In the first quarter of 2026, the Latvijas dzelzceļš (LDz) concern faced further reductions in cargo transport and an increase in losses. Despite cost-saving measures, the company warns that due to external factors and the ongoing decline in transport volumes, maintaining financial equilibrium is becoming increasingly difficult.
The Latvijas dzelzceļš concern started 2026 with worsening financial indicators. In the first three months of the year, the company's turnover decreased by 8.8% to 48.1 million euros, while losses more than doubled to 1.8 million euros.
The main reason remains the ongoing decline in cargo volumes. In the first quarter, 1.85 million tons of cargo were transported on the LDz infrastructure, which is 18.3% less than the previous year.
The most noticeable reduction occurred specifically in the freight segment. The mileage of freight trains decreased by almost 19%, while there was a slight increase in passenger transport — by 1%.
Despite the overall decline in volumes, the railway continues to serve a wide range of cargo. The largest share of transportation now consists of grain, processed products, seeds, and fruits — almost 40% of the total volume. In second place are oil and petroleum products, accounting for about 25%.
It is important to note that today Latvijas dzelzceļš is no longer as dependent on transit from Russia and Belarus as it used to be. The company is trying to reorient itself to new markets and increase domestic transport, but it has not yet been able to fully compensate for the lost volumes.
The management report notes that thanks to a long-term cost-cutting program, the company has managed to maintain relative financial stability even amid declining revenues. However, these measures are becoming insufficient.
The company warns that difficulties in meeting financial equilibrium conditions may arise in 2026. Among the risk factors mentioned is the unstable international situation, including the conflict in the Middle East, which affects transport and logistics markets.
At the same time, passenger transport remains relatively stable. In the first quarter, 4.64 million passengers used the railway, which is only 2.5% less than last year's figure.
Despite the challenging situation, LDz continues to invest in infrastructure. In the first three months of the year, the volume of investments exceeded 12 million euros.
Meanwhile, the company is preparing a new development strategy until 2030. The document has already been developed and is currently undergoing approval with government agencies.
The financial results of the first quarter show that the main task for Latvijas dzelzceļš remains finding new sources of cargo and adapting to a market that has significantly changed after the geopolitical shifts of recent years.
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