Willis Lease Finance Corporation Reports Record 2025 Financial Results
Delivers Record Pre-Tax Income of $160.6 Million and Record Revenue of $730.2 Million
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 | ||
________________________________________________________
- 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.
- 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 | |||
