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]

Core Insights - Willis Lease Finance Corporation (WLFC) has entered into an agreement to sell its consultancy and advisory arm, Bridgend Asset Management Limited, to its joint venture partner Mitsui, through Willis Mitsui & Co. Engine Support Limited (WMES) [1][2] - This strategic move aims to enhance collaboration and expand WMES's capabilities in aviation services, focusing on increasing service offerings and aviation asset portfolio [1][2] - The transaction is expected to unlock fresh capital for WLFC, which can be reinvested to accelerate portfolio growth, providing a premium return on equity [3] Company Overview - WLFC is a leading lessor of commercial aircraft engines and provides various aviation services, including engine maintenance, aircraft leasing, and asset management [4] - WMES, established in 2011 and headquartered in Dublin, currently manages assets worth approximately $360 million, and the integration of WLFC's services will enhance its operational efficiencies [2][4] - The partnership with Mitsui is expected to strengthen long-term relationships and drive growth in the commercial aviation sector [4]

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

Financial Data and Key Metrics Changes - For Q1 2025, total revenue was $157.7 million, a 33% increase from the same quarter in 2024, with pretax income of $25.3 million [11][12] - Average utilization for the quarter was 79.9%, ending at over 86%, indicating effective revenue generation from off-lease engine purchases [3][12] - The total owned portfolio size increased to $2.82 billion as of March 31, 2025 [12] - Maintenance reserve revenues rose to $54.9 million, up 25% from the prior year [12][14] - Net income attributable to common shareholders was $15.5 million, with diluted earnings per share at $2.21 [20] Business Line Data and Key Metrics Changes - Core lease rent revenue for the quarter was $67.7 million, with interest revenue at $3.9 million [11][12] - Fair parts and equipment sales surged by 455% to $18.2 million, driven by demand for surplus materials [15] - Maintenance service revenue was $5.6 million, showing slight growth from the previous year [16] Market Data and Key Metrics Changes - The company noted robust demand for its products and services both domestically and internationally, despite macroeconomic uncertainties [9] - The average lease rate factor across the portfolio remained stable at 1.0% [12] Company Strategy and Development Direction - The company is focused on expanding its core leasing business and enhancing maintenance capabilities to support airlines [4][5] - Notable transactions included purchasing 30 additional LEAP engines and a new constant thrust deal with Air India Express [5][6] - A joint venture to build an engine test facility in Florida was announced to address industry testing capacity shortages [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model and ability to create value despite macroeconomic challenges [4][9] - The company is prepared to adapt to potential changes in the operating environment due to tariffs and market volatility [9][10] Other Important Information - The company declared its fourth consecutive quarterly dividend of $0.25 per share, reflecting strong cash flow characteristics [23] - Total debt obligations increased from $1.7 billion to $2.2 billion, with leverage decreasing to 3.31 times [19][23] Q&A Session Summary Question: Impact of tariffs on operations - Management indicated minimal impact from tariffs on both import parts and leasing revenue, with most parts sourced internally [25][26] Question: Market values and lease rates under potential tariff escalation - Management speculated that asset inflation could occur, with older assets potentially appreciating due to increased costs of new engines [28][30] Question: Spare parts market dynamics - The company noted a strong demand for used serviceable materials, with a strategic approach to either repair or part out unserviceable engines [37][39] Question: Clarification on maintenance reserve liabilities - Management confirmed that the increase in maintenance reserve liabilities reflects probable lease extensions and will be recognized as revenue once engines are returned [52][55] Question: Utilization rate and lease mix - The utilization rate improved significantly, with a consistent mix of long-term and short-term leases maintained around 50% [59][60]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported total revenue of $157.7 million, a 33% increase from the same quarter in 2024, with pretax income of $25.3 million [3][12] - Average utilization for the quarter was 79.9%, ending at over 86%, indicating effective revenue generation from off-lease engine purchases [3][12] - The total owned portfolio size increased to $2.82 billion as of March 31, 2025, with portfolio utilization rising from 76.7% at year-end 2024 to 86.4% [12][13] - Maintenance reserve revenues increased by 25% to $54.9 million compared to the prior year [12][14] - Net income attributable to common shareholders was $15.5 million, with diluted earnings per share at $2.21 [21] Business Line Data and Key Metrics Changes - Core lease rent revenue for the quarter was $67.7 million, with interest revenue at $3.9 million [12][13] - Fair parts and equipment sales surged by 455% to $18.2 million, driven by demand for surplus materials [12][15] - Maintenance service revenue was $5.6 million, showing slight growth from the previous year [12][18] Market Data and Key Metrics Changes - The company noted robust demand for its products and services both domestically and internationally, despite macroeconomic uncertainties [10] - The company is prepared for potential changes due to market volatility, particularly concerning tariffs [10] Company Strategy and Development Direction - The company announced three notable transactions aimed at enhancing its service offerings: purchasing 30 additional LEAP engines, a new constant thrust deal with Air India Express, and a joint venture to build an engine test facility in Florida [5][6][9] - The strategy focuses on providing efficient solutions to airlines and maintaining a portfolio of in-demand assets [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model and the ability to lead in value creation despite macroeconomic concerns [4][10] - The company is well-structured to manage potential tariff impacts and has a deep understanding of customer needs [10][76] Other Important Information - The company paid its fourth consecutive quarterly dividend of $0.25 per share [4][23] - Total debt obligations increased from $1.7 billion to $2.2 billion year-over-year, with leverage decreasing to 3.31 times [20][23] Q&A Session Summary Question: Impact of tariffs on operations - Management indicated minimal impact from tariffs on both import parts and leasing revenue, with most parts sourced internally [25][26][27] Question: Market values and lease rates under potential tariff escalation - Management speculated that asset inflation could occur, with older assets potentially appreciating due to increased costs of new engines [29][32][33] Question: Trends in the used serviceable market - Management noted a strong demand for used serviceable materials and discussed the decision-making process for repairing versus tearing down engines [38][39][40] Question: Clarification on spare parts and equipment sales - Management clarified that equipment sales refer to trading activities, distinct from leased assets [41][44] Question: Utilization rate and GTF engines - Management confirmed that the increase in utilization was influenced by the leasing of GTF engines acquired late in Q4 2024 [46][48] Question: Long-term maintenance revenues and liabilities - Management explained that maintenance reserve liabilities represent future revenue from long-term leases, which will be recognized upon engine returns [54][56] Question: Employee growth relative to asset base - Management attributed the increase in headcount to the expansion of service businesses, particularly in engine MRO operations [72][74]

Core Insights - Willis Lease Finance Corporation (WLFC) reported a strong financial performance for the first quarter of 2025, with total revenue reaching $157.7 million, a 32.5% increase compared to $119.1 million in the same period of 2024 [4][10] - The company declared a quarterly dividend of $0.25 per share, payable on May 22, 2025, to shareholders of record as of May 12, 2025 [2] Financial Performance - Core lease rent and maintenance reserve revenues totaled $122.6 million, up 27% from $96.8 million in the first quarter of 2024, driven by strong demand in the aviation marketplace [4][10] - Pre-tax income for the quarter was $25.3 million, reflecting a decrease of 15.5% from $29.9 million in the first quarter of 2024 [10][17] - Maintenance reserve revenue increased to $54.9 million, a 25% rise from $43.9 million in the previous year [6][10] - Spare parts and equipment sales surged to $18.2 million, compared to $3.3 million in the first quarter of 2024, marking a 454.7% increase [8][10] Operational Highlights - The company's portfolio utilization improved to 86.4% at the end of the quarter, up from 76.7% at the end of 2024 [10] - The lease portfolio was valued at $2,819.5 million as of March 31, 2025, a slight decrease from $2,872.3 million at the end of 2024 [12] - General and administrative expenses rose significantly, influenced by an $11.4 million increase in consultant-related fees for the sustainable aviation fuel project [10][11] Balance Sheet Overview - As of March 31, 2025, total assets were reported at $3,274.6 million, a slight decrease from $3,297.2 million at the end of 2024 [19] - Total liabilities amounted to $2,645.9 million, down from $2,684.7 million at the end of 2024 [19] - Cash and cash equivalents increased to $32.4 million from $9.1 million at the end of 2024 [19]

Revenue Performance - Total revenue for Q1 2025 reached $157.7 million, an increase of 32.5% compared to $119.1 million in Q1 2024[3] - Core lease rent and maintenance reserve revenues totaled $122.6 million, up 27% from $96.8 million in the same period last year[3] - Maintenance reserve revenue increased to $54.9 million, a rise of 25% compared to $43.9 million in Q1 2024[5] - Spare parts and equipment sales surged to $18.2 million, a significant increase of 454.7% from $3.3 million in Q1 2024[9] Income and Expenses - Pre-tax income for Q1 2025 was $25.3 million, reflecting a decrease of 15.5% from $29.9 million in Q1 2024[17] - General and administrative expenses rose by 61.3% to $47.7 million, largely due to consultant fees related to the sustainable aviation fuel project[11] Asset and Portfolio Management - The book value of lease assets was $3,219.9 million as of March 31, 2025[12] - The lease portfolio as of March 31, 2025, was valued at $2,819.5 million, a decrease from $2,872.3 million at the end of 2024[13] - Portfolio utilization improved to 86.4% at the end of Q1 2025, compared to 76.7% at the end of 2024[7] Dividends - The company declared a quarterly dividend of $0.25 per share, payable on May 22, 2025[2]

Core Insights - Willis Lease Finance Corporation (WLFC) has successfully closed three Japanese operating lease with call option (JOLCO) transactions, totaling US$64.8 million in financing, enhancing its position in the aviation leasing market [1][2] - The total JOLCO financings by WLFC now amount to approximately US$119.8 million, indicating a growing trend in diversifying financing options [1][2] Company Overview - WLFC specializes in leasing large and regional spare commercial aircraft engines, auxiliary power units, and aircraft to various stakeholders in the aviation industry, including airlines and maintenance providers [3] - The company integrates its leasing activities with engine and aircraft trading, engine lease pools, and asset management services, alongside offering end-of-life solutions for engines and aviation materials [3] Market Position - The JOLCO market is viewed as an attractive avenue for diversifying financing options, which allows WLFC to provide compelling lease and financing solutions to airline customers [2]

Core Insights - Willis Lease Finance Corporation's subsidiary, Willis Aviation Services Limited, has begun construction of a new two-bay narrowbody hangar at Teesside International Airport to enhance its aircraft maintenance capabilities [1][2] - The expansion aims to address the high demand for aircraft heavy maintenance, which is currently exceeding capacity in the global and European markets [2] - The new facility is expected to create several hundred highly-skilled jobs in Northeast England and will include training programs in partnership with local educational institutions [2][3] Company Overview - Willis Lease Finance Corporation specializes in leasing commercial aircraft engines and providing aviation services globally, including maintenance, repair, and overhaul [4] - The company integrates its leasing activities with engine and aircraft trading, asset management, and end-of-life solutions for aviation materials [4] - Willis Sustainable Fuels is focused on developing projects aimed at decarbonizing the aviation sector [4]