COCONUT CREEK, Fla., July 15, 2025 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation (NASDAQ: WLFC) (the “Company”), the leading lessor of commercial aircraft engines and global provider of aviation services, today announced it will release its financial results for the second quarter of 2025 before the market opens on August 5, 2025. The Company will host a conference call led by the executive management team that day at 10:00 a.m. Eastern Time. To participate in the conference call, please use the foll ...

Core Insights - Willis Lease Finance Corporation (WLFC) announced a commitment from Jet2.com for two base maintenance lines at its subsidiary Willis Aviation Services Limited (WASL) for the upcoming season [1][2] - The expansion follows the successful completion of a single maintenance line for Jet2 earlier this year, showcasing WASL's strong performance [2] - The new maintenance lines will be conducted at WASL's state-of-the-art facility at Teesside International Airport, enhancing capacity in the UK MRO sector [3] Company Overview - WLFC is a leading lessor of commercial aircraft engines and provides aviation services globally, including leasing large and regional spare commercial aircraft engines and auxiliary power units [5] - The company integrates its leasing activities with engine and aircraft trading, asset management services, and various end-of-life solutions for engines and aviation materials [5] - WLFC's service offerings include Part 145 engine maintenance, aircraft line and base maintenance, and ground handling services [5] Industry Context - The demand for aircraft maintenance services remains high across the UK and Europe, prompting WASL's expansion to meet the needs of airlines and lessors globally [3] - The new facility is expected to create a significant number of highly skilled jobs, contributing to local economic growth and talent development in the aerospace industry [3][4]

Core Insights - Willis Lease Finance Corporation has successfully closed the sale of Bridgend Asset Management Limited to Willis Mitsui & Co. Engine Support Limited, leading to the renaming of BAML to Willis Mitsui & Co. Asset Management Limited [1][2] - The transaction aims to enhance the capabilities and efficiency of the WMES platform by integrating technical consultancy and records management services [3] - The joint venture WMES, established in 2011, currently manages assets worth approximately $380 million, with expectations for growth due to expanded service offerings [3] Company Developments - The sale marks a significant milestone for WLFC and its partnership with Mitsui, indicating a step towards closer collaboration and growth within the joint venture [4] - WLFC retains a 50% ownership stake in WMES and plans to leverage its services to support leasing operations while focusing on strategic initiatives to expand its aviation portfolio [4] Industry Context - The integration of consultancy and advisory services into WMES is positioned to better meet the growing demands of the global aviation market, solidifying the joint venture's role in delivering comprehensive engine-related services [4]

Core Points - Willis Lease Finance Corporation (WLFC) announced the completion of an offering of $524 million in Series A Fixed Rate Notes and $72 million in Series B Fixed Rate Notes [1] - The Notes are secured by a portfolio of 62 aircraft engines and two airframes, which will be acquired from WLFC or its subsidiaries [2] - The Series A Notes have a fixed coupon of 5.582% and the Series B Notes have a fixed coupon of 6.070%, with an expected maturity of approximately six years [3] Summary by Category Financial Offering - WLFC's wholly-owned subsidiary, Willis Engine Structured Trust VIII (WEST), completed an offering totaling $596 million in aggregate principal amount [1] - The final subscription for the Series A Notes was 3.60x (gross) and 5.10x (available), while the Series B Notes had a final subscription of 7.15x (gross) and 13.00x (available) [2] Notes Details - Series A Notes and Series B Notes have an expected weighted average life of 5.1 years and a final maturity of 25 years [3] - The Series A Notes were issued at a price of 99.99721% of par, and the Series B Notes at 99.99711% of par [3] Company Overview - WLFC specializes in leasing commercial aircraft engines and provides various aviation services, including engine maintenance and asset management [6] - The company also focuses on sustainable aviation initiatives through its Willis Sustainable Fuels division [6]

Core Points - Willis Lease Finance Corporation (WLFC) announced the pricing of $524 million in Series A Fixed Rate Notes and $72 million in Series B Fixed Rate Notes, totaling $596 million [1] - The Series A Notes have a fixed coupon of 5.582% and the Series B Notes have a fixed coupon of 6.070%, with an expected maturity of approximately six years and a final maturity of 25 years [2] Company Overview - WLFC is a leading lessor of commercial aircraft engines and provides global aviation services, including leasing large and regional spare commercial aircraft engines, auxiliary power units, and aircraft [5] - The company integrates its leasing activities with engine and aircraft trading, engine lease pools, and asset management services, along with various end-of-life solutions for engines and aviation materials [5] - WLFC's service offerings include Part 145 engine maintenance, aircraft line and base maintenance, and airport ground and cargo handling services [5]

Core Viewpoint - Willis Lease Finance Corporation (WLFC) is proposing to offer $596 million in total principal amount of fixed-rate notes through its subsidiary, Willis Engine Structured Trust VIII (WEST), secured by a portfolio of aircraft engines and airframes [1][2]. Group 1: Offering Details - The offering includes $524 million in Series A Fixed Rate Notes and $72 million in Series B Fixed Rate Notes [1]. - The notes will be secured by WEST's interests in a portfolio of 62 aircraft engines and two airframes, which will be acquired from WLFC or its subsidiaries [1]. Group 2: Use of Proceeds - The net proceeds from the notes will be used to pay fees and expenses related to the offering, deposit amounts in reserve accounts, and pay WLFC for the aircraft engines and airframes over a 270-day delivery period [2]. - WLFC and its subsidiaries will utilize any net proceeds received to repay debt collateralized by the assets and for general corporate purposes [2]. Group 3: Regulatory Information - The notes will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States without registration or an exemption [3]. - The offering is limited to "qualified institutional buyers" as defined under Rule 144A and non-U.S. persons in accordance with Regulation S [3].

Core Viewpoint - Willis Lease Finance Corporation has appointed Z. Clifton ("Clif") Dameron as Senior Vice President, General Counsel, and Corporate Secretary, succeeding Dean M. Poulakidas, who has stepped down to pursue other opportunities [1][2]. Company Overview - Willis Lease Finance Corporation is a leading lessor of commercial aircraft engines and provides global aviation services, including leasing large and regional spare commercial aircraft engines, auxiliary power units, and aircraft to various clients worldwide [3]. - The company integrates its leasing activities with engine and aircraft trading, engine lease pools, and asset management services through Willis Asset Management Limited, along with end-of-life solutions for engines and aviation materials via Willis Aeronautical Services, Inc. [3]. Leadership Transition - Clif Dameron joined WLFC in 2024 as a Senior Vice President and has a strong background in aviation and corporate law, having previously served as Chief Legal Officer at Carlyle Aviation Partners and held roles at other notable firms [2]. - Dameron expressed his commitment to building upon the achievements of his predecessor and emphasized the market opportunities ahead for WLFC [3].

Core Insights - Willis Lease Finance Corporation (WLFC) shares have declined 9.5% since reporting earnings for Q1 2025, underperforming the S&P 500 index which dipped only 0.2% during the same period [1] - The company reported a net income of $2.21 per share for Q1 2025, down from $3.00 per share in Q1 2024, despite achieving record revenues of $157.7 million, a 32.5% increase from $119.1 million in the prior year [2][3] - Net income attributable to common shareholders fell 22.5% to $15.5 million from $20 million in Q1 2024, primarily due to increased operating and finance costs [2] Revenue and Operating Highlights - Lease rent revenue increased by 28.1% year over year to $67.7 million, while maintenance reserve revenues rose 25% to $54.9 million, contributing to a total of $122.6 million in core recurring revenues, up from $96.8 million a year earlier [3] - Spare parts and equipment sales surged to $18.2 million from $3.3 million, partly due to a one-time $7 million transaction [3] - Interest revenues climbed 73.4% to $3.9 million, but gains on the sale of leased equipment dropped 51.8% to $4.4 million due to fewer profitable asset dispositions [3] Cost and Expense Analysis - Total expenses rose 45.7% year over year to $133.8 million, driven by a 61.3% increase in general and administrative costs to $47.7 million, largely due to consulting fees for the sustainable aviation fuel initiative [4] - Interest expense surged nearly 40% year over year to $32.1 million, reflecting higher debt levels and cost of capital [6] - Costs related to spare parts and equipment sales grew more than sixfold to $15.3 million, contributing to a 19.2% drop in net income [6] Management Commentary - CEO Austin Willis highlighted the company's strategic positioning within a recovering aviation industry, emphasizing confidence in long-term fundamentals despite market volatility [5] - The high cost of new engines is reinforcing leasing demand, with WLFC's maintenance and leasing solutions providing value to cost-conscious airlines [5] Other Developments - During the quarter, WLFC recorded $2.2 million in equipment sales related to one engine and $4.4 million in gains from the sale of seven engines and one airframe [7] - The company declared a second-quarter dividend of 25 cents per share, payable on May 22, 2025 [7]

COCONUT CREEK, Fla., May 08, 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 it has entered into an agreement to sell Bridgend Asset Management Limited, the consultancy and advisory arm of WLFC, to Willis Mitsui & Co. Engine Support Limited (“WMES”), its longstanding joint venture with Mitsui & Co., Ltd (“Mitsui”). This strategic move reflects WLFC’s ...

PART I. FINANCIAL INFORMATION [Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) The unaudited condensed consolidated financial statements for Q1 2025 present key financial positions and performance metrics [Condensed Consolidated Balance Sheets](index=4&type=page&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of March 31, 2025, reflects total assets of $3.27 billion and liabilities of $2.65 billion Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$3,274,633** | **$3,297,196** | | Equipment held for operating lease, net | $2,597,792 | $2,635,910 | | Cash and cash equivalents | $32,356 | $9,110 | | **Total Liabilities** | **$2,645,953** | **$2,684,736** | | Debt obligations | $2,231,593 | $2,264,552 | | **Total Shareholders' Equity** | **$565,488** | **$549,338** | [Condensed Consolidated Statements of Income](index=6&type=page&id=Condensed%20Consolidated%20Statements%20of%20Income) Total revenue for Q1 2025 increased 32.5% to $157.7 million, but net income declined due to increased expenses Statement of Income Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenue | $157,732 | $119,083 | | Lease rent revenue | $67,739 | $52,881 | | Maintenance reserve revenue | $54,859 | $43,870 | | Spare parts and equipment sales | $18,240 | $3,288 | | Total expenses | $133,829 | $91,865 | | General and administrative | $47,720 | $29,581 | | Net income attributable to common shareholders | $15,476 | $19,957 | | Diluted weighted average income per common share | $2.21 | $3.00 | [Condensed Consolidated Statements of Comprehensive Income](index=7&type=page&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income for Q1 2025 was $12.3 million, reflecting net income offset by other comprehensive losses Comprehensive Income Summary (in thousands) | Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $16,869 | $20,869 | | Other comprehensive loss | $(4,535) | $(1,114) | | **Total comprehensive income** | **$12,334** | **$19,755** | [Condensed Consolidated Statements of Redeemable Preferred Stock and Shareholders' Equity](index=8&type=page&id=Condensed%20Consolidated%20Statements%20of%20Redeemable%20Preferred%20Stock%20and%20Shareholders%27%20Equity) Shareholders' equity increased to $565.5 million by March 31, 2025, primarily due to net income and stock-based compensation - Key changes in shareholders' equity for Q1 2025 included net income of **$16.9 million**, other comprehensive loss of **$4.5 million** (net of tax), stock-based compensation of **$6.9 million**, and payment of common and preferred dividends totaling **$3.2 million**[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=page&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was $41.0 million in Q1 2025, with investing providing cash and financing using cash Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $41,013 | $59,827 | | Net cash provided by (used in) investing activities | $13,689 | $(63,764) | | Net cash used in financing activities | $(38,111) | $(69,850) | | **Increase (decrease) in cash** | **$16,591** | **$(73,787)** | [Notes to Condensed Consolidated Financial Statements](index=11&type=page&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, portfolio, debt, and segment performance, highlighting key financial commitments - The financial statements are prepared in accordance with U.S. GAAP for interim reporting and do not include all disclosures required for annual statements. Management asserts that all necessary adjustments for a fair presentation have been included[33](index=33&type=chunk) - As of March 31, 2025, the company had a total of five engines with a net book value of **$43.5 million** on lease with China-based lessees. Additionally, its joint ventures had five engines with a net book value of **$38.9 million** on lease with China-based lessees[38](index=38&type=chunk) - The company's lease portfolio as of March 31, 2025, was valued at **$2.6 billion** and included 347 engines, 15 aircraft, and one marine vessel[41](index=41&type=chunk) - In March 2025, the company formed a new joint venture, Willis Global Engine Testing ("WGET"), with Global Engine Maintenance, holding a **70% interest**. The company made an initial capital contribution of **$1.6 million**[46](index=46&type=chunk) - As of March 31, 2025, the company had **$1.1 billion** in purchase commitments for equipment expected to be satisfied within five fiscal years[63](index=63&type=chunk) - The company has two reportable segments: Leasing and Related Operations, and Spare Parts Sales. For Q1 2025, Leasing and Related Operations generated **$22.6 million** in operating income, while Spare Parts Sales generated **$1.4 million**[88](index=88&type=chunk)[91](index=91&type=chunk) - Subsequent to the quarter end, on April 23, 2025, the company closed a JOLCO (Japanese operating lease with call option) transaction that provided **$19.8 million** in financing. On April 30, 2025, the Board declared a quarterly dividend of **$0.25 per common share**[95](index=95&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights Q1 2025 revenue growth, offset by increased G&A expenses, while maintaining strong liquidity - The company's core business is leasing commercial aircraft and engines. As of March 31, 2025, its portfolio included 347 engines and 15 aircraft, with a total value of **$2.6 billion** in equipment held for operating lease[98](index=98&type=chunk) - The company is evaluating the potential impact of the high interest rate and inflationary environment, as well as new or increased tariffs, on its business and financial position[101](index=101&type=chunk) [Results of Operations](index=26&type=page&id=Results%20of%20Operations) Q1 2025 revenue grew 32.5% to $157.7 million, driven by lease and parts sales, but net income declined due to increased expenses Revenue Changes: Q1 2025 vs Q1 2024 | Revenue Category | Q1 2025 (in thousands) | Q1 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Lease rent revenue | $67,739 | $52,881 | 28.1% | | Maintenance reserve revenue | $54,859 | $43,870 | 25.0% | | Spare parts and equipment sales | $18,240 | $3,288 | 454.7% | | **Total revenue** | **$157,732** | **$119,083** | **32.5%** | - General and administrative expenses increased by **$18.1 million** (**61.3%**), primarily due to an **$11.4 million** increase in consultant-related fees for the company's sustainable aviation fuel project and a **$4.3 million** increase in personnel costs[117](index=117&type=chunk) - Net finance costs increased by **$9.1 million** (**39.5%**) due to a higher level of debt and a higher weighted average borrowing cost[119](index=119&type=chunk) - The effective tax rate for Q1 2025 was **33.2%**, up from **30.2%** in Q1 2024. The rate is higher than the **21%** federal statutory rate primarily due to limitations on the deductibility of executive compensation[120](index=120&type=chunk) [Financial Position, Liquidity and Capital Resources](index=28&type=page&id=Financial%20Position%2C%20Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company maintained $32.4 million in cash, generated $41.0 million from operations, and complied with debt covenants - Cash flow from operations decreased by **$18.8 million** (**31.4%**) YoY, primarily due to changes in accounts payable and inventory, reflecting significant inventory purchases in the prior period to meet high demand for spare parts[123](index=123&type=chunk) - At March 31, 2025, the company was in compliance with all debt covenants, including the Interest Coverage Ratio and Total Leverage Ratio[131](index=131&type=chunk) - The company paid **$1.8 million** in common stock dividends and **$1.6 million** in preferred stock dividends during Q1 2025[126](index=126&type=chunk)[128](index=128&type=chunk) [Contractual Obligations and Commitments](index=30&type=page&id=Contractual%20Obligations%20and%20Commitments) Total contractual commitments as of March 31, 2025, were $3.84 billion, including debt and significant equipment purchase obligations Summary of Contractual Commitments (in thousands) | Obligation Type | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | | :--- | :--- | :--- | :--- | :--- | :--- | | Debt obligations | $2,258,346 | $71,232 | $666,264 | $1,426,047 | $94,803 | | Purchase obligations | $1,055,225 | $250,221 | $339,615 | $340,074 | $125,315 | | **Total** | **$3,838,467** | **$455,850** | **$1,240,948** | **$1,912,139** | **$229,530** | - The company has commitments to purchase 30 new LEAP-1A and 21 new LEAP-1B engines for an aggregate total of **$912.6 million** by 2030, plus 28 used engines for approximately **$142.6 million** in 2025[133](index=133&type=chunk) - The company has committed to future overhaul and maintenance services related to a 2020 engine purchase, anticipated to range between **$97.1 million** and **$126.6 million** by 2030[134](index=134&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces primary market risks from interest rate fluctuations on variable debt and currency devaluation impacting non-U.S. lease revenues - As of March 31, 2025, **$862.7 million** of the company's debt is variable rate. A **1%** increase or decrease in interest rates on this debt would change annual interest expense by approximately **$4.4 million**, net of interest rate swaps[138](index=138&type=chunk) - The company is exposed to currency risk as **73%** of its lease rent revenues in Q1 2025 came from non-U.S. domiciled lessees. Devaluation of local currencies against the U.S. dollar could make it difficult for lessees to make payments[140](index=140&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective to provide reasonable assurance that required information is recorded, processed, and reported in a timely manner[141](index=141&type=chunk) - No changes occurred in the company's internal control over financial reporting during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, these controls[143](index=143&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings for the period - None[145](index=145&type=chunk) [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors occurred, except for a new risk concerning potential adverse effects of duties, tariffs, and trade barriers - A new risk factor has been identified concerning the potential adverse effects of the imposition of duties, tariffs, and other trade barriers by the U.S. and other governments[147](index=147&type=chunk) - In early 2025, the U.S. announced significant new tariffs on foreign imports, including a baseline **10%** tariff from most countries, creating uncertainty for the company's business[148](index=148&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No common stock repurchases occurred in Q1 2025, with approximately $39.6 million remaining available under the current plan - No shares were repurchased during the three months ended March 31, 2025[149](index=149&type=chunk) - As of March 31, 2025, approximately **$39.6 million** remained available for purchase under the company's common stock repurchase plan[149](index=149&type=chunk) [Defaults Upon Senior Securities](index=33&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[150](index=150&type=chunk) [Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[151](index=151&type=chunk) [Other Information](index=33&type=section&id=Item%205.%20Other%20Information) President Brian R. Hole adopted a Rule 10b5-1 trading arrangement on March 27, 2025, for the sale of up to 18,453 common shares - On March 27, 2025, Brian R. Hole, President, adopted a Rule 10b5-1 trading arrangement to sell up to **18,453 shares** of common stock[153](index=153&type=chunk) [Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents and required certifications