Willis Lease Finance Corporation Reports Solid Second Quarter 2026 Financial Results
Rhea-AI Summary
Willis Lease Finance Corporation (NASDAQ: WLFC) reported second quarter 2026 income from operations of $34.0 million, up 20.2% year over year, on total revenue of $194.0 million, down 0.8% versus second quarter 2025. Net income attributable to common shareholders was $28.7 million, with basic EPS of $1.36, compared to $2.89 a year earlier, reflecting the absence of the prior-year $43.0 million gain on sale of the BAML business.
Lease rent revenue rose 6.7% to $77.1 million, while aggregate core lease rent and maintenance reserve revenues edged up 0.5% to $123.6 million. Gain on sale of leased equipment increased 16.2% to $32.0 million. Adjusted EBITDA grew 4.0% to $120.7 million. Assets under management, including on-balance sheet assets and Willis Aviation Capital businesses, reached $4.4 billion, with total lease assets owned directly or via joint ventures at $3,721.6 million. On the balance sheet, total assets were $3.65 billion and debt obligations declined to $2.32 billion, while total equity increased to $710.3 million as of June 30, 2026.
Positive
- Income from operations up 20.2% year over year to $34.0 million
- Adjusted EBITDA increased 4.0% to $120.7 million in Q2 2026
- Gain on sale of leased equipment rose 16.2% to $32.0 million
- Assets under management reached $4.4 billion, with 21% year-over-year AUM growth
- Debt obligations decreased to $2.32 billion from $2.70 billion since year-end 2025
- Total shareholders’ equity increased to $710.3 million from $662.1 million
Negative
- Total Q2 2026 revenue declined 0.8% year over year to $194.0 million
- Net income attributable to common shareholders fell 51.2% versus Q2 2025 to $28.7 million
- Maintenance reserve revenue decreased 8.4% to $46.5 million in Q2 2026
- Spare parts and equipment sales revenue declined 30.2% to $21.2 million
- Technical expense increased 32.5% year over year to $9.9 million
- Company recorded a $5.4 million loss on debt extinguishment in Q2 2026
News Explained
At June 30, the balance sheet lists $10,725 thousand cash, $161,497 thousand restricted cash, and a $2,956.3 million lease portfolio.
The company reports second-quarter 2026 results for the period ended
The lease portfolio was
Compared with
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 05 | Q1 earnings report | Positive | +17.0% | Revenue, lease rent revenue, EBITDA, and net income increased year over year. |
| Mar 10 | Annual earnings report | Positive | -2.6% | Record annual revenue and adjusted EBITDA increased, but shares declined 2.6%. |
| Nov 04 | Q3 earnings report | Positive | -6.0% | Revenue, pre-tax income, lease rent, and maintenance reserve revenue increased. |
| Aug 05 | Q2 earnings report | Positive | +7.8% | Record revenue and pre-tax income accompanied higher lease rent and portfolio utilization. |
| May 06 | Q1 earnings report | Positive | -14.2% | Record revenue and higher lease rent were followed by a 14.15% share-price decline. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
WLFC's earnings announcements produced mixed reactions, with positive operating results followed by both gains and declines.
Key Terms
adjusted ebitda financial
non-gaap financial measure financial
maintenance reserve liability financial
sales-type leases financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
COCONUT CREEK, Fla., Aug. 04, 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 second quarter ended June 30, 2026.
Second Quarter 2026 Highlights (All metrics compared to second quarter 2025, except where noted)
- Income from operations of
$34.0 million , an increase of20.2% - Quarterly lease rent revenue of
$77.1 million , an increase of6.7% - Quarterly core lease rent and maintenance reserve revenues were
$123.6 million in the aggregate, up0.5% - Gain on sale of leased equipment of
$32.0 million , an increase of16.2% - Net income attributable to common shareholders of
$28.7 million - Adjusted EBITDA of
$120.7 million , an increase of4.0% - Grew assets under management, including on our balance sheet and Willis Aviation Capital businesses, to
$4.4 billion
“The first half of the year was focused on establishing and building Willis Aviation Capital,” said Austin C. Willis, Chief Executive Officer of WLFC, “with total AUM growth of
Second Quarter 2026 Operating Results
Lease rent revenue increased by
During the second quarter of 2026, the Company recognized
For the quarter ended June 30, 2026, the gain on sale of leased equipment was
In March 2026, the Company’s investment fund partnership with Liberty Mutual Investments commenced operations, followed by the commencement of the Company’s investment fund partnership with Blackstone Credit & Insurance in April 2026.
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
The value of our assets under management, inclusive of the book value of WLFC’s on-balance sheet assets as well as leased assets in our joint ventures, third-party managed assets, and managed fund portfolios 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 June 30, | Six months ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (in thousands) | |||||||||||||||
| Net income attributable to common shareholders | $ | 28,745 | $ | 58,955 | $ | 52,406 | $ | 74,431 | |||||||
| Add: Income tax expense | 7,828 | 13,920 | 19,583 | 22,305 | |||||||||||
| Add: Interest expense | 29,689 | 33,569 | 62,322 | 65,663 | |||||||||||
| Add: Preferred stock dividends/costs | 1,423 | 1,422 | 2,845 | 2,815 | |||||||||||
| Add: Loss on debt extinguishment | 5,421 | — | 12,448 | — | |||||||||||
| Add: Depreciation and amortization expense | 29,068 | 27,550 | 59,246 | 52,574 | |||||||||||
| Add: Stock compensation expense | 12,703 | 16,751 | 26,455 | 23,658 | |||||||||||
| Add: Write-down of equipment | 4,910 | 11,458 | 6,059 | 13,567 | |||||||||||
| Add: Acquisition, financing and divestitures related expenses | 2,560 | 662 | 4,802 | 828 | |||||||||||
| Less: Other (1) | (1,610 | ) | (48,226 | ) | (1,581 | ) | (36,449 | ) | |||||||
| Adjusted EBITDA | $ | 120,737 | $ | 116,061 | $ | 244,585 | $ | 219,392 | |||||||
________________________________________________________
- During the three and six months ended June 30, 2026, the Company recognized non-recurring project expenses of
$(1.6) million and$(1.6) million , respectively, related to its sustainable aviation fuel project. The negative expense recognized during the three-month and six-month periods reflect government grant proceeds recognized in the second quarter of 2026. During the three and six months ended June 30, 2025, the Company recognized non-recurring project expenses of$(5.3) million and$6.5 million , respectively, related to its sustainable aviation fuel project, for which the Company subsequently decided to cease further investment. The negative expense recognized during the three-month period reflects government grant proceeds received in the second quarter of 2025. Additionally, during the three and six months ended June 30, 2025, the Company recognized$43.0 million in relation to the gain on sale of the BAML business.
Balance Sheet
As of June 30, 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 second 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: 7661930
Participant Passcode: 442978
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.
Unaudited Condensed Consolidated Statements of Income
(In thousands, except per share data)
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||
| REVENUE | |||||||||||||||||
| Lease rent revenue | $ | 77,137 | $ | 72,268 | 6.7 | % | $ | 154,522 | $ | 140,007 | 10.4 | % | |||||
| Maintenance reserve revenue | 46,456 | 50,743 | (8.4)% | 101,968 | 105,602 | (3.4)% | |||||||||||
| Spare parts and equipment sales | 21,180 | 30,354 | (30.2)% | 42,867 | 48,594 | (11.8)% | |||||||||||
| Interest revenue | 1,183 | 3,649 | (67.6)% | 3,971 | 7,583 | (47.6)% | |||||||||||
| Gain on sale of leased equipment | 32,038 | 27,582 | 16.2 | % | 49,997 | 32,019 | 56.1 | % | |||||||||
| Gain on sale of financial assets | 154 | — | nm | 592 | 378 | 56.6 | % | ||||||||||
| Maintenance services revenue | 8,983 | 8,031 | 11.9 | % | 18,752 | 13,617 | 37.7 | % | |||||||||
| Management and advisory fees | 5,524 | 2,588 | 113.4 | % | 13,419 | 4,551 | 194.9 | % | |||||||||
| Other revenue | 1,362 | 287 | 374.6 | % | 2,275 | 883 | 157.6 | % | |||||||||
| Total revenue | 194,017 | 195,502 | (0.8)% | 388,363 | 353,234 | 9.9 | % | ||||||||||
| EXPENSES | |||||||||||||||||
| Depreciation and amortization expense | 29,068 | 27,550 | 5.5 | % | 59,246 | 52,574 | 12.7 | % | |||||||||
| Cost of spare parts and equipment sales | 15,097 | 28,102 | (46.3)% | 29,514 | 43,425 | (32.0)% | |||||||||||
| Cost of maintenance services | 10,350 | 8,621 | 20.1 | % | 19,210 | 13,950 | 37.7 | % | |||||||||
| Write-down of equipment | 4,910 | 11,458 | (57.1)% | 6,059 | 13,567 | (55.3)% | |||||||||||
| General and administrative | 55,559 | 50,429 | 10.2 | % | 112,163 | 98,149 | 14.3 | % | |||||||||
| Technical expense | 9,947 | 7,508 | 32.5 | % | 19,635 | 13,738 | 42.9 | % | |||||||||
| Net finance costs: | |||||||||||||||||
| Interest expense | 29,689 | 33,569 | (11.6)% | 62,322 | 65,663 | (5.1)% | |||||||||||
| Loss on debt extinguishment | 5,421 | — | nm | 12,448 | — | nm | |||||||||||
| Total net finance costs | 35,110 | 33,569 | 4.6 | % | 74,770 | 65,663 | 13.9 | % | |||||||||
| Total expenses | 160,041 | 167,237 | (4.3)% | 320,597 | 301,066 | 6.5 | % | ||||||||||
| Income from operations | 33,976 | 28,265 | 20.2 | % | 67,766 | 52,168 | 29.9 | % | |||||||||
| Gain on sale of business | — | 42,950 | (100.0)% | — | 42,950 | (100.0)% | |||||||||||
| Income from investments | 4,172 | 3,082 | 35.4 | % | 7,220 | 4,433 | 62.9 | % | |||||||||
| Income before income taxes | 38,148 | 74,297 | (48.7)% | 74,986 | 99,551 | (24.7)% | |||||||||||
| Income tax expense | 7,828 | 13,920 | (43.8)% | 19,583 | 22,305 | (12.2)% | |||||||||||
| Net income | 30,320 | 60,377 | (49.8)% | 55,403 | 77,246 | (28.3)% | |||||||||||
| Net income attributable to noncontrolling interests | 152 | — | nm | 152 | — | nm | |||||||||||
| Net income attributable to WLFC | 30,168 | 60,377 | (50.0)% | 55,251 | 77,246 | (28.5)% | |||||||||||
| Preferred stock dividends | 1,353 | 1,353 | — | % | 2,706 | 2,676 | 1.1 | % | |||||||||
| Accretion of preferred stock issuance costs | 70 | 69 | 1.4 | % | 139 | 139 | — | % | |||||||||
| Net income attributable to common shareholders | $ | 28,745 | $ | 58,955 | (51.2)% | $ | 52,406 | $ | 74,431 | (29.6)% | |||||||
| Basic weighted average income per common share | $ | 1.36 | $ | 2.89 | $ | 2.53 | $ | 3.70 | |||||||||
| Diluted weighted average income per common share | $ | 1.31 | $ | 2.81 | $ | 2.39 | $ | 3.55 | |||||||||
| Basic weighted average common shares outstanding | 21,127 | 20,367 | 20,733 | 20,094 | |||||||||||||
| Diluted weighted average common shares outstanding | 22,013 | 20,970 | 21,885 | 20,985 | |||||||||||||
Unaudited Condensed Consolidated Balance Sheets
(In thousands, except per share data)
| June 30, 2026 | December 31, 2025 | ||||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 10,725 | $ | 16,441 | |||
| Restricted cash | 161,497 | 530,500 | |||||
| Equipment held for operating lease, less accumulated depreciation | 2,783,382 | 2,801,683 | |||||
| Maintenance rights | 83,632 | 30,632 | |||||
| Equipment held for sale | 77,002 | 20,509 | |||||
| Receivables, net | 41,365 | 35,717 | |||||
| Spare parts inventory | 51,402 | 56,577 | |||||
| Investments | 152,148 | 104,250 | |||||
| Property, equipment & furnishings, less accumulated depreciation | 76,904 | 73,835 | |||||
| Intangible assets, net | 8,295 | 271 | |||||
| Notes receivable, net | 89,279 | 139,945 | |||||
| Investments in sales-type leases, net | — | 16,595 | |||||
| Due from affiliates | 3,188 | — | |||||
| Other assets | 114,357 | 109,360 | |||||
| Total assets | $ | 3,653,176 | $ | 3,936,315 | |||
| LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY | |||||||
| Liabilities: | |||||||
| Accounts payable and accrued expenses | $ | 103,306 | $ | 105,706 | |||
| Deferred income taxes | 264,773 | 228,547 | |||||
| Debt obligations | 2,320,904 | 2,700,338 | |||||
| Maintenance reserves | 129,261 | 116,185 | |||||
| Security deposits | 24,537 | 24,651 | |||||
| Unearned revenue | 35,112 | 35,350 | |||||
| Due to affiliates | 1,407 | — | |||||
| Total liabilities | 2,879,300 | 3,210,777 | |||||
| Redeemable preferred stock ( | 63,540 | 63,401 | |||||
| Shareholders’ equity: | |||||||
| Common stock ( | 228 | 229 | |||||
| Paid-in capital in excess of par | 71,274 | 72,510 | |||||
| Retained earnings | 637,033 | 590,785 | |||||
| Accumulated other comprehensive income (loss), net of income tax expense (benefit) | 61 | (1,387 | ) | ||||
| Total Willis Lease Finance Corporation shareholders’ equity | 708,596 | 662,137 | |||||
| Noncontrolling interests | 1,740 | — | |||||
| Total equity | 710,336 | 662,137 | |||||
| Total liabilities, redeemable preferred stock and equity | $ | 3,653,176 | $ | 3,936,315 | |||
| CONTACT: | Scott B. Flaherty |
| Executive Vice President & Chief Financial Officer | |
| 561.413.0112 |
