Dear readers,

In 2024, in conjunction with the Federal Government, in a situation that was both operationally and economically unsustainable, we set the course for the systematic restructuring of DB Group and launched S3, a comprehensive overall program for the structural restructuring of DB Group by 2027. Our full focus is on the improvement of infrastructure, operations and profitability. This is accompanied by a fundamentally different way of functioning and working within DB Group. A new era has dawned with the S3 restructuring program.

The year 2024 has underlined the urgent need for action. At 62.5 percent, punctuality in long-distance transport was below the previous year’s figure. DB Regional and DB Cargo also recorded declines. The main reason is the poor condition of the infrastructure: it is too old, too prone to disruptions and too full. In conjunction with the Federal Government, we invested almost 17 billion euros for a better infrastructure in 2024. In 2024, thanks to record levels of construction activity, we managed to halt the aging of our facilities for the first time.

With the commissioning of the completely modernized Riedbahn, we have also proven: the general modernization concept works. In just five months, we completely modernized the about 70-kilometer line between Frankfurt am Main and Mannheim, including the stations and the control and safety technology.

To stabilize operations even when construction activity is high, we are pushing ahead with the introduction of synchronized construction with S3. We have created fixed construction windows in which we plan about 80 percent of the necessary maintenance measures. In this way, we harmonize operations and construction in the best possible way and reduce construction-related delays.

This stabilization is important to render the rail mode of transport more attractive again. The challenging situation in infrastructure and operations is also having an economic impact. This is reflected in the booking behavior of our long-distance passengers. With a little more than 133 million passengers, we had significantly fewer long-distance passengers in 2024 than in the previous year.

We also recorded declines in freight transport, both in terms of freight carried and volume sold. On the other hand, at DB Regional we are seeing a significant increase in passenger numbers for both rail and bus services. Overall, we were once again able to increase the number of passengers to more than 2.4 billion.

Thanks to the repayment of our pre-financings by the Federal Government, we were able to significantly increase our net profit in the Integrated Rail System by 1.8 billion euros compared to the previous year to an EBIT of minus 269 million euros. Taking into account DB Schenker, the sale of which was decided in 2024 and which is thus no longer included in the Group figures, EBIT would have been positive at 843 million euros. The operating loss in the Integrated Rail System underlines the immense need for financial restructuring.

We take pleasure in the fact that the measures we introduced in 2024 to improve efficiency have already started to take effect. Our aim is to streamline administration in the long term. This is less about selective interventions and more about a complete organizational realignment. We have already reduced the number of employees in administration and sales by almost 1,000 full-time employees. Overall, the planning includes a reduction in overheads of about 20 percent.

Together, we succeeded in concluding a long-term collective bargaining agreement with the Railway and Transport Workers Union. The agreement takes account of the company’s difficult situation and create long-term security for the company and its employees.

By systematically implementing S3, we aim to return to the planned growth path in 2027. We want to reduce infrastructure-related disruptions by 20 percent, bring punctuality back to a level between 75 and 80 percent and increase the operating profit (EBIT) in the Integrated Rail System to two billion euros. After all, we are committed to our goal of Strong Rail and want to make a contribution to ensuring that Germany achieves its transport and climate policy objectives.

With S3, we have a roadmap for a Deutsche Bahn that meets the justified demands of society and our owner, the Federal Government, for a modern, reliable and climate-friendly means of transport.

Sincerely

Dr. Richard Lutz
CEO and Chairman of the Management Board of Deutsche Bahn AG