Deutsche Bahn returns to first-half profit

Deutsche Bahn reported its first profitable half-year since 2019 and said it expects to stay in the black for all of 2026, even as Germany's state-owned railway continues to struggle with punctuality.

The company said it made a net profit of 147 million euros, or $1.03 billion, in the first six months of 2026. It said savings, including redundancies, left it 900 million euros better off than a year earlier.

Revenue rose almost two percent to 13.6 billion euros, helped by higher passenger numbers. Deutsche Bahn spokesperson Achim Stauss said the war in the Middle East had led some people to use trains instead of cars because of higher fuel prices.

The group said it also expects a full-year profit, while noting risks linked to its cargo division and the broader economy. Deutsche Bahn sold its logistics arm Schenker in 2025 to strengthen its finances.

Punctuality remains a major problem. In the first half of 2026, 59 percent of long-distance trains arrived on time, down four percentage points from a year earlier. The figure does not include cancelled trains.

Chief executive Evelyn Palla called the profit an important milestone but said she would be satisfied only when people were happy with the quality of the everyday rail network. Palla took over in September after her predecessor was dismissed and has warned that improving deteriorated infrastructure and services will take years.

Chancellor Friedrich Merz fired transport minister Patrick Schnieder on Wednesday after concluding he could not turn the situation around.

The German government has freed up more than 100 billion euros for Deutsche Bahn modernisation through the end of the decade. The company's gross investments rose 18 percent year on year to 8.7 billion euros in the first half, while net debt increased by one billion euros to 21.6 billion euros.