Record Results for Willis Lease Finance Corporation in 2024

Rhea-AI Summary

Willis Lease Finance (NASDAQ: WLFC) reported exceptional financial results for 2024, with total revenues reaching $569.2 million and pre-tax income of $152.6 million. The company achieved record-high aggregate core lease rent and maintenance reserve revenues of $452.1 million, marking a 30.4% increase from 2023's $346.8 million.

Key financial highlights include:

• Lease rent revenue increased 11.8% to $238.2 million
• Maintenance reserve revenue grew 60% to $213.9 million
• Spare parts and equipment sales rose to $27.1 million
• Gain on sale of leased equipment reached $45.1 million

The company's lease portfolio value expanded to $2,872.3 million by December 31, 2024, comprising 354 engines, 16 aircraft, one marine vessel, and other equipment. WLFC secured a new five-year, $1.0 billion credit facility in October 2024, and maintained its quarterly dividend of $0.25 per share. Diluted earnings per share reached $15.34, with book value per share increasing to $80.74.

Positive

• Record pre-tax income of $152.6 million, up 127.4% year-over-year
• All-time high core lease rent and maintenance reserve revenues of $452.1 million, up 30.4%
• Maintenance reserve revenue increased 60% to $213.9 million
• Secured new $1.0 billion credit facility, doubled from previous $500 million
• Significant portfolio growth to $2,872.3 million from $2,223.4 million year-over-year
• Strong gain on sale of leased equipment at $45.1 million, up from $10.6 million

Negative

• None.

Insights

Financial Analyst

Willis Lease Finance 's 2024 results showcase exceptional financial performance across all key metrics. The 127.4% increase in pre-tax income to $152.6 million represents transformative profitability improvement, while total revenues reached a record $569.2 million.

The company's core business fundamentals show remarkable strength with lease rent and maintenance reserve revenues hitting an all-time high of $452.1 million, up 30.4% year-over-year. Particularly notable is the 60% surge in maintenance reserve revenue to $213.9 million, outpacing the still impressive 11.8% growth in lease rent revenue.

WLFC has substantially strengthened its balance sheet, expanding its lease portfolio from $2.2 billion to $2.9 billion, while increasing its engine count from 337 to 354 and aircraft from 12 to 16. This aggressive growth strategy is supported by their strategic refinancing and doubling of their credit facility to $1 billion, providing significant liquidity for continued expansion.

Shareholder value metrics are equally impressive, with diluted EPS jumping to $15.34 from $6.23 and book value per share growing to $80.74 from $67.73. The introduction of consecutive quarterly dividends of $0.25 per share establishes WLFC as both a growth and income opportunity, reflecting management's confidence in sustainable profitability.

COCONUT CREEK, Fla., March 10, 2025 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation (NASDAQ: WLFC) (“WLFC”) today reported record annual total revenues of $569.2 million and pre-tax income of $152.6 million. For the year ended December 31, 2024, aggregate, core lease rent and maintenance reserve revenues were at an all-time record high of $452.1 million, up 30.4% as compared to $346.8 million in 2023. The growth was predominantly driven by core, recurring lease and maintenance revenues associated with a strong aviation marketplace.

“In 2024 we leveraged our strong earnings to reinvest in the most in demand engines and aircraft,” said Austin C. Willis, Chief Executive Officer of WLFC. “Our ability to profitably deploy nearly $1 billion is a direct reflection on how our platform maximizes the value of assets.”

2024 Highlights

• The Company generated a record $152.6 million of pre-tax income in 2024, up 127.4% compared to $67.1 million in 2023.

• Lease rent revenue increased by $25.1 million, or 11.8%, to a record $238.2 million in 2024, compared to $213.1 million in 2023.

• Maintenance reserve revenue was $213.9 million, another record high in 2024, an increase of 60.0%, compared to $133.7 million in 2023, reflecting the increased size of the lease portfolio and specifically those leases on short-term lease conditions. Engines out on lease with “non-reimbursable” usage fees generated $174.5 million of short-term maintenance revenues in 2024, compared to $118.3 million in the prior year. There was $39.4 million of long-term maintenance revenue recognized in 2024, compared to $15.4 million in the prior year. Long-term maintenance revenue is recognized at the end of a lease period as the related maintenance reserve liability is released from the balance sheet.

• Spare parts and equipment sales increased to $27.1 million in 2024, compared to $20.4 million in 2023. The increase in spare parts sales reflects the demand for surplus material that we are seeing as operators extend the lives of their current generation engine portfolios. Equipment sales were $1.0 million for the sale of one engine in 2024, as compared to no equipment sales in 2023.

• Gain on sale of leased equipment was $45.1 million in 2024, reflecting the sale of 35 engines, eight airframes, and other parts and equipment from the lease portfolio. Gain on sale of leased equipment was $10.6 million in 2023, reflecting the sale of 28 engines, one airframe, and other parts and equipment from the lease portfolio.

• The book value of lease assets including equipment held for operating lease, maintenance rights, notes receivable, and investments in sales-type leases, increased to $2,872.3 million as of December 31, 2024, as compared to $2,223.4 million as of December 31, 2023. Inclusive of lease assets in our joint ventures, the book value of lease assets increased to $3,238.4 million as of December 31, 2024, as compared to $2,495.4 million as of December 31, 2023.

• Diluted weighted average income per common share was $15.34 for 2024, compared to $6.23 in 2023.

• Book value per diluted weighted average common share outstanding increased to $80.74 at December 31, 2024, compared to $67.73 at December 31, 2023.

• The Company paid its second consecutive, recurring quarterly dividend on its common stock of $0.25 per share in November of 2024, and subsequent to year end 2024, declared and paid its third consecutive, recurring dividend on its common stock of $0.25 per share in February of this year.

• In October of 2024, the Company refinanced and expanded its $500 million credit facility, entering into a new five-year, $1.0 billion credit facility, providing incremental liquidity to support our continued growth.

Balance Sheet

As of December 31, 2024, the Company’s lease portfolio was $2,872.3 million, consisting of $2,635.9 million of equipment held in our operating lease portfolio, $183.6 million of notes receivable, $31.1 million of maintenance rights, and $21.6 million of investments in sales-type leases, which represented 354 engines, 16 aircraft, one marine vessel and other leased parts and equipment. As of December 31, 2023, the Company’s lease portfolio was $2,223.4 million, consisting of $2,112.8 million of equipment held in our operating lease portfolio, $92.6 million of notes receivable, $9.2 million of maintenance rights, and $8.8 million of investments in sales-type leases, which represented 337 engines, 12 aircraft, one marine vessel and other leased parts and equipment.

Conference Call

WLFC will hold a conference call on Monday, March 10, 2025 at 10:00 a.m. Eastern Time to discuss its fourth quarter and full year 2024 results. Individuals wishing to participate in the conference call should dial: US and Canada (877) 612-6725, International +1 (646) 828-8082, wait for the conference operator and provide the operator with the Conference ID 808553. A digital replay will be available two hours after the completion of the conference call. To access the replay, please visit our website at www.wlfc.global under the Investor Relations section for details.

Willis Lease Finance Corporation

Willis Lease Finance Corporation leases large and regional spare commercial aircraft engines, auxiliary power units 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 through Willis Asset Management Limited, 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.

Unaudited Consolidated Statements of Income (In thousands, except per share data)
	Three Months Ended December 31,							Years Ended December 31,
		2024			2023	% Change				2024			2023	% Change
REVENUE
Lease rent revenue	$	64,584		$	51,929	24.4	%		$	238,236		$	213,138	11.8	%
Maintenance reserve revenue		57,381			37,059	54.8	%			213,908			133,668	60.0	%
Spare parts and equipment sales		6,762			7,398	(8.6	)%			27,099			20,359	33.1	%
Interest revenue		3,718			2,311	60.9	%			11,683			8,721	34.0	%
Gain on sale of leased equipment		11,915			5,480	117.4	%			45,063			10,581	325.9	%
Maintenance services revenue		6,202			7,461	(16.9	)%			24,158			24,168	—	%
Other revenue		2,235			2,641	(15.4	)%			9,076			7,920	14.6	%
Total revenue		152,797			114,279	33.7	%			569,223			418,555	36.0	%
EXPENSES
Depreciation and amortization expense		24,157			22,794	6.0	%			92,460			90,925	1.7	%
Cost of spare parts and equipment sales		5,849			5,626	4.0	%			22,852			15,207	50.3	%
Cost of maintenance services		6,823			6,808	0.2	%			24,470			21,159	15.6	%
Write-down of equipment		10,362			2,008	416.0	%			11,228			4,398	155.3	%
General and administrative		42,452			29,637	43.2	%			146,757			115,740	26.8	%
Technical expense		4,370			8,353	(47.7	)%			22,294			28,109	(20.7	)%
Net finance costs:
Interest expense		29,386			22,269	32.0	%			104,764			78,795	33.0	%
Total net finance costs		29,386			22,269	32.0	%			104,764			78,795	33.0	%
Total expenses		123,399			97,495	26.6	%			424,825			354,333	19.9	%
Income from operations		29,398			16,784	75.2	%			144,398			64,222	124.8	%
Income from joint ventures		992			4,197	(76.4	)%			8,247			2,908	183.6	%
Income before income taxes		30,390			20,981	44.8	%			152,645			67,130	127.4	%
Income tax expense		9,329			10,028	(7.0	)%			44,033			23,349	88.6	%
Net income		21,061			10,953	92.3	%			108,612			43,781	148.1	%
Preferred stock dividends		1,368			903	51.5	%			4,126			3,334	23.8	%
Accretion of preferred stock issuance costs		69			12	475.0	%			108			75	44.0	%
Net income attributable to common shareholders	$	19,624		$	10,038	95.5	%		$	104,378		$	40,372	158.5	%
Basic weighted average income per common share	$	2.97		$	1.57				$	15.97		$	6.40
Diluted weighted average income per common share	$	2.81		$	1.53				$	15.34		$	6.23
Basic weighted average common shares outstanding		6,603			6,375					6,536			6,305
Diluted weighted average common shares outstanding		6,983			6,559					6,804			6,481

 

Unaudited Consolidated Balance Sheets
(In thousands, except per share data)
	December 31, 2024		December 31, 2023
ASSETS
Cash and cash equivalents	$	9,110		$	7,071
Restricted cash		123,392			160,958
Equipment held for operating lease, less accumulated depreciation		2,635,910			2,112,837
Maintenance rights		31,134			9,180
Equipment held for sale		12,269			805
Receivables, net		38,291			58,485
Spare parts inventory		72,150			40,954
Investments		62,670			58,044
Property, equipment & furnishings, less accumulated depreciation		48,061			37,160
Intangible assets, net		2,929			1,040
Notes receivable, net		183,629			92,621
Investments in sales-type leases, net		21,606			8,759
Other assets		56,045			64,430
Total assets	$	3,297,196		$	2,652,344
LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITY
Liabilities:
Accounts payable and accrued expenses	$	75,983		$	52,937
Deferred income taxes		185,049			147,779
Debt obligations		2,264,552			1,802,881
Maintenance reserves		97,817			92,497
Security deposits		23,424			23,790
Unearned revenue		37,911			43,533
Total liabilities		2,684,736			2,163,417
Redeemable preferred stock ($0.01 par value)		63,122			49,964
Shareholders’ equity:
Common stock ($0.01 par value)		72			68
Paid-in capital in excess of par		50,928			29,667
Retained earnings		491,439			397,781
Accumulated other comprehensive income, net of tax		6,899			11,447
Total shareholders’ equity		549,338			438,963
Total liabilities, redeemable preferred stock and shareholders’ equity	$	3,297,196		$	2,652,344

CONTACT:		Scott B. Flaherty
		Chief Financial Officer
		561.413.0112

FAQ

What was WLFC's total revenue and pre-tax income for 2024?

WLFC reported total revenues of $569.2 million and pre-tax income of $152.6 million in 2024, with pre-tax income up 127.4% from 2023.

How much did Willis Lease Finance's lease rent revenue grow in 2024?

Lease rent revenue increased by $25.1 million (11.8%) to $238.2 million in 2024, compared to $213.1 million in 2023.

What is the size of WLFC's lease portfolio as of December 31, 2024?

WLFC's lease portfolio reached $2,872.3 million, including 354 engines, 16 aircraft, one marine vessel, and other leased equipment.

What was Willis Lease Finance's earnings per share in 2024?

WLFC reported diluted earnings per share of $15.34 in 2024, compared to $6.23 in 2023.

How much is WLFC's quarterly dividend payment?

WLFC pays a recurring quarterly dividend of $0.25 per share on its common stock.