Willis Lease Finance Corporation Reports Record 2025 Financial Results

About this update from Willis Lease Finance Corporation

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) 307-1068Conference 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 Centreby 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 Source: Willis Lease Finance Corp.

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