COCONUT CREEK, Fla., Oct. 21, 2025 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation (NASDAQ: WLFC) (“WLFC”), the leading lessor of commercial aircraft engines and global provider of aviation services, announced today that its subsidiary, Willis Aviation Services Limited (“WASL”), a premier provider of aircraft maintenance, repair and overhaul (“MRO”) services, has signed a 250-year lease for an additional 50 acres at Teesside International Airport (“Teesside”) in Northeastern England. The agreement refl ...

COCONUT CREEK, Fla., Oct. 20, 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 third quarter of 2025 before the market opens on November 4, 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 fol ...

COCONUT CREEK, Fla., Oct. 13, 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, announced today that its subsidiary, Willis Aviation Services Limited (“WASL”), a premier provider of aircraft maintenance, repair and overhaul (“MRO”) services, has opened its second and third narrow-body hangars at Teesside International Airport (“Teesside”) in Northeastern England. The ...

Core Insights - Willis Lease Finance Corporation (WLFC) has selected Wilton International in Teesside for its Sustainable Aviation Fuel (SAF) project, aiming to produce 14,000 tonnes of SAF annually starting in 2028, with over 80% reduction in greenhouse gas emissions compared to conventional jet fuel [1][2] - The project has received a £2.9 million grant from the UK Department for Transport's Advanced Fuels Fund to support its development from July 2025 to March 2026 [2] - The plant will convert sustainable biomethane sourced from waste into aviation fuel, creating approximately 50 permanent jobs and 200 roles during construction [3] Company Overview - WLFC is a leading lessor of commercial aircraft engines and provides various aviation services, including maintenance and repair solutions [5] - The company aims to develop projects that help decarbonize aviation through its subsidiary, Willis Sustainable Fuels [5] Strategic Importance - The selection of Wilton International highlights its strategic location and infrastructure, which are essential for the next generation of SAF production, reinforcing the UK's leadership in sustainable aviation [2][4] - The partnership with Sembcorp Energy UK emphasizes the commitment to enabling the UK's energy transition and supporting industrial decarbonization [4]

Core Insights - Willis Lease Finance Corporation (WLFC) has appointed Pascal Picano as Senior Vice President of Aircraft Leasing & Trading to enhance its aircraft leasing portfolio and support investment in next-generation aviation assets [1][3][4] 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 to various aviation stakeholders [5] - The company integrates its leasing activities with end-of-life solutions for engines and aviation materials through Willis Aeronautical Services, Inc. [5] Leadership Changes - Pascal Picano will report directly to CEO Austin C. Willis and collaborate with Marc Pierpoint, Senior Vice President, Head of Trading & Investments, to drive growth in WLFC's portfolio [2][3] - Picano brings over 25 years of experience in aviation finance, specializing in aircraft acquisition, leasing, and capital raising, having held senior roles at Avia Solutions Group and Carlyle Aviation Partners [4]

Group 1 - Supply chain disruptions have positively impacted leasing companies in the aviation sector, leading to a global shortage of aircraft and engine parts [1] - Engine lessors, such as Willis Lease Finance, have benefited significantly from these disruptions [1] Group 2 - The article does not provide any specific financial data or performance metrics related to the companies mentioned [2][3] - There are no investment recommendations or advice given in the article [2][3]

Core Insights - Shares of Willis Lease Finance Corporation (WLFC) increased by 8.1% post-earnings report for Q2 2025, outperforming the S&P 500's 1% growth during the same period [1] - The company reported Q2 2025 EPS of $8.43, a significant increase from $6.21 in Q2 2024 [1] Revenue and Earnings Performance - WLFC's total revenues reached $195.5 million, marking a 29.4% increase from $151.1 million in the previous year, driven by strong lease rent growth and increased spare parts and equipment sales [2] - Lease rent revenue rose 29.4% year over year to $72.3 million, while net income attributable to common shareholders surged 41.5% to $59 million [2] Key Business Metrics - Maintenance reserve revenues decreased by 19.3% year over year to $50.7 million due to timing differences and fewer engines coming off long-term leases [3] - Recurring short-term maintenance reserve revenue increased by 9.5%, reflecting higher engine utilization and contractual rate increases [4] - Spare parts and equipment sales skyrocketed nearly 391% to $30.4 million, driven by a large engine sale and strong demand as airlines extended fleet life [4] - The company's portfolio utilization rate improved to 88.3% at quarter end, up from 76.7% at year-end 2024 [4] Management Commentary - CEO Austin C. Willis attributed the record performance to a durable business model, rising lease rates, and strong demand for integrated maintenance and parts services [5] - CFO Scott B. Flaherty highlighted higher equipment sales, stronger lease revenues, and a $43 million gain from the consultancy business sale as key profitability drivers [5] Factors Influencing Financial Results - Revenue growth was bolstered by higher gross equipment sales, increased utilization, and strong demand for fixed asset trading, resulting in a $27.6 million gain on the sale of leased equipment, up 91.2% from the prior year [6] - Expenses rose significantly, with general and administrative costs up 45.4% and technical expenses up 66.2%, partly due to increased engine repair activity and legal costs [6] - Interest expense increased by 36.7% due to higher debt levels associated with expanded portfolio investments [6] Other Developments - WLFC sold its U.K.-based aviation consultancy business, generating a $43 million gain, which was part of a strategic reallocation towards core leasing and maintenance operations [8] - In July, Willis Aviation Services secured a commitment from Jet2.com for two base maintenance lines in the U.K., indicating ongoing expansion in maintenance capabilities [8]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________________ FORM 10-Q For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-15369 ______________________________________________________________________ WILLIS LEASE FINANCE CORPORATION (Exact name of registrant as specified in its charter) | Delawar ...

Financial Data and Key Metrics Changes - The company achieved record quarterly total revenue of $195.5 million, an increase of 29.4% year-over-year [3][16] - Earnings before taxes (EBT) for the quarter were $74.3 million, up 28.3% from the same period in 2024 [16][27] - Net income attributable to common shareholders was $59 million, reflecting a 41.5% increase from the prior year [16][28] - Average portfolio utilization increased to 87.2% for the quarter, compared to 83% in the same period last year, ending the quarter at 88.3% [18][32] Business Line Data and Key Metrics Changes - Core lease rent revenue was $72.3 million, up 29.4% from the prior year [17] - Interest revenue increased by 59.8% to $3.6 million, driven by growth in long-term loan-like financings [17] - Maintenance reserve revenues were $50.7 million, down from $62.9 million in the prior year, with short-term maintenance reserve revenues increasing by 9.5% [19][24] - Fair parts and equipment sales surged by 391% to $30.4 million, attributed to the sale of one engine [20] Market Data and Key Metrics Changes - The company noted a positive trend in the aviation marketplace, with airlines increasingly relying on leasing and maintenance solutions to avoid costly engine shop visits [4][9] - The leasing rates have increased by approximately 9% year-over-year, indicating stability in the market [35] Company Strategy and Development Direction - The company aims to leverage its differentiated asset portfolio and integrated maintenance capabilities to drive growth [5][14] - The launch of the SOAR lean business system is intended to improve operational efficiency and service quality [9] - The company is focused on maintaining a strong cash flow while returning capital to shareholders through dividends [4][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational excellence and innovation driving future growth [14] - The company anticipates no negative pressure on lease rates in the near term, supported by a significant portion of its portfolio in next-generation equipment [36] - Management highlighted the positive impact of recent agreements between the US and EU regarding zero tariffs on aircraft and parts [13][14] Other Important Information - The company completed its largest engine ABS transaction to date, reflecting strong market confidence [14] - The sale of the consulting business to a joint venture is expected to enhance capital for core leasing growth while maintaining access to consulting capabilities [12][27] - The company received over $6 million in grant proceeds from the UK government for staff initiatives [8][62] Q&A Session Summary Question: Impact of OEM production on lease rates - Management noted lease rates have increased about 9% year-over-year and expect stability in rates despite improvements in OEM production [35][36] Question: Parting out of young aircraft - Management acknowledged the trend of airlines parting out younger aircraft for engines, indicating strong demand for engines in the market [39][40] Question: Average utilization rate for the quarter - The average utilization rate for the quarter was reported at 87.2%, with an end-of-quarter rate of 88.3% [44][46] Question: Employee count and impact of consulting business sale - The employee count was approximately 420, and the sale of the consulting business is expected to positively impact operating income through additional equity [49][50] Question: Maintenance service revenues and costs - Management clarified that the maintenance service revenues were impacted by increased labor costs associated with new contracts, affecting margins [51][53] Question: Timing of grant revenue recognition - Management confirmed that grant proceeds received in the second quarter would be recognized in the P&L, with additional grants expected to be recognized upon receipt [62][63]

Second Quarter 2025 Financial Results [Performance Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Willis Lease Finance Corporation achieved record Q2 2025 results with significant revenue growth, record pre-tax income, and improved portfolio utilization | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | Total Revenue | $195.5 million | +29.4% | | Pre-Tax Income | $74.3 million | Record High | | Lease Rent Revenue | $72.3 million | +29.4% | | Maintenance Reserve Revenue | $50.7 million | -19.3% (YoY) | | Spare Parts & Equipment Sales | $30.4 million | +390.7% | - A significant one-time event was the sale of the company's aviation consultancy business to the Willis Mitsui & Company Engine Support Limited (WMES) joint venture, resulting in a **$43.0 million** gain[5](index=5&type=chunk)[7](index=7&type=chunk) - Portfolio utilization increased significantly to **88.3%** at the end of Q2 2025, compared to **76.7%** at the end of 2024, indicating stronger demand for the company's leased assets[5](index=5&type=chunk) [Operating Results Analysis](index=1&type=section&id=Operating%20Results%20Analysis) Q2 2025 operating results show robust growth in core revenues, spare parts sales, and significant gains from asset and business divestitures [Revenue Analysis](index=1&type=section&id=Revenue%20Analysis) Total revenue surged by **29.4%** to **$195.5 million** in Q2 2025, driven by growth in core lease, maintenance, and spare parts sales | Revenue Stream | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | $195.5M | $151.1M | +29.4% | | Core Lease & Maintenance Revenue | $123.0M | $118.8M | +4.0% | | Short-term Maintenance Revenue | $50.2M | $45.9M | +9.5% | | Spare Parts & Equipment Sales | $30.4M | $6.2M | +390.7% | - The growth in core lease and maintenance revenues was attributed to the continued strength of the aviation market, leading airlines to increasingly use the company's leasing and maintenance services[2](index=2&type=chunk) - The significant increase in spare parts and equipment sales was primarily due to the sale of one engine for **$21.1 million** and heightened demand for surplus materials as operators extend the life of their engine portfolios[4](index=4&type=chunk) [Asset Sales and Portfolio](index=3&type=section&id=Asset%20Sales%20and%20Portfolio) Q2 2025 saw significant gains from asset sales, including **$27.6 million** from equipment and **$43.0 million** from the UK consultancy business divestiture - The company sold 14 engines, two airframes, and other equipment from its lease portfolio, resulting in a gain on sale of **$27.6 million**, a significant increase from the **$14.4 million** gain in Q2 2024[6](index=6&type=chunk) - The sale of Bridgend Asset Management Limited (BAML), the UK aviation consultancy business, to the WMES joint venture generated a gain of approximately **$43.0 million**[7](index=7&type=chunk) | Lease Portfolio Value | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Lease Portfolio | $2,830.0M | $2,872.3M | | Engines | 348 | 354 | | Aircraft | 15 | 16 | [Financial Statements](index=5&type=section&id=Financial%20Statements) Unaudited Q2 2025 financial statements show substantial growth in net income, diluted EPS, and total assets, primarily funded by increased debt [Unaudited Condensed Consolidated Statements of Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Income) Q2 2025 income statements show total revenue of **$195.5 million** (+**29.4%**), record pre-tax income, and **41.5%** growth in net income to **$59.0 million** | Income Statement (Q2) | 2025 (in thousands) | 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $195,502 | $151,120 | 29.4% | | Total Expenses | $167,237 | $97,042 | 72.3% | | Gain on sale of business | $42,950 | $0 | nm | | Income before income taxes | $74,297 | $57,903 | 28.3% | | Net income attributable to common shareholders | $58,955 | $41,664 | 41.5% | | Diluted EPS | $8.43 | $6.21 | 35.8% | [Unaudited Condensed Consolidated Balance Sheets](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets reached **$3.95 billion** as of June 30, 2025, driven by increased debt and restricted cash, with shareholders' equity growing to **$617.9 million** | Balance Sheet (in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $37,267 | $9,110 | | Restricted cash | $745,268 | $123,392 | | Equipment held for operating lease | $2,606,593 | $2,635,910 | | **Total Assets** | **$3,946,445** | **$3,297,196** | | **Liabilities & Equity** | | | | Debt obligations | $2,800,643 | $2,264,552 | | **Total Liabilities** | **$3,265,247** | **$2,684,736** | | **Total Shareholders' Equity** | **$617,937** | **$549,338** | [Corporate Information](index=3&type=section&id=Corporate%20Information) Willis Lease Finance Corporation specializes in aircraft engine leasing and services, with a conference call scheduled to discuss Q2 2025 results and forward-looking statements - The company's core business involves leasing large and regional spare commercial aircraft engines, APUs, and aircraft to a global client base of airlines, manufacturers, and MRO providers[11](index=11&type=chunk) - A conference call with executive management to discuss the Q2 2025 results was scheduled for 10:00 a.m. Eastern Time on August 5, 2025[9](index=9&type=chunk)[10](index=10&type=chunk) - The press release contains forward-looking statements and advises readers not to place undue reliance on them, highlighting various risks and uncertainties that could affect actual results, such as industry trends, economic events, and regulatory changes[12](index=12&type=chunk)