million) increased accordingly, but were still not satisfactory overall.
- Operating interest balance (+23.5%/€ –131 million): Negative development was largely due to the higher interest rate level, which led to increased expenses in conjunction with financial liabilities, in particular.
Operating income after interest also increased noticeably.
- Net investment income (+63.6%/€ +7 million): Significant increase from a low level, largely driven by the positive profit development of DCH Düsseldorfer Container-Hafen GmbH and EUROFIMA European Company for the Financing of Railroad Rolling Stock, Basel/Switzerland, as well as higher dividend income from other investments.
- Other financial result (€ –77 million): Significant decline above all due to negative effects from hedging transactions and from the compounding and discounting of provisions, which resulted in a net expense (previous year: net income). This was partially offset by positive exchange rate effects.
- Extraordinary result (+95.2%/€ –158 million): Declined significantly and was negative. As in the previous year, restructuring measures and the adjustment of provisions, including in conjunction with environmental contamination and environmental risks, were the main drivers. In addition, positive effects from the revaluation of hedging transactions for energy due to market price-related fluctuations, among other things, had a partially offsetting effect. In the previous year, positive effects, including from the electricity price brake, had an offsetting effect.
| Extraordinary result / € million | 2024 | thereof affecting EBIT | 2023 | thereof affecting EBIT |
|---|---|---|---|---|
| DB Long-Distance | – | – | 112 | 112 |
| DB Regional | 1 | 1 | –4 | –4 |
| DB Cargo | 7 | 7 | –94 | –94 |
| DB InfraGO | 32 | 57 | –10 | –1 |
| DB Energy | 50 | 50 | – | – |
| Other/consolidation | –414 | –414 | –170 | –170 |
| DB Group 1) | –324 | –299 | –166 | –157 |
| thereof restructuring measures 1) | –287 | –287 | –194 | –194 |
| thereof additions to provisions for ecological burdens/environmental risks | –17 | –17 | –67 | –67 |
| thereof revaluation of hedging transactions for energy | 50 | 50 | – | – |
| thereof electricity price brake | – | – | 163 | 163 |
1) Figure for 2023 adjusted due to the reclassification of DB Schenker.
Accordingly, profit before taxes improved noticeably, but remained negative.
The development of the taxes on income position was significantly weaker and had a negative impact on performance:
- The deferred tax expense (€ –375 million; previous year: deferred tax income of € 184 million) resulted primarily from the full valuation allowance on DB AG’s deferred tax assets (€ 354 million).
- Actual taxes on income fell slightly at a low level and mainly related to foreign Group companies (including at DB Cargo).
As a result, profit after taxes from continuing operations (–34.5%/€ +931 million) increased less significantly and remained noticeably negative. The significant increase in the net profit of the discontinued operations (€ +656 million) resulted, in particular, from lower depreciation (€ +221 million; mainly IFRS 5 effect) at DB Schenker and lower expenses for impairments in connection with the sale of DB Arriva (€ +241 million).