Willis Lease Finance Corporation Reports Record 2025 Financial Results

COCONUT CREEK, Fla., March 10, 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 year ended December 31, 2025.

2025 Highlights (All metrics compared to 2024, except if noted)

• Record high annual total revenue of $730.2 million, an increase of 28.3%
• Record high pre-tax income of $160.6 million, an increase of 5.2%
• Record high lease rent revenue of $291.6 million, an increase of 22.4%
• Record high maintenance reserve revenue of $232.0 million, an increase of 8.4%
• Record high spare parts and equipment sales of $95.5 million, an increase of 252.3%
• Record high gain on sale of leased equipment of $54.0 million, an increase of 19.9%
• Record high net income attributable to common shareholders of $108.1 million, an increase of 3.5%
• Adjusted EBITDA of $459.1 million, an increase of 16.6%
• Average portfolio utilization increased to 84.9% for 2025, compared to 82.9%
  
  
  
  

Total revenue was $730.2 million for 2025, up 28.3% as compared to $569.2 million for 2024. For 2025, core lease rent and maintenance reserve revenues were $523.6 million in the aggregate, up 15.8% as compared to $452.1 million for 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.

"Our 2025 results were strong," said Austin C. Willis, Chief Executive Officer of WLFC. "Equally important however were the strategic initiatives and capital markets activities that we put in place to foster long term growth."

2025 Operating Results

Lease rent revenue increased by $53.4 million, or 22.4%, to $291.6 million in 2025 from $238.2 million in 2024. The increase is primarily due to an increase in the average size of the portfolio as compared to that of the prior 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.

Maintenance reserve revenue increased by $18.1 million, or 8.4%, to $232.0 million for 2025 from $213.9 million for 2024. During 2025, the Company recognized $44.5 million of long-term maintenance revenue compared to $39.4 million for 2024. Long-term maintenance revenue is influenced by end of lease compensation and the realization of long-term maintenance reserves associated with engines coming off lease. Engines on lease with "non-reimbursable" usage fees generated $187.5 million of short-term maintenance revenues for 2025 compared to $174.5 million for 2024, an increase of $13.0 million, or 7.4%. The increase in short-term maintenance reserve revenue was influenced by an increase in the number of engines on short-term lease conditions, the timing of recognition of in-substance fixed payments, and the systematic, contractual increase in the hourly and cyclical usage rates on our engines.

Spare parts and equipment sales for 2025 increased by $68.4 million, or 252.3%, to $95.5 million compared to $27.1 million for 2024. Spare part sales were $37.7 million and $26.1 million for 2025 and 2024, respectively, an increase of $11.6 million or 44.4%. The increase in spare parts sales reflects the demand for surplus material as operators seek to extend the lives of their current generation engine portfolios. Equipment sales for 2025 were $57.8 million related to the sale of four engines. Equipment sales for 2024 were $1.0 million related to the sale of one engine.

Gain on sale of leased equipment was $54.0 million in 2025, reflecting the sale of 38 engines, five airframes, and other parts and other parts and equipment from the lease portfolio. 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.

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 $3,614.5 million as of December 31, 2025.

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 $459.1 million and $393.7 million for the years ended December 31, 2025 and 2024, respectively. See below for the reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, net income attributable to common shareholders.

	Year Ended December 31,
		2025				2024
	(in thousands)
Net income attributable to common shareholders	$	108,066			$	104,378
Add: Income tax expense		46,849				44,033
Add: Interest expense		132,060				104,764
Add: Preferred stock dividends/costs		5,692				4,234
Add: Loss on debt extinguishment		3,081				—
Add: Depreciation and amortization expense		111,553				92,460
Add: Stock compensation expense (1)		44,566				29,247
Add: Write-down of equipment		32,947				11,228
Add: Acquisition, financing and divestitures related expenses		3,495				1,449
(Less) Add: Other (2)		(29,197	)			1,881
Adjusted EBITDA	$	459,112			$	393,674

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1. In 2025, upon the resignation of our former General Counsel, $5.3 million of stock compensation expense relates to the acceleration of vesting of shares.
2. In 2025, the Company recognized $43.0 million in relation to the gain on sale of the Bridgend Asset Management Limited business. In 2025 and 2024, the Company recognized $13.8 million and $1.9 million, respectively, in non-recurring project expenses associated with the sustainable aviation fuels project.
   
   
   
   

Balance Sheet

As of December 31, 2025, the Company's lease portfolio was $2,988.9 million, consisting of $2,801.7 million of equipment held in our operating lease portfolio, $139.9 million of notes receivable, $30.6 million of maintenance rights, and $16.6 million of investments in sales-type leases, which represented 363 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 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.

Conference Call

WLFC plans to hold a conference call led by members of WLFC's executive management team on Tuesday, March 10, 2026, at 10:00 a.m. Eastern Standard Time to discuss its fourth quarter and full year 2025 results.

To participate in the conference call, please use the following dial-in numbers:

US and Canada (800) 281-3044

International +1 (646) 307-1068

Conference ID 661343.

The conference call may also be accessed by registering via the following link:

https://event.webcasts.com/starthere.jsp?ei=1752912&tp_key=936d4d322e

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.

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.

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

Unaudited Consolidated Statements of Income

(In thousands, except per share data) 

	Three Months Ended December 31,									Year Ended December 31,
		2025			2024		% Change				2025			2024		% Change
REVENUE
Lease rent revenue	$	75,074		$	64,584		16.2	%		$	291,633		$	238,236		22.4	%
Maintenance reserve revenue		50,324			57,381		(12.3)	%			231,980			213,908		8.4	%
Spare parts and equipment sales		41,495			6,762		513.6	%			95,483			27,099		252.3	%
Interest revenue		3,150			3,718		(15.3)	%			14,093			11,683		20.6	%
Gain on sale of leased equipment		5,872			11,915		(50.7)	%			54,025			45,063		19.9	%
Gain on sale of financial assets		—			—		nm				378			—		nm
Maintenance services revenue		8,239			6,202		32.8	%			25,492			24,158		5.5	%
Other revenue		9,464			2,235		323.4	%			17,157			9,076		89.0	%
Total revenue		193,618			152,797		26.7	%			730,241			569,223		28.3	%
EXPENSES
Depreciation and amortization expense		30,317			24,157		25.5	%			111,553			92,460		20.7	%
Cost of spare parts and equipment sales		42,162			5,849		620.8	%			92,271			22,852		303.8	%
Cost of maintenance services		8,833			6,823		29.5	%			27,918			24,470		14.1	%
Write-down of equipment		9,179			10,362		(11.4)	%			32,947			11,228		193.4	%
General and administrative		47,396			42,452		11.6	%			194,735			146,757		32.7	%
Technical expense		9,294			4,370		112.7	%			31,384			22,294		40.8	%
Net finance costs:
Interest expense		32,220			29,386		9.6	%			132,060			104,764		26.1	%
Loss on debt extinguishment		118			—		nm				3,081			—		nm
Total net finance costs		32,338			29,386		10.0	%			135,141			104,764		29.0	%
Total expenses		179,519			123,399		45.5	%			625,949			424,825		47.3	%
Income from operations		14,099			29,398		(52.0)	%			104,292			144,398		(27.8)	%
Gain on sale of business		—			—		nm				42,950			—		nm
Income from joint ventures		3,740			992		277.0	%			13,365			8,247		62.1	%
Income before income taxes		17,839			30,390		(41.3)	%			160,607			152,645		5.2	%
Income tax expense		5,651			9,329		(39.4)	%			46,849			44,033		6.4	%
Net income		12,188			21,061		(42.1)	%			113,758			108,612		4.7	%
Preferred stock dividends		1,368			1,368		—	%			5,413			4,126		31.2	%
Accretion of preferred stock issuance costs		70			69		1.4	%			279			108		158.3	%
Net income attributable to common shareholders	$	10,750		$	19,624		(45.2)	%		$	108,066		$	104,378		3.5	%
Basic weighted average income per common share	$	1.58		$	2.97					$	16.00		$	15.97
Diluted weighted average income per common share	$	1.52		$	2.81					$	15.39		$	15.34
Basic weighted average common shares outstanding		6,806			6,603						6,754			6,536
Diluted weighted average common shares outstanding		7,057			6,983						7,020			6,804

Unaudited Consolidated Balance Sheets

(In thousands, except per share data)

		December 31, 2025				December 31, 2024
ASSETS
Cash and cash equivalents		$	16,441			$	9,110
Restricted cash			530,500				123,392
Equipment held for operating lease, less accumulated depreciation			2,801,683				2,635,910
Maintenance rights			30,632				31,134
Equipment held for sale			20,509				12,269
Receivables, net			35,717				38,291
Spare parts inventory			56,577				72,150
Investments			104,250				62,670
Property, equipment & furnishings, less accumulated depreciation			73,835				48,061
Intangible assets, net			271				2,929
Notes receivable, net			139,945				183,629
Investments in sales-type leases, net			16,595				21,606
Other assets			109,360				56,045
Total assets		$	3,936,315			$	3,297,196
LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued expenses		$	105,706			$	75,983
Deferred income taxes			228,547				185,049
Debt obligations			2,700,338				2,264,552
Maintenance reserves			116,185				97,817
Security deposits			24,651				23,424
Unearned revenue			35,350				37,911
Total liabilities			3,210,777				2,684,736
Redeemable preferred stock ($0.01 par value)			63,401				63,122
Shareholders' equity:
Common stock ($0.01 par value)			76				72
Paid-in capital in excess of par			72,663				50,928
Retained earnings			590,785				491,439
Accumulated other comprehensive (loss) income, net of tax			(1,387	)			6,899
Total shareholders' equity			662,137				549,338
Total liabilities, redeemable preferred stock and shareholders' equity		$	3,936,315			$	3,297,196