Willis Lease Finance Corporation Reports Third Quarter 2025 Financial Results

Rhea-AI Summary

Willis Lease Finance (NASDAQ: WLFC) reported Q3 2025 revenue $183.4M (+25.4% YoY) and pre-tax income $43.2M (+25.4% YoY). Income from operations was $38.0M (+12.8%). The company recorded record lease rent revenue of $76.6M (+17.9%) and record maintenance reserve revenue of $76.1M (+52.8%).

Balance sheet: lease-assets book value $3,302.6M and lease portfolio $2,888.5M as of Sept 30, 2025. The company raised its recurring quarterly dividend to $0.40 per share, payable Nov 26, 2025 (record Nov 17, 2025). Portfolio utilization rose to 86.0%.

Positive

• Total revenue +25.4% to $183.4M (Q3 2025)
• Pre-tax income +25.4% to $43.2M (Q3 2025)
• Record maintenance reserve revenue +52.8% to $76.1M
• Record lease rent revenue +17.9% to $76.6M
• Raised quarterly dividend from $0.25 to $0.40 per share

Negative

• Notes receivable declined from $183.6M to $144.8M (Dec 31, 2024 to Sept 30, 2025)

Insights

Aviation finance strategist

WLFC delivered stronger top‑line growth, higher pre‑tax income and raised its quarterly dividend, signaling earnings strength and cash return to shareholders.

Quarterly total revenue of $183.4 million rose 25.4% year-over-year and quarterly pre-tax income of $43.2 million rose 25.4%, driven by record lease rent of $76.6 million and record maintenance reserve revenue of $76.1 million. The company also declared a higher quarterly dividend of $0.40 per share, up from the prior recurring $0.25.

The business mechanism is clear: larger portfolio size and higher utilization (portfolio utilization at 86.0%) increased lease and maintenance-related cash flows, while long-term maintenance recognition and gains on asset sales materially contributed to the quarter’s results (long‑term maintenance recognized $29.5 million; gain on sale $16.1 million). These items materially affected operating income and pre-tax profitability for the period.

Key dependencies and risks include the sustainability of maintenance reserve realizations and asset sale timing, which materially influenced results this quarter, and the need to maintain utilization levels to support recurring lease revenue. The balance sheet shows a book value of lease assets of $3,302.6 million and a lease portfolio of $2,888.5 million, which anchor future revenue but depend on lease placement and remarketing.

Concrete items to watch near term: the dividend payment schedule (record date Nov 17, 2025, payment date Nov 26, 2025), next quarter’s core lease rent and maintenance reserve trends, and any large asset sales or changes in utilization reported in upcoming disclosures. Expect the most relevant signals in the next quarter when recurring lease and maintenance revenue trends and any one‑time sale gains will reappear or normalize.

Delivers Quarterly Pre-Tax Income of $43.2 Million and Quarterly Revenue of $183.4 Million

Declares Fourth Quarter 2025 Dividend of $0.40 Per Share

COCONUT CREEK, Fla., Nov. 04, 2025 (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, 2025. The Company also announced a quarterly dividend of $0.40 per share, an increase to the Company’s recurring quarterly dividend of $0.25 per share, of common stock outstanding. The dividend is expected to be paid on November 26, 2025 to shareholders of record at the close of business on November 17, 2025.

Third Quarter 2025 Highlights (All metrics compared to third quarter 2024, except where noted)

• Quarterly total revenue of $183.4 million, an increase of 25.4%
• Income from operations of $38.0 million, an increase of 12.8%
• Quarterly pre-tax income of $43.2 million, an increase of 25.4%
• Record high lease rent revenue of $76.6 million, an increase of 17.9%
• Record high maintenance reserve revenue of $76.1 million, an increase of 52.8%
• Portfolio utilization increased to 86.0% at quarter end, compared to 82.9%
  
  

For the three months ended September 30, 2025, total revenue was $183.4 million, up 25.4% as compared to $146.2 million for the same period in 2024. For the third quarter of 2025, core lease rent and maintenance reserve revenues were $152.6 million in the aggregate, up 33.1% as compared to $114.7 million for the same period in 2024. The growth was predominantly driven by core lease and maintenance revenues associated with the continued strength of the aviation marketplace, as airlines leverage the Company’s extensive portfolio of in-demand engines as well as our parts and maintenance capabilities to avoid protracted, expensive engine shop visits.

“WLFC demonstrated continued momentum in the third quarter of 2025, reflecting the ongoing strength of the aviation marketplace, our platform and our portfolio,” said Austin C. Willis, Chief Executive Officer of WLFC. “The cost of new engines continues to drive demand from operators for our leasing model and the value created by our maintenance capabilities and other programs.”

Third Quarter 2025 Operating Results

Lease rent revenue increased by $11.6 million, or 17.9%, to $76.6 million in the three months ended September 30, 2025 from $64.9 million for the three months ended September 30, 2024. The increase is due to an increase in the average size of the portfolio as compared to that of the prior year period as well as an increase in average utilization (based on net book value of equipment held for operating lease, maintenance rights, and notes receivable and investments in sales-type leases net of allowances) of equipment held in our operating lease portfolio.

During the third quarter of 2025, the Company recognized $29.5 million of long-term maintenance revenue, compared to $1.2 million for the quarter ended September 30, 2024. Long-term maintenance is recognized at the end of a lease period as the related maintenance reserve liability is released from the balance sheet.

For the quarter ended September 30, 2025, the gain on sale of leased equipment was $16.1 million, reflecting the sale of 10 engines, one airframe, and other parts and equipment from the lease portfolio. During the three months ended September 30, 2024, the Company sold 13 engines and other parts and equipment for a net gain of $9.5 million.

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 $3,302.6 million as of September 30, 2025.

Balance Sheet

As of September 30, 2025, the Company’s lease portfolio was $2,888.5 million, consisting of $2,700.4 million of equipment held in its operating lease portfolio, $144.8 million of notes receivable, $27.0 million of maintenance rights, and $16.3 million of investments in sales-type leases, which represented 354 engines, 20 aircraft, one marine vessel, and other leased parts and equipment. 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 its 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.

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 2025 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: 2797388

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. Willis Sustainable Fuels intends to develop, build and operate projects to help decarbonize aviation.

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,
		2025			2024		% Change				2025			2024		% Change
REVENUE
Lease rent revenue	$	76,552		$	64,905		17.9	%		$	216,559		$	173,652		24.7	%
Maintenance reserve revenue		76,054			49,760		52.8	%			181,656			156,527		16.1	%
Spare parts and equipment sales		5,394			10,863		(50.3	)%			53,988			20,337		165.5	%
Interest revenue		3,360			3,412		(1.5	)%			10,943			7,965		37.4	%
Gain on sale of leased equipment		16,134			9,519		69.5	%			48,153			33,148		45.3	%
Gain on sale of financial assets		—			—		nm				378			—		nm
Maintenance services revenue		3,636			5,948		(38.9	)%			17,253			17,956		(3.9	)%
Other revenue		2,259			1,816		24.4	%			7,693			6,841		12.5	%
Total revenue		183,389			146,223		25.4	%			536,623			416,426		28.9	%
EXPENSES
Depreciation and amortization expense		28,662			23,650		21.2	%			81,236			68,303		18.9	%
Cost of spare parts and equipment sales		6,684			8,861		(24.6	)%			50,109			17,003		194.7	%
Cost of maintenance services		5,135			6,402		(19.8	)%			19,085			17,647		8.1	%
Write-down of equipment		10,201			605		1,586.1	%			23,768			866		2,644.6	%
General and administrative		49,190			40,037		22.9	%			147,339			104,305		41.3	%
Technical expense		8,352			5,151		62.1	%			22,090			17,924		23.2	%
Net finance costs:
Interest expense		34,177			27,813		22.9	%			99,840			75,378		32.5	%
Loss on debt extinguishment		2,963			—		nm				2,963			—		nm
Total net finance costs		37,140			27,813		33.5	%			102,803			75,378		36.4	%
Total expenses		145,364			112,519		29.2	%			446,430			301,426		48.1	%
Income from operations		38,025			33,704		12.8	%			90,193			115,000		(21.6	)%
Gain on sale of business		—			—		nm				42,950			—		nm
Income from joint ventures		5,192			756		586.8	%			9,625			7,255		32.7	%
Income before income taxes		43,217			34,460		25.4	%			142,768			122,255		16.8	%
Income tax expense		18,893			10,364		82.3	%			41,198			34,704		18.7	%
Net income		24,324			24,096		0.9	%			101,570			87,551		16.0	%
Preferred stock dividends		1,369			948		44.4	%			4,045			2,758		46.7	%
Accretion of preferred stock issuance costs		70			15		366.7	%			209			39		435.9	%
Net income attributable to common shareholders	$	22,885		$	23,133		(1.1	)%		$	97,316		$	84,754		14.8	%
Basic weighted average income per common share	$	3.36		$	3.51					$	14.45		$	13.01
Diluted weighted average income per common share	$	3.25		$	3.37					$	13.89		$	12.57
Basic weighted average common shares outstanding		6,813			6,582						6,736			6,513
Diluted weighted average common shares outstanding		7,031			6,859						7,007			6,745

Unaudited Condensed Consolidated Balance Sheets
(In thousands, except per share data)

		September 30, 2025				December 31, 2024
ASSETS
Cash and cash equivalents		$	12,885			$	9,110
Restricted cash			158,082				123,392
Equipment held for operating lease, less accumulated depreciation			2,700,373				2,635,910
Maintenance rights			27,044				31,134
Equipment held for sale			23,329				12,269
Receivables, net			42,289				38,291
Spare parts inventory			53,712				72,150
Investments			98,115				62,670
Property, equipment & furnishings, less accumulated depreciation			67,393				48,061
Intangible assets, net			271				2,929
Notes receivable, net			144,842				183,629
Investments in sales-type leases, net			16,281				21,606
Other assets			76,731				56,045
Total assets		$	3,421,347			$	3,297,196
LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITY
Liabilities:
Accounts payable and accrued expenses		$	79,648			$	75,983
Deferred income taxes			223,734				185,049
Debt obligations			2,239,451				2,264,552
Maintenance reserves			102,897				97,817
Security deposits			25,703				23,424
Unearned revenue			36,379				37,911
Total liabilities			2,707,812				2,684,736
Redeemable preferred stock ($0.01 par value)			63,331				63,122
Shareholders’ equity:
Common stock ($0.01 par value)			76				72
Paid-in capital in excess of par			67,379				50,928
Retained earnings			583,094				491,439
Accumulated other comprehensive (loss) income, net of tax			(345	)			6,899
Total shareholders’ equity			650,204				549,338
Total liabilities, redeemable preferred stock and shareholders’ equity		$	3,421,347			$	3,297,196

CONTACT:	Scott B. Flaherty
	Executive Vice President & Chief Financial Officer
	561.413.0112

FAQ

What were WLFC's reported Q3 2025 total revenue and pre-tax income?

WLFC reported $183.4M total revenue and $43.2M pre-tax income for Q3 2025.

How much did WLFC increase its quarterly dividend for Q4 2025 and when is it payable?

WLFC increased the recurring quarterly dividend to $0.40 per share, payable on Nov 26, 2025 to holders of record on Nov 17, 2025.

What drove WLFC's revenue growth in Q3 2025 (WLFC stock WLFC)?

Growth was driven by higher core lease rent and maintenance reserve revenues, supported by stronger engine leasing demand and parts/maintenance services.

How large is WLFC's lease portfolio and book value of lease assets as of Sept 30, 2025?

As of Sept 30, 2025 WLFC reported a lease portfolio of $2,888.5M and lease-assets book value of $3,302.6M.

What changes occurred in WLFC's portfolio utilization and maintenance revenue in Q3 2025?

Portfolio utilization rose to 86.0%, and long-term maintenance revenue recognized rose to $29.5M for the quarter.

Did WLFC report any material asset sales or gains in Q3 2025?

Yes; Q3 2025 included a $16.1M gain on sale of leased equipment from sales of 10 engines, one airframe, and other equipment.