Record Quarterly Lease Rent Revenue Reported in Willis Lease Finance Corporation’s First Quarter 2026 Financial Results
Rhea-AI Summary
Willis Lease Finance (NASDAQ: WLFC) reported Q1 2026 results with total revenue of $194.3M (+23.2%), record lease rent revenue $77.4M (+14.2%) and record maintenance services $9.8M (+74.9%). Adjusted EBITDA was $123.8M (+19.9%). The company declared a $0.40 quarterly dividend, payable May 22, 2026.
Net income attributable to common shareholders was $23.7M (+52.9%); portfolio utilization rose to 85.8% at quarter end.
Positive
- Total revenue $194.3M, +23.2% year-over-year
- Record lease rent revenue $77.4M, +14.2% year-over-year
- Record maintenance services $9.8M, +74.9% year-over-year
- Adjusted EBITDA $123.8M, +19.9% year-over-year
- Declared $0.40 quarterly dividend, payable May 22, 2026
- Portfolio utilization increased to 85.8% at quarter end
Negative
- Lease portfolio declined to $2,857.0M from $2,988.9M year-end 2025
- Notes receivable fell to $65.6M from $139.9M at year-end 2025
- Recognized $7.0M loss on debt extinguishment in Q1 2026
- Ceased investment in sustainable aviation fuels project; prior Q1 2025 charges were $11.8M
News Market Reaction – WLFC
In the May 5 session, WLFC gained 16.96%, reflecting a significant positive market reaction. Argus tracked a peak move of +10.4% during that session. Our momentum scanner triggered 28 alerts that day, indicating elevated trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 10 | Annual results | Positive | -2.6% | Record 2025 revenue, pre-tax income and adjusted EBITDA with higher utilization. |
| Nov 04 | Quarterly earnings | Positive | -6.0% | Q3 2025 revenue and pre-tax income growth with record lease and maintenance revenue. |
| Aug 05 | Quarterly earnings | Positive | +7.8% | Record Q2 2025 revenue and pre-tax income with higher utilization and asset sales gain. |
| May 06 | Quarterly earnings | Positive | -14.2% | Record Q1 2025 revenue and stronger lease and maintenance reserve revenue. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent earnings releases have generally been strong operationally, but the stock often showed negative next-day moves, indicating a pattern of selling into good news.
Over the past year, WLFC has repeatedly delivered strong earnings updates. Events on May 6, 2025, Aug 5, 2025, Nov 4, 2025, and the record 2025 results on Mar 10, 2026 highlighted rising revenue, pre-tax income, and portfolio utilization. Despite this, three of these four earnings events saw negative 24-hour price reactions. Today’s Q1 2026 results continue the trend of record metrics and portfolio growth within this established trajectory.
Key Terms
adjusted EBITDA financial
non-GAAP financial measure financial
maintenance reserve liability financial
sales-type leases financial
sustainable aviation fuels technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Declares Second Quarter 2026 Dividend of
COCONUT CREEK, Fla., May 05, 2026 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation (NASDAQ: WLFC) (“WLFC” or the “Company”), the leading lessor of commercial aircraft engines and global provider of aviation services, today announced its financial results for the first quarter ended March 31, 2026. The Company also announced a quarterly dividend of
First Quarter 2026 Highlights (All metrics compared to first quarter 2025, except where noted)
- Quarterly total revenue of
$194.3 million , an increase of23.2% - Income from operations of
$33.8 million , an increase of41.4% - Quarterly pre-tax income of
$36.8 million , an increase of45.9% - Diluted weighted average income per common share of
$3.26 , an increase of47.5% - Record high quarterly lease rent revenue of
$77.4 million , an increase of14.2% - Record high quarterly maintenance services revenue of
$9.8 million , an increase of74.9% - Gain on sale of leased equipment of
$18.0 million , and increase of304.8% - Net income attributable to common shareholders of
$23.7 million , an increase of52.9% - Adjusted EBITDA of
$123.8 million , an increase of19.9% - Portfolio utilization increased to
85.8% at quarter end, compared to79.9%
For the three months ended March 31, 2026, total revenue was
“In the first quarter we outperformed nearly every revenue and earnings metric compared to Q1 2025,” said Austin Willis, CEO of WLFC, “and, thanks to the capital strategy we executed, we are poised for significant growth.”
First Quarter 2026 Operating Results
Lease rent revenue increased by
During the first quarter of 2026, the Company recognized
For the quarter ended March 31, 2026, the gain on sale of leased equipment was
In March 2026, the Company’s investment fund partnership with Liberty Mutual Investments commenced operations.
The book value of lease assets owned either directly or through WLFC’s joint ventures, inclusive of the Company’s equipment held for operating lease, maintenance rights, notes receivable, and investments in sales-type leases was
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA
We analyze our financial data to evaluate the health of our business and assess our performance. As appropriate, in addition to income or loss from operations under GAAP, we use Adjusted EBITDA, a non-GAAP financial measure, to evaluate our business. We believe that this non-GAAP financial measure provides meaningful supplemental information regarding our performance as it excludes certain items that may not be indicative of our recurring operating results. We also believe that investors, in addition to management, benefit from referring to this non-GAAP financial measure in assessing our performance, when viewed together with our GAAP results. While items excluded from Adjusted EBITDA may be recurring in nature and should not be disregarded in evaluating performance, it can be useful to exclude such items as they can vary significantly between periods and or not be indicative of current or future operating results.
Because non-GAAP financial measures are not standardized, our calculation of Adjusted EBITDA may differ from similarly titled non-GAAP measures, if any, reported by other companies. This non-GAAP financial measure should not be considered in insolation from, or as a substitute for, financial information performed in accordance with GAAP.
We define Adjusted EBITDA as net income attributable to common shareholders, excluding (i) income tax expense, (ii) interest expense, (iii) preferred stock dividends/costs, (iv) loss on debt extinguishment, (v) depreciation and amortization expense, (vi) stock compensation expense, (vii) write-down of equipment, (viii) acquisition, financing and divestitures related expenses, and (ix) other items not indicative of our ongoing operating performance.
Adjusted EBITDA was approximately
| Three months ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| (in thousands) | ||||||||
| Net income attributable to common shareholders | $ | 23,661 | $ | 15,476 | ||||
| Add: Income tax expense | 11,755 | 8,385 | ||||||
| Add: Interest expense | 32,633 | 32,094 | ||||||
| Add: Preferred stock dividends/costs | 1,422 | 1,393 | ||||||
| Add: Loss on debt extinguishment | 7,027 | — | ||||||
| Add: Depreciation and amortization expense | 30,178 | 25,024 | ||||||
| Add: Stock compensation expense | 13,752 | 6,907 | ||||||
| Add: Write-down of equipment | 1,149 | 2,109 | ||||||
| Add: Acquisition, financing and divestitures related expenses | 2,242 | 166 | ||||||
| Add: Other (1) | 28 | 11,777 | ||||||
| Adjusted EBITDA | $ | 123,847 | $ | 103,331 | ||||
________________________________________________________
- In Q1 2026 and 2025, the Company recognized
$0.03 million and$11.8 million , respectively, in non-recurring project expenses associated with the sustainable aviation fuels project, which the Company decided to cease investment in and pursue strategic alternatives for, including, a potential sale.
Balance Sheet
As of March 31, 2026, the Company’s lease portfolio was
Conference Call
WLFC will hold a conference call led by the executive management team today at 10:00 a.m. Eastern Time to discuss its first quarter 2026 results.
To participate in the conference call, please use the following dial-in numbers:
U.S. and Canada: +1 (800) 330-6730
International: +1 (786) 297-8585
Conference ID: 3012326
Participant Passcode: 989617
The conference call may also be accessed by registering via the following link:
https://event.webcasts.com/starthere.jsp?ei=1759374&tp_key=c0ab3b632b.
A digital replay will be available two hours after the completion of the conference call. To access the replay, please visit the Investor Relations sections of our website at https://www.wlfc.global/investor-center.
About Willis Lease Finance Corporation
Willis Lease Finance Corporation (WLFC) leases large and regional spare commercial aircraft engines and aircraft to airlines, aircraft engine manufacturers and maintenance, repair and overhaul providers worldwide. These leasing activities are integrated with engine and aircraft trading, engine lease pools and asset management services, as well as various end-of-life solutions for engines and aviation materials provided through Willis Aeronautical Services, Inc. Additionally, through Willis Engine Repair Center®, Jet Centre
by Willis, and Willis Aviation Services Limited, the Company’s service offerings include Part 145 engine maintenance, aircraft line and base maintenance, aircraft disassembly, parking and storage, airport FBO, and ground and cargo handling services.
Forward-Looking Statements
Except for historical information, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. By their nature, forward-looking statements involve a number of inherent risks, uncertainties and assumptions and are subject to change in circumstances that are difficult to predict and many of which are outside of our control. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law. Our actual results may differ materially from the results discussed, either expressly or implicitly, in forward-looking statements. Factors that might cause such a difference include, but are not limited to: the effects on the airline industry and the global economy of events such as war, terrorist activity and natural disasters; changes in oil prices, rising inflation and other disruptions to world markets; trends in the airline industry and our ability to capitalize on those trends, including growth rates of markets and other economic factors, as well as the impact of new or increased tariffs; risks associated with owning and leasing jet engines and aircraft; our ability to successfully negotiate equipment purchases, sales and leases, to collect outstanding amounts due and to control costs and expenses; changes in interest rates and availability of capital, both to us and our customers; our ability to continue to meet changing customer demands; regulatory changes affecting airline operations, aircraft maintenance, accounting standards and taxes; the market value of engines and other assets in our portfolio; and risks detailed in the Company’s Annual Report on Form 10-K and other continuing and current reports filed with the Securities and Exchange Commission. It is advisable, however, to consult any further disclosures the Company makes on related subjects in such filings. These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.
| CONTACT: | Scott B. Flaherty |
| Executive Vice President & Chief Financial Officer | |
| 561.413.0112 | |
Unaudited Condensed Consolidated Statements of Income
(In thousands, except per share data)
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | % Change | |||||||||
| REVENUE | |||||||||||
| Lease rent revenue | $ | 77,385 | $ | 67,739 | 14.2 | % | |||||
| Maintenance reserve revenue | 55,512 | 54,859 | 1.2 | % | |||||||
| Spare parts and equipment sales | 21,687 | 18,240 | 18.9 | % | |||||||
| Interest revenue | 2,788 | 3,934 | (29.1) | % | |||||||
| Gain on sale of leased equipment | 17,959 | 4,437 | 304.8 | % | |||||||
| Gain on sale of financial assets | 438 | 378 | 15.9 | % | |||||||
| Maintenance services revenue | 9,769 | 5,586 | 74.9 | % | |||||||
| Management and advisory fees | 7,895 | 1,963 | 302.2 | % | |||||||
| Other revenue | 913 | 596 | 53.2 | % | |||||||
| Total revenue | 194,346 | 157,732 | 23.2 | % | |||||||
| EXPENSES | |||||||||||
| Depreciation and amortization expense | 30,178 | 25,024 | 20.6 | % | |||||||
| Cost of spare parts and equipment sales | 14,417 | 15,323 | (5.9) | % | |||||||
| Cost of maintenance services | 8,860 | 5,329 | 66.3 | % | |||||||
| Write-down of equipment | 1,149 | 2,109 | (45.5) | % | |||||||
| General and administrative | 56,604 | 47,720 | 18.6 | % | |||||||
| Technical expense | 9,688 | 6,230 | 55.5 | % | |||||||
| Net finance costs: | |||||||||||
| Interest expense | 32,633 | 32,094 | 1.7 | % | |||||||
| Loss on debt extinguishment | 7,027 | — | nm | ||||||||
| Total net finance costs | 39,660 | 32,094 | 23.6 | % | |||||||
| Total expenses | 160,556 | 133,829 | 20.0 | % | |||||||
| Income from operations | 33,790 | 23,903 | 41.4 | % | |||||||
| Income from investments | 3,048 | 1,351 | 125.6 | % | |||||||
| Income before income taxes | 36,838 | 25,254 | 45.9 | % | |||||||
| Income tax expense | 11,755 | 8,385 | 40.2 | % | |||||||
| Net income | 25,083 | 16,869 | 48.7 | % | |||||||
| Preferred stock dividends | 1,353 | 1,323 | 2.3 | % | |||||||
| Accretion of preferred stock issuance costs | 69 | 70 | (1.4) | % | |||||||
| Net income attributable to common shareholders | $ | 23,661 | $ | 15,476 | 52.9 | % | |||||
| Basic weighted average income per common share | $ | 3.49 | $ | 2.34 | |||||||
| Diluted weighted average income per common share | $ | 3.26 | $ | 2.21 | |||||||
| Basic weighted average common shares outstanding | 6,778 | 6,606 | |||||||||
| Diluted weighted average common shares outstanding | 7,252 | 7,000 | |||||||||
Unaudited Condensed Consolidated Balance Sheets
(In thousands, except per share data)
| March 31, 2026 | December 31, 2025 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 24,554 | $ | 16,441 | ||||
| Restricted cash | 196,023 | 530,500 | ||||||
| Equipment held for operating lease, less accumulated depreciation | 2,760,517 | 2,801,683 | ||||||
| Maintenance rights | 30,576 | 30,632 | ||||||
| Equipment held for sale | 14,764 | 20,509 | ||||||
| Receivables, net | 38,886 | 35,717 | ||||||
| Spare parts inventory | 56,321 | 56,577 | ||||||
| Investments | 128,996 | 104,250 | ||||||
| Property, equipment & furnishings, less accumulated depreciation | 75,767 | 73,835 | ||||||
| Intangible assets, net | 271 | 271 | ||||||
| Notes receivable, net | 65,551 | 139,945 | ||||||
| Investments in sales-type leases, net | 344 | 16,595 | ||||||
| Due from affiliates | 229 | — | ||||||
| Other assets | 113,386 | 109,360 | ||||||
| Total assets | $ | 3,506,185 | $ | 3,936,315 | ||||
| LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITY | ||||||||
| Liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 72,636 | $ | 105,706 | ||||
| Deferred income taxes | 240,112 | 228,547 | ||||||
| Debt obligations | 2,253,705 | 2,700,338 | ||||||
| Maintenance reserves | 124,562 | 116,185 | ||||||
| Security deposits | 24,398 | 24,651 | ||||||
| Unearned revenue | 32,928 | 35,350 | ||||||
| Total liabilities | 2,748,341 | 3,210,777 | ||||||
| Redeemable preferred stock ( | 63,470 | 63,401 | ||||||
| Shareholders’ equity: | ||||||||
| Common stock ( | 77 | 76 | ||||||
| Paid-in capital in excess of par | 83,751 | 72,663 | ||||||
| Retained earnings | 611,333 | 590,785 | ||||||
| Accumulated other comprehensive loss, net of tax | (787 | ) | (1,387 | ) | ||||
| Total shareholders’ equity | 694,374 | 662,137 | ||||||
| Total liabilities, redeemable preferred stock and shareholders’ equity | $ | 3,506,185 | $ | 3,936,315 | ||||
