At some EUR 7.6 billion, net capital expenditures from Deutsche Bahn's own funds increased by over 16% year on year, setting a new record.
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As expected, additional infrastructure expenditures and substantial upfront expenses of more than EUR 1 billion pre-financed for the German government had a negative impact on DB's EBIT.
DB Group closed the 2023 financial year with an adjusted EBIT of EUR -964 million (compared with EUR 1.225 billion in the previous year).
DB expects a positive adjusted EBIT of over EUR 1 billion again in 2024.
A general modernization of roughly 40 heavily used corridors in DB's rail network will be the key piece in upgrading rail infrastructure for more stability and quality.
The lines will undergo a full modernization, which will equip them with extended platforms, upgraded permanent way, digital signaling technology and more.
By 2030, Germany will have a high performance network over 9,000 kilometers long.
The project will begin this year with the roughly 70 kilometer Riedbahn line between Frankfurt and Mannheim.
A test phase in January 2024 installed five times more building material than is typical for conventional construction projects.
DB and the German government increased gross capital expenditures in 2023 by about 12% year on year to a total of EUR 16.9 billion.
More than 94% of this record capital expenditures went toward rail in Germany, primarily in the infrastructure.
As expected, net financial debt was up as of December 31, 2023, in part due to capital expenditures on rail infrastructure and vehicles, and to DB's pre-financed expenditures for the German government. DB had a net loss for 2023 of some EUR 2.4 billion (compared with a net loss of EUR 227 million in the previous year).
One of the negative factors here was the significant increase in interest paid, which was driven in part by higher borrowing for capital expenditures.
The DB Group's results were also affected by the additional burdens of inflation-related cost increases, a sharp rise in personnel expenses and multiple strikes ■