Lufthansa: MRO-Driven Upside And Cash Flow Momentum Reiterate 'Buy'

Mare Evidence Lab6.01K FollowersFollow5ShareSavePlay(8min)CommentsSummaryQ4 beat driven by MRO and cost discipline, with record 2025 revenues and continued progress on ex-fuel cost control and restructuring.MRO momentum and strong FCF (+41%) support deleveraging and highlight embedded value not yet reflected in the current valuation.Despite geopolitical and fuel price volatility, Lufthansa benefits from a high fuel hedge (~77%), supporting near-term margins.Lufthansa trades at an EV/EBITDA of <3x, with MRO alone valued at 43% of enterprise value, reinforcing the buy rating. viper-zero/iStock Editorial via Getty Images We are positively impressed by Deutsche Lufthansa AG's (DLAKF) (DLAKY) share price performance and our rating evolution. Since our last update (Q3 results comment) and considering the travel disruptions/oilThis article was written byMare Evidence Lab6.01K FollowersFollowBuy-side hedge professionals conducting fundamental, income oriented, long term analysis across sectors globally in developed markets. Please shoot us a message or leave a comment to discuss ideas.DISCLOSURE: All of our articles are a matter of opinion, informed as they might be, and must be treated as such. We take no responsibility for your investments but wish you best of luck.Analyst’s Disclosure: I/we have a beneficial long position in the shares of DLAKF, DLAKY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.