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

Q4 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.