Balance sheet: awful punctuality and billions in losses – there are nonetheless bonuses for the railway board members | EUROtoday

It is the primary annual stability sheet that Evelyn Palla is chargeable for as CEO of Deutsche Bahn – and it as soon as once more bears the hallmarks of a brand new starting. “We are building a new railway,” stated Palla on the annual press convention in Berlin. But behind the departure there’s a calculation that’s removed from paying off.

The DB Group’s gross sales rose by three % to round 27 billion euros in 2025. The adjusted working outcome – i.e. earnings earlier than curiosity, taxes and particular results – climbed by 630 million euros to plus 297 million euros. For the primary time in years, the railway is operationally within the black once more. Palla spoke of a “trend reversal” solely to decelerate in the identical breath: “Satisfaction would be out of place.”

Because the underside line – i.e. after deducting all particular results, curiosity and taxes – stays a lack of 2.3 billion euros, round 500 million euros greater than in 2024. The fundamental purpose is a billion-dollar write-off on the subsidiary DB Long-distance transport amounting to 1.4 billion euros.

The group has revised downwards its future gross sales expectations for long-distance transport. Another admission that the dilapidated rail community will weigh on revenues for years to return. You do not need to look away. “We say clearly what is happening,” says Palla. A sentence that needs to be understood as a demarcation from the period of her predecessor Richard Lutz.

New low in punctuality

Taking under consideration the results of the Schenker sale, the DB Group achieved an annual revenue of 5.3 billion euros. But this result’s misleading: Schenker was an essential revenue generator that’s now lacking. As deliberate, the railway used nearly the entire proceeds to cut back debt. As a outcome, web monetary debt fell by nearly twelve billion euros to now 20.7 billion euros.

The most differentiated image comes from a have a look at the three core enterprise areas. DB Regio stays the clear vivid spot: the adjusted working outcome rose to 191 million euros – greater than doubling in comparison with the earlier yr. Even the bus corporations below the DB Regio Straße umbrella posted an working revenue for the primary time in eight years.

However, Palla’s successor within the regional transport division, Harmen van Zijderveld, is going through a brand new downside. Last week, the European Court of Justice overturned the monitor value brake in native transport. For years it has ensured that native rail corporations should pay much less cash for rail tolls. There is a threat of excessive repayments this yr.

DB long-distance transport, however, has stabilized however stays fragile. The adjusted working outcome returned to optimistic territory at 45 million euros, after a lack of 96 million euros within the earlier yr. Sales and site visitors efficiency even reached report ranges – so the demand is there.

However, because of the continued ailing community, each key figures fell in need of expectations. And the stated depreciation of 1.4 billion euros reveals that the corporate not believes internally that issues will change so rapidly.

For vacationers on the ICE or Intercity this implies: punctuality stays poor. In 2025, solely 60.1 % of long-distance trains reached their vacation spot on time. It is the bottom level in a downward spiral of delay. This is likely one of the the reason why Deutsche Bahn has launched three instant applications with a complete of 140 million euros – for extra cleanliness at prepare stations, higher consolation in long-distance transport and extra dependable passenger info. But fast miracles are to not be anticipated: “It will take around ten years until the rail network is in good condition again,” stated Palla.

The largest downside baby stays DB Cargo. Freight transport recorded a decline in gross sales of eight % to nearly 5 billion euros; the adjusted working outcome was near minus seven million euros, however nonetheless within the purple. The enchancment of round 350 million euros in comparison with the earlier yr is essentially attributable to particular results – such because the sale of locomotives. In 2026, DB Cargo will face a tricky restructuring reduce: 6,200 jobs are to be reduce within the subsequent few years. The corresponding restructuring plan has already been authorized by the group and the EU Commission. If Cargo doesn’t function profitably sooner or later, there’s a threat that the railway subsidiary shall be damaged up.

Board members obtain bonuses

While the railway has been making losses for years, board salaries are a separate chapter. Railway boss Evelyn Palla acquired a complete of round 1.17 million euros in 2025. Human assets director Martin Seiler was the best-paid incumbent director with 1.22 million euros. Long-distance transport supervisor Michael Peterson got here to round 938,000 euros. At the press convention, Palla defended the truth that the railway paid out variable remuneration regardless of poor punctuality: The goal agreements had many elements – in complete they resulted in optimistic values ​​for the variable remuneration.

Significantly greater sums went to these managers who had already needed to go away the group. Ex-Bahn boss Richard Lutz acquired a complete of 5.47 million euros, together with severance funds. The different departed board members additionally acquired beneficiant consideration: Daniela Gerd tom Markotten (digitalization and expertise) acquired 4.04 million euros, Berthold Huber (long-distance transport) 3.72 million euros, Sigrid Nikutta (cargo) 3.59 million euros. In complete, the funds to the board members who left in 2025 alone amounted to 17.3 million euros.

The departure of CFO Karin Dohm lately attracted explicit consideration. The former finance director of the Hornbach ironmongery shop chain solely got here to Deutsche Bahn in December 2025 – because the successor to Levin Holle, who had moved to the Chancellery to affix Federal Chancellor Friedrich Merz. Just a couple of months later she is gone once more. The railway introduced that they’d “mutually agreed to end the cooperation” – expressly not due to publicly mentioned allegations.

WELT beforehand reported on an apparently fully damaged relationship between works council members, board colleagues and managers, which is claimed to have led to Dohm’s departure. According to DB, there aren’t any doubts about Dohm’s skilled {qualifications} or integrity. Palla didn’t need to make any additional remark on the press convention. Dohm acquired 76,000 euros for her brief time period in workplace final yr. Palla didn’t say whether or not she would obtain a excessive severance fee on account of her departure.

For 2026, the railway expects gross sales of round 28 billion euros and an working results of round 600 million euros – a double in comparison with 2025. Palla calls the yr a “departure” and a “super year”: the federal authorities and the railway need to make investments greater than 23 billion euros within the infrastructure collectively. From 2027 onwards, extra buffer occasions between trains will guarantee higher stability within the timetable. However, this might additionally result in the cancellation of particular person connections within the plan. DB Long-distance transport additionally appears to be like at profitability. Connections which are underutilized could possibly be misplaced. Train passengers would due to this fact have much less alternative when reserving.

It is questionable whether or not this shall be sufficient to regain the belief of vacationers. In any case, demand is unbroken: 1.93 billion passengers used DB Group trains in 2025, greater than ever since earlier than Corona. The indisputable fact that the prepare is full regardless of the whole lot is each an incentive and an obligation for Palla. She clearly formulated her purpose: “We want to become the best railway in Europe.” The method to get there, as she is aware of greatest, remains to be very lengthy.

This article was written for the WELT and Economic Competence Center “Business Insider Germany” created.

Klemens Handke is a enterprise editor. He writes about transport coverage, Deutsche Bahn and likewise seems in entrance of the digicam for Business Insider.