Willis Lease Finance Corporation Reports Solid Third Quarter 2026 Financial Results with Record Revenues and Income From Investments

Willis Lease Finance Corporation Reports Solid Third Quarter 2026 Financial Results with Record Revenues and Income From Investments Willis Lease Finance Corporation Reports Solid Third Quarter 2026 Financial Results with Record Revenues and Income From Investments GlobeNewswire November 03, 2026

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)

“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 $7.8 million, or 10.2%, to $84.4 million in the three months ended September 30, 2026 from $76.6 million for the three months ended September 30, 2025. The increase is due to an increase in the average size of the portfolio as compared to that of the prior year period and a strong lease rate factor.

During the third quarter of 2026, the Company recognized $2.6 million of long-term maintenance revenue, compared to $29.5 million for the quarter ended September 30, 2025, as the maintenance reserves and end-of-lease payments for assets coming off lease with long-term conditions were higher in the prior comparable period. Long-term maintenance revenue is influenced by end-of-lease compensation and the realization of long-term maintenance reserves associated with assets coming off lease. Engines on lease with “non-reimbursable” usage fees generated $36.8 million of short-term maintenance revenues, compared to $46.6 million in the comparable prior period. Short-term maintenance revenues are a proxy for flight time of our portfolio of engines.

Spare parts and equipment sales increased by $92.7 million, to $98.1 million for the three months ended September 30, 2026, compared to $5.4 million for the three months ended September 30, 2025. Spare parts sales were $9.1 million and $5.4 million for the three months ended September 30, 2026 and 2025, respectively, an increase of $3.7 million, or 67.8%, compared to the same period in 2025. The increase in spare parts sales reflects variations in the timing of sales to third-party customers and is not reflective of intra-company sales as the parts business provides used serviceable material across the broader Willis platform. Equipment sales for the three months ended September 30, 2026 were $89.1 million for the sale of five aircraft, two engines, and one airframe. There were no equipment sales for the three months ended September 30, 2025. The increase in equipment sales primarily reflects the sale of five aircraft acquired in connection with the WNG Acquisition to the Company’s joint venture, Willis Mitsui & Company Engine Support Limited (“WMES”), where the Company acted in a warehouse capacity to effect these transactions.

For the quarter ended September 30, 2026, the gain on sale of leased equipment was $5.5 million, reflecting the sale of eight engines and other parts and equipment from the lease portfolio. During the three months ended September 30, 2025, the Company sold 10 engines, one airframe, and other parts and equipment for a net gain of $16.1 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 $4,174.2 million as of September 30, 2026.

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 $4.9 billion as of September 30, 2026.

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 $100.9 million and $135.0 million for the three months ended September 30, 2026 and 2025, respectively, and $345.5 million and $354.4 million for the nine months ended September 30, 2026 and 2025, respectively. See below for the reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, net income attributable to common shareholders.

 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 

________________________________________________________

  1. 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 $3,024.4 million of equipment held in our operating lease portfolio, $128.6 million of notes receivable, and $146.5 million of maintenance rights, which represented 341 engines, 31 aircraft, one marine vessel, and other leased parts and equipment. As of December 31, 2025, the Company had $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.

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 ($0.01 par value)  97,992  63,401 
     
Shareholders’ equity:    
Common stock ($0.01 par value)  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


Primary Logo