Strategy

Implementation of the Strong Rail strategy and S3 restructuring program

The key elements of the Strong Rail strategy and the S3 restructuring program are outlined in the 2024 Integrated Report.

We have supplemented the Strong Rail strategy with the S3 restructuring program, with which we want to improve the infrastructure, operations and profitability by 2027. The goals are:

• restore the performance capability of the rail mode of transport,
• significantly improve the customer experience, and
• ensure the financial viability of DB Group.

In brief: DB Group is to become more punctual, reliable and profitable again.

The main developments in the projects in the infrastructure, operations and profitability pillars of the S3 restructuring program in the first half of 2025 are presented below.

Infrastructure pillar

We want to turn the tide in infrastructure by rapidly modernizing the existing network on the basis of increased funding and through the general modernization of the most important corridors (corridor modernizations). The top key figure is a reduction in infrastructure-related delays.

• General modernizations: With the corridor modernizations, the high-performance network is being modernized step by step in order to improve the stability of the total network. In the corridor modernization of the Riedbahn, the critical phase of the operational ramp-up following the commissioning of the Riedbahn was completed on June 30, 2025. The implementation of the corridor modernization of the Emmerich — Oberhausen line has been underway since February 15, 2025, and is expected to be completed by December 14, 2025. Preparations for the corridor modernization of the Berlin — Hamburg line are in the home straight.
• Interlocking programs: The interlocking programs are intended to ensure the replacement of 200 old interlockings and thus reduce susceptibility to faults. The final project scope was defined in the first half of 2025 and approved for implementation up to and including 2027. Implementation has started successfully: the number of facilitities replaced in the first half of 2025 is higher than forecast.
• Small and medium-sized measures: These measures are intended to ensure rapid capacity gains and more stable quality of operations on highly utilized lines. The ramp-up of the measures is on schedule.
• Restricted speed sections: The number of restricted speed sections in the high-performance network and other parts of the network are significantly higher than planned. An ongoing monitoring process has been set up to process the findings in order to significantly shorten the rectification times.
• Facilities renewal: The aim of the project is to reduce the proportion of punctuality-relevant facilities in need of renewal in the high-performance network (tracks, switches, level crossings and interlockings).
• Target-based quantities and prices: The aim of the project is to secure the required quantities on the market at agreed target prices. The contracts for selected focus projects were awarded in the first quarter of 2025. The contract awards scheduled for May 2025 have been postponed to the third quarter of 2025.
• Station program: The aim of the station program is to holistically modernize all stations to create stations of the future, i. e. including the stations themselves, concourse buildings and forecourts.

Operations pillar

We want to stabilize operations through synchronized construction, by relieving the pressure on critical lines and hubs, and by noticeably improving the quality and availability of our vehicles. The top key figure is the punctuality in long-distance transport.

• SB² synchronized construction system: The SB² synchronized construction program is developing “closure period containers” that provide for standardized closure periods for maintenance and capital expenditure measures in the schedule. The maintenance containers have already been actively implemented since June 2024.
• Hub measures: Hubs are massively overloaded. The focus of the project is on improving the provisioning process and increasing on-schedule departures from the starting station through, among other things, the structured expansion and application of flexible departures with earlier customer departure times in order to create a necessary resilience buffer at the hubs. On-schedule departures from the starting station improved significantly in the first half of 2025.
• Line measures: The line measures that have been initiated are intended to reduce overloading in the system and contribute to operational stabilization. Dispatch and scheduling measures are being developed and will be implemented by the end of 2025.
• DB Long-Distance vehicle quality: The rejuvenation and modernization of the fleet as well as the expansion of maintenance depots will reduce vehicle disruptions that affect punctuality and thus improve vehicle availability. Fleet availability and quality have already increased significantly, thanks to measures such as digitalization projects, vehicle projects, and fleet and depot measures.
• Increasing resilience of DB Regional: Cancellations of train runs at DB Regional are sometimes caused by vehicle malfunctions or a shortage of train personnel. A significant reduction in TOC-related downtimes was achieved, with operational quality improving as a result. In addition, operational resilience began to be increased through the use of artificial intelligence (AI) in scheduling for the S-Bahn (metro) systems in major cities.
• Passenger information: Passenger information is to be made even more reliable, consistent across all channels, and intuitively understandable and actionable for passengers. The expansion of various functions in DB Navigator is currently being implemented. In addition, various measures are being taken to continuously improve delay forecasts.

Profitability pillar

We want to become profitable again by enhancing the business models of the train operating companies, increasing efficiency and lowering personnel expenses, especially in administration and sales functions. The top key figure is adjusted EBIT.

• Strong together: As part of the S3 restructuring program, personnel requirements are to be reduced by 2027, particularly in overhead functions. This is supposed to make DB Group more efficient and more profitable.
• DB Long-Distance: As part of the profitability pillar of the S3 restructuring program, DB Long-Distance aims to increase efficiency and profitability.
• DB Regional: With the project to increase the profitability of DB Regional, we aim to ensure financial and economic viability by responding to changing market conditions.
• DB Cargo: In order to become economically profitable by the end of 2026, DB Cargo implemented a key step in its transformation in the first half of 2025, including the introduction of a customer-oriented structure with entrepreneurial responsibility.
• DB InfraGO: With the project to increase efficiency at DB InfraGO, we are focusing on the various goals of DB InfraGO and their ability to be managed. The first element of the project focuses on the tight-knit management of profitability during the year with a view to achieving the ambitious S3 targets. The second element addresses the implementation of a comprehensive steering model for DB InfraGO in order to structure the capital expenditure and maintenance program as efficiently as possible and optimally control the use of funds in the dimensions of quantity, resources and price.
• Restructuring contribution from Group management and internal service providers: As part of the S3 restructuring program, Group management and the internal service providers are making their contribution to increasing efficiency in the independent and dependent service units.
• Reducing structural costs in materials management: The SCM@DB project is working to optimize and realign the content of the supply chain for rolling stock spare parts within DB Group.