Willis Lease Finance Corporation Reports Solid Third Quarter 2026 Financial Results with Record Revenues and Income From Investments
Equipment sales included five aircraft acquired through the WNG acquisition and sold to joint venture WMES.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Willis Lease Finance Corporation (WLFC) reported record third-quarter 2026 revenue of $246.3 million, while earnings attributable to common shareholders declined. Revenue rose 34.3% year over year, but common-shareholder income fell 55.3% to $10.228 million and diluted earnings per share dropped to $0.47 from $1.08. Operating income declined 69.8% to $11.485 million.
Spare parts and equipment sales reached $98.131 million, including $89.1 million of equipment sales. Lease rent revenue increased 10.2% to $84.4 million, while maintenance reserve revenue fell 48.3% to $39.326 million. Investment income rose 40.8% to $7.311 million. Adjusted EBITDA, a non-GAAP earnings measure, fell to $100.883 million from $135.003 million. For the first nine months, revenue increased 18.3% to $634.685 million, while common-shareholder income declined 35.6% to $62.635 million.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointTotal revenue rose 34.3% to $246.322 million in Q3 2026; nine-month revenue increased 18.3% to $634.685 million.
- Moderate pointOperating lease equipment increased to $3,024.361 million at September 30, 2026, from $2,801.683 million at year-end 2025.
- Minor pointLease rent revenue increased 10.2% to $84.379 million in Q3; nine-month revenue grew 10.3% to $238.901 million.
- Minor pointSpare parts and equipment sales reached $98.131 million versus $5.394 million; nine-month sales increased 161.2%.
- Minor pointMaintenance services revenue grew 208.5% to $11.217 million in Q3; nine-month revenue increased 73.7% to $29.969 million.
9 minor points
- Minor pointManagement and advisory fees increased 140.0% to $4.515 million in Q3; nine-month fees rose 178.9%.
- Minor pointInvestment income rose 40.8% to $7.311 million in Q3; nine-month income increased 51.0% to $14.532 million.
- Minor pointOther revenue increased 89.7% to $717 thousand in Q3; nine-month revenue rose 137.1% to $2.992 million.
- Minor pointNine-month financial-asset sale gains increased 56.6% to $592 thousand versus the comparable 2025 period.
- Minor pointEquipment write-downs decreased 56.4% to $4.450 million in Q3; nine-month write-downs fell 55.8%.
- Minor pointInterest expense declined 5.7% to $32.243 million in Q3; nine-month expense decreased 5.3%.
- Minor pointQ3 general and administrative expense decreased 0.9% to $48.732 million year over year.
- Minor pointQ3 debt-extinguishment losses decreased 81.0% to $562 thousand year over year.
- Minor point. Forward-looking: it has not happened yet and may not happen.Management expects core leasing profits to accelerate as the company realizes economies of scale.
Negative
- Moderate pointCommon-shareholder income fell 55.3% to $10.228 million in Q3; nine-month income declined 35.6% to $62.635 million.
- Moderate pointOperating income declined 69.8% to $11.485 million in Q3; nine-month income decreased 12.1% to $79.251 million.
- Moderate pointSpare parts and equipment sales costs rose 1,262.5% to $91.070 million in Q3; nine-month costs increased 140.6%.
- Moderate pointNine-month general and administrative expense increased 9.2% to $160.895 million year over year.
- Moderate pointNine-month debt-extinguishment losses increased 339.1% to $13.010 million year over year.
- Moderate pointNine-month business-sale gains were zero versus $42.950 million in the comparable 2025 period.
- Moderate pointRestricted cash fell to $122.610 million at September 30, 2026, from $530.500 million at year-end 2025.
11 minor points
- Minor pointDiluted earnings per share fell to $0.47 from $1.08 in Q3; nine-month earnings fell to $2.86 from $4.63.
- Minor pointAdjusted EBITDA fell to $100.883 million from $135.003 million in Q3; nine-month EBITDA also declined.
- Minor pointMaintenance reserve revenue fell 48.3% to $39.326 million in Q3; nine-month revenue declined 22.2%.
- Minor pointInterest revenue decreased 23.1% to $2.585 million in Q3; nine-month revenue fell 40.1%.
- Minor pointLeased-equipment sale gains fell 66.2% in Q3 to $5.452 million, despite increasing 15.2% over nine months.
- Minor pointMaintenance services costs increased 151.6% to $12.918 million in Q3; nine-month costs rose 68.3%.
- Minor pointDepreciation and amortization increased 9.4% to $31.367 million in Q3; nine-month expense rose 11.5%.
- Minor pointTechnical expense increased 61.6% to $13.495 million in Q3; nine-month expense rose 50.0%.
- Minor pointStock compensation expense rose to $12.262 million from $11.281 million in Q3; nine-month expense also increased.
- Minor pointAcquisition, financing and divestiture expenses rose to $1.164 million from $676 thousand in Q3.
- Minor pointCash and equivalents fell to $11.061 million at September 30, 2026, from $16.441 million at year-end 2025.
News Explained
The
Key Figures
- Total revenue
- $246.3 million; +34.3%
- Third quarter 2026 vs. third quarter 2025
- Lease rent revenue
- $84.4 million; +10.2%
- Third quarter 2026 vs. third quarter 2025
- Maintenance services revenue
- $11.2 million; +208.5%
- Third quarter 2026 vs. third quarter 2025
- Income from investments
- $7.3 million; +40.8%
- Third quarter 2026 vs. third quarter 2025
- Income from operations
- $11,485 thousand vs. $38,025 thousand; -69.8%
- Third quarter 2026 vs. third quarter 2025
- Net income attributable to common shareholders
- $10,228 thousand vs. $22,885 thousand; -55.3%
- Third quarter 2026 vs. third quarter 2025
Previous Earnings Reports
-
Operating income rose 20.2%, while revenue slipped 0.8% year over year.
-
Revenue rose 23.2%, with record lease rent revenue and higher common-shareholder net income.
-
Revenue and pre-tax income each rose 25.4% year over year.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
non-gaap financial measure financial
assets under management financial
noncontrolling interests financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
COCONUT CREEK, Fla., Nov. 03, 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 third quarter ended September 30, 2026.
Third Quarter 2026 Highlights (All metrics compared to third quarter 2025, except where noted)
- Record quarterly total revenue of
$246.3 million , an increase of34.3% - Record quarterly lease rent revenue of
$84.4 million , an increase of10.2% - Quarterly maintenance services revenue of
$11.2 million , an increase of208.5% - Quarterly management and advisory fees of
$4.5 million , an increase of140.0% - Record quarterly income from investments of
$7.3 million , an increase of40.8%
“Year to date we have focused on launching Willis Aviation Capital and growing AUM,” said Austin Willis, CEO of Willis Lease Finance Corporation, “as we now refocus on growing the entire Willis platform, inclusive of our balance sheet, we expect profits in our core leasing business to accelerate as we realize economies of scale.”
Third Quarter 2026 Operating Results
Lease rent revenue increased by
During the third quarter of 2026, the Company recognized
Spare parts and equipment sales increased by
For the quarter ended September 30, 2026, the gain on sale of leased equipment was
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 September 30, | Nine months ended September 30, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||
| (in thousands) | |||||||||||||
| Net income attributable to common shareholders | $ | 10,228 | $ | 22,885 | $ | 62,635 | $ | 97,316 | |||||
| Add: Income tax expense | 7,126 | 18,893 | 26,709 | 41,198 | |||||||||
| Add: Interest expense | 32,243 | 34,177 | 94,565 | 99,840 | |||||||||
| Add: Preferred stock dividends/costs | 1,446 | 1,439 | 4,291 | 4,254 | |||||||||
| Add: Loss on debt extinguishment | 562 | 2,963 | 13,010 | 2,963 | |||||||||
| Add: Depreciation and amortization expense | 31,367 | 28,662 | 90,613 | 81,236 | |||||||||
| Add: Stock compensation expense | 12,262 | 11,281 | 38,717 | 34,939 | |||||||||
| Add: Write-down of equipment | 4,450 | 10,201 | 10,509 | 23,768 | |||||||||
| Add: Acquisition, financing and divestitures related expenses | 1,164 | 676 | 5,966 | 1,504 | |||||||||
| Add: Other (1) | 35 | 3,826 | (1,546 | ) | (32,622 | ) | |||||||
| Adjusted EBITDA | $ | 100,883 | $ | 135,003 | $ | 345,469 | $ | 354,396 | |||||
________________________________________________________
- During the three months ended September 30, 2026 and 2025, the Company recognized
$11 thousand and$3.8 million , respectively, and$(1.6) million and$10.3 million , respectively, during the nine months ended September 30, 2026 and 2025 in non-recurring project expenses associated with the sustainable aviation fuel project, which the Company decided to cease further investment in. The negative expense recognized during the nine-month period ended September 30, 2026 reflects government grant proceeds recognized. Additionally, during the three and nine months ended September 30, 2026, the Company recognized$24 thousand in expense associated with reincorporation, and during the nine months ended September 30, 2025, the Company recognized$43.0 million in relation to the gain on sale of the BAML business.
Balance Sheet
As of September 30, 2026, the Company had
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 third 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: 6125236
Participant Passcode: 974110
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 September 30, | Nine months ended September 30, | ||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||
| REVENUE | |||||||||||||||||||
| Lease rent revenue | $ | 84,379 | $ | 76,552 | 10.2 | % | $ | 238,901 | $ | 216,559 | 10.3 | % | |||||||
| Maintenance reserve revenue | 39,326 | 76,054 | (48.3 | )% | 141,294 | 181,656 | (22.2 | )% | |||||||||||
| Spare parts and equipment sales | 98,131 | 5,394 | 1,719.3 | % | 140,998 | 53,988 | 161.2 | % | |||||||||||
| Interest revenue | 2,585 | 3,360 | (23.1 | )% | 6,556 | 10,943 | (40.1 | )% | |||||||||||
| Gain on sale of leased equipment | 5,452 | 16,134 | (66.2 | )% | 55,449 | 48,153 | 15.2 | % | |||||||||||
| Gain on sale of financial assets | — | — | nm | 592 | 378 | 56.6 | % | ||||||||||||
| Maintenance services revenue | 11,217 | 3,636 | 208.5 | % | 29,969 | 17,253 | 73.7 | % | |||||||||||
| Management and advisory fees | 4,515 | 1,881 | 140.0 | % | 17,934 | 6,431 | 178.9 | % | |||||||||||
| Other revenue | 717 | 378 | 89.7 | % | 2,992 | 1,262 | 137.1 | % | |||||||||||
| Total revenue | 246,322 | 183,389 | 34.3 | % | 634,685 | 536,623 | 18.3 | % | |||||||||||
| EXPENSES | |||||||||||||||||||
| Depreciation and amortization expense | 31,367 | 28,662 | 9.4 | % | 90,613 | 81,236 | 11.5 | % | |||||||||||
| Cost of spare parts and equipment sales | 91,070 | 6,684 | 1,262.5 | % | 120,584 | 50,109 | 140.6 | % | |||||||||||
| Cost of maintenance services | 12,918 | 5,135 | 151.6 | % | 32,128 | 19,085 | 68.3 | % | |||||||||||
| Write-down of equipment | 4,450 | 10,201 | (56.4 | )% | 10,509 | 23,768 | (55.8 | )% | |||||||||||
| General and administrative | 48,732 | 49,190 | (0.9 | )% | 160,895 | 147,339 | 9.2 | % | |||||||||||
| Technical expense | 13,495 | 8,352 | 61.6 | % | 33,130 | 22,090 | 50.0 | % | |||||||||||
| Net finance costs: | |||||||||||||||||||
| Interest expense | 32,243 | 34,177 | (5.7 | )% | 94,565 | 99,840 | (5.3 | )% | |||||||||||
| Loss on debt extinguishment | 562 | 2,963 | (81.0 | )% | 13,010 | 2,963 | 339.1 | % | |||||||||||
| Total net finance costs | 32,805 | 37,140 | (11.7 | )% | 107,575 | 102,803 | 4.6 | % | |||||||||||
| Total expenses | 234,837 | 145,364 | 61.6 | % | 555,434 | 446,430 | 24.4 | % | |||||||||||
| Income from operations | 11,485 | 38,025 | (69.8 | )% | 79,251 | 90,193 | (12.1 | )% | |||||||||||
| Gain on sale of business | — | — | nm | — | 42,950 | (100.0 | )% | ||||||||||||
| Income from investments | 7,311 | 5,192 | 40.8 | % | 14,532 | 9,625 | 51.0 | % | |||||||||||
| Income before income taxes | 18,796 | 43,217 | (56.5 | )% | 93,783 | 142,768 | (34.3 | )% | |||||||||||
| Income tax expense | 7,126 | 18,893 | (62.3 | )% | 26,709 | 41,198 | (35.2 | )% | |||||||||||
| Net income | 11,670 | 24,324 | (52.0 | )% | 67,074 | 101,570 | (34.0 | )% | |||||||||||
| Net income (loss) attributable to noncontrolling interests | (4 | ) | — | nm | 148 | — | nm | ||||||||||||
| Net income attributable to WLFC | 11,674 | 24,324 | (52.0 | )% | 66,926 | 101,570 | (34.1 | )% | |||||||||||
| Preferred stock dividends | 1,376 | 1,369 | 0.5 | % | 4,082 | 4,045 | 0.9 | % | |||||||||||
| Accretion of preferred stock issuance costs | 70 | 70 | — | % | 209 | 209 | — | % | |||||||||||
| Net income attributable to common shareholders | $ | 10,228 | $ | 22,885 | (55.3 | )% | $ | 62,635 | $ | 97,316 | (35.6 | )% | |||||||
| Basic weighted average income per common share | $ | 0.48 | $ | 1.12 | $ | 3.00 | $ | 4.82 | |||||||||||
| Diluted weighted average income per common share | $ | 0.47 | $ | 1.08 | $ | 2.86 | $ | 4.63 | |||||||||||
| Basic weighted average common shares outstanding | 21,154 | 20,439 | 20,875 | 20,208 | |||||||||||||||
| Diluted weighted average common shares outstanding | 21,941 | 21,093 | 21,904 | 21,021 | |||||||||||||||
Unaudited Condensed Consolidated Balance Sheets
(In thousands, except per share data)
| September 30, 2026 | December 31, 2025 | ||||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 11,061 | $ | 16,441 | |||
| Restricted cash | 122,610 | 530,500 | |||||
| Equipment held for operating lease, less accumulated depreciation | 3,024,361 | 2,801,683 | |||||
| Maintenance rights | 146,479 | 30,632 | |||||
| Equipment held for sale | 151,282 | 20,509 | |||||
| Receivables, net | 45,739 | 35,717 | |||||
| Spare parts inventory | 52,082 | 56,577 | |||||
| Investments | 167,361 | 104,250 | |||||
| Property, equipment & furnishings, less accumulated depreciation | 77,026 | 73,835 | |||||
| Intangible assets, net | 6,292 | 271 | |||||
| Notes receivable, net | 128,595 | 139,945 | |||||
| Investments in sales-type leases, net | — | 16,595 | |||||
| Due from affiliates | 3,152 | — | |||||
| Other assets | 116,323 | 109,360 | |||||
| Total assets | $ | 4,052,363 | $ | 3,936,315 | |||
| LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY | |||||||
| Liabilities: | |||||||
| Accounts payable and accrued expenses | $ | 145,874 | $ | 105,706 | |||
| Deferred income taxes | 290,061 | 228,547 | |||||
| Debt obligations | 2,524,677 | 2,700,338 | |||||
| Maintenance reserves | 201,671 | 116,185 | |||||
| Security deposits | 28,951 | 24,651 | |||||
| Unearned revenue | 29,966 | 35,350 | |||||
| Due to affiliates | 607 | — | |||||
| Total liabilities | 3,221,807 | 3,210,777 | |||||
| Redeemable preferred stock ( | 97,992 | 63,401 | |||||
| Shareholders’ equity: | |||||||
| Common stock ( | 228 | 229 | |||||
| Paid-in capital in excess of par | 83,517 | 72,510 | |||||
| Retained earnings | 644,228 | 590,785 | |||||
| Accumulated other comprehensive income (loss), net of tax | 1,518 | (1,387 | ) | ||||
| Total Willis Lease Finance Corporation shareholders’ equity | 729,491 | 662,137 | |||||
| Noncontrolling interests | 3,073 | — | |||||
| Total equity | 732,564 | 662,137 | |||||
| Total liabilities, redeemable preferred stock and equity | $ | 4,052,363 | $ | 3,936,315 | |||
CONTACT:
Scott B. Flaherty
Executive Vice President & Chief Financial Officer
561.413.0112
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were WLFC's third-quarter 2026 revenue and earnings?
WLFC reported $246.322 million in revenue and $10.228 million in income attributable to common shareholders for the quarter ended September 30, 2026. Revenue increased 34.3% year over year, while common-shareholder income declined 55.3%. Diluted earnings per share were $0.47, compared with $1.08.
What drove Willis Lease Finance's third-quarter 2026 equipment sales?
Equipment sales primarily reflected five aircraft acquired through the WNG acquisition and sold to WMES, the company's joint venture. WLFC acted in a warehouse capacity to facilitate those transactions. Total quarterly equipment sales were $89.1 million and covered five aircraft, two engines and one airframe, versus no equipment sales in the comparable 2025 quarter.
Why did WLFC's long-term maintenance revenue decline in the third quarter of 2026?
Long-term maintenance revenue fell because maintenance reserves and end-of-lease payments for assets coming off lease with long-term conditions were higher in the prior-year quarter. Revenue was $2.6 million, compared with $29.5 million. Short-term maintenance revenue was $36.8 million, compared with $46.6 million.
What happened to Willis Lease Finance's sustainable aviation fuel project?
WLFC decided to cease further investment in its sustainable aviation fuel project. Project expenses were $11 thousand in Q3 2026, compared with $3.8 million in Q3 2025. The negative $1.6 million expense recorded for the first nine months of 2026 reflected recognized government grant proceeds.