Deutsche Bahn posts first profit since 2019 but misses 2026 punctuality target, CEO calls for cultural overhaul

The German state railway reported a modest financial recovery in the first half of 2026. Net profit in the core business turned positive at €147 million – the first post‑tax profit since 2019 – while total revenue rose 1.8 % to €13.6 billion and adjusted EBIT improved by €96 million. Investment spending jumped 18 % to €8.7 billion, the highest half‑year level in the company’s history. DB Cargo, however, continued to see declines in traffic and revenue, keeping the freight division under pressure.

CEO Evelyn Palla, who took office in October 2025, used the same period to criticize the former management culture, describing it as “organized irresponsibility”. She said the railway missed its own punctuality goal, with only 58.7 % of long‑distance trains on time against a 60 % target, and gave the overall reliability a school‑grade of 4‑minus. Palla outlined a restructuring plan that cuts central layers, shifts responsibility to regional units and aims to have “the worst” of the current crisis behind the company by 2035.

The combined financial and operational picture underscores the challenge of turning around a large public‑sector operator while overhauling its internal culture and service performance.