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)
