Company Overview - Willis Lease Finance Corporation (WLFC) is a leading lessor of commercial aircraft engines and a global provider of aviation services [1][4] - The company operates through various subsidiaries, including Willis Aviation Services Limited (WASL), which specializes in aircraft maintenance, repair, and overhaul (MRO) services [1][4] Expansion Plans - WASL has commenced construction of a new two-bay narrowbody hangar at Teesside International Airport, aimed at accommodating 737 and A320 family aircraft, including new-generation models [1][2] - This expansion is a response to the exceptionally high demand for aircraft heavy maintenance, with global and European MRO capacity currently falling short [2] Job Creation and Training Initiatives - The new facility is expected to create a significant number of highly-skilled jobs in the Teesside region [2] - WASL is partnering with local universities and colleges to launch training programs for new mechanics and apprentices, ensuring a sustainable talent pipeline for the aviation industry [2][3] Commitment to Community - The company has made a commitment to create several hundred jobs in Northeast England and is actively following through on this pledge [3] - WLFC's integrated services support both third-party customers and the company's owned and managed assets, contributing to growth and opportunities in local communities [3]

Core Viewpoint - Willis Lease Finance Corporation (WLFC) is set to announce its financial results for the first quarter of 2025 on May 6, 2025, and will hold a conference call to discuss these results [1][2]. Company Overview - Willis Lease Finance Corporation specializes in leasing large and regional spare commercial aircraft engines, auxiliary power units, and aircraft to various clients including airlines and aircraft engine manufacturers [4]. - The company's leasing activities are complemented by engine and aircraft trading, engine lease pools, and asset management services through Willis Asset Management Limited [4]. - Additional services include end-of-life solutions for engines and aviation materials provided by Willis Aeronautical Services, Inc., as well as maintenance and handling services through various subsidiaries [4]. Conference Call Details - The conference call will take place on May 6, 2025, at 10:00 a.m. Eastern Daylight Time, led by WLFC's executive management team [2]. - Participants can join the call by dialing specific numbers for US/Canada and international callers, and a digital replay will be available two hours after the call [2].

Core Insights - Willis Lease Finance Corporation (WLFC) announced partnerships with Johnson Matthey and Axens to advance its sustainable aviation fuel (SAF) project in Teesside, UK, targeting commercial operations by Q1 2028 with an annual production capacity of 14,000 tonnes [1][2] Company Overview - WLFC is a leading lessor of commercial aircraft engines and provides various aviation services, including engine maintenance and asset management [6] - Willis Sustainable Fuels (WSF), a subsidiary of WLFC, is focused on developing scalable solutions to decarbonize aviation [5] Project Details - The SAF project will utilize technologies from Johnson Matthey and Axens, aiming to produce 100% SAF that can be blended with conventional jet fuel, offering approximately 80% greenhouse gas emissions savings compared to current fuels [4][2] - The project has received a grant from the UK Department for Transport's Advanced Fuels Fund, aligning with the UK government's 2050 net-zero target and its goal of having five commercial-scale SAF plants under construction by 2025 [2] Technology and Collaboration - Johnson Matthey's FT CANS™ technology, developed in partnership with bp, will enable commercial-scale production of sustainable fuel [3] - Axens is committed to supporting the project with innovative solutions to drive sustainable progress in the advanced SAF market in the UK [3]

Group 1 - The article discusses Willis Lease Finance Corporation (NASDAQ: WLFC) and its stock performance, which was noted as unsatisfactory in the previous year [1] - The analysis is part of a broader investment research service focused on the aerospace, defense, and airline industries, aiming to identify investment opportunities [1] - The author emphasizes the importance of data-informed analysis in understanding the complex dynamics of the aerospace sector and its growth prospects [1] Group 2 - The investing group provides access to data analytics monitors, enhancing the ability to track industry developments and their potential impact on investment strategies [1]

Core Insights - Air India Express has entered into engine sale and leaseback agreements with Willis Lease Finance Corporation for 26 CFM56-7B engines, enhancing operational efficiency and cost savings [1][3] - The ConstantThrust® program by WLFC aims to reduce engine downtime and maintenance unpredictability, allowing airlines to focus on core operations [2][3] - The partnership between Air India and WLFC is expected to improve fleet reliability and optimize cash flows for Air India Express [3] Company Overview - Willis Lease Finance Corporation specializes in leasing commercial aircraft engines and auxiliary power units, providing integrated services including engine maintenance and asset management [4] - WLFC's service offerings include Part 145 engine maintenance, aircraft disassembly, and ground handling services, supporting a wide range of aviation needs [4]

COCONUT CREEK, Fla., March 27, 2025 (GLOBE NEWSWIRE) -- Air India Express (“AIX”), a wholly owned subsidiary of Air India, has signed definitive engine sale and leaseback agreements with Willis Lease Finance Corporation (NASDAQ: WLFC) (“WLFC” or the “Company”) for 26 CFM56-7B engines installed on 13 of its Boeing 737-800 aircraft. The engines will be covered under WLFC’s ConstantThrust® program providing enhanced reliability and significant cost savings compared to traditional MRO shop visits. This program ...

Core Viewpoint - Willis Lease Finance Corporation (WLFC) has announced a joint venture with Global Engine Maintenance (GEM) to establish Willis Global Engine Testing (WGET), aimed at addressing the shortage of engine test cell facilities in North America [1][2][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, auxiliary power units, and aircraft [4] - GEM specializes in CFM56 engine overhauls and offers a range of maintenance, repair, and overhaul services, emphasizing flexibility and rapid turnaround times [6] Joint Venture Details - The joint venture, WGET, will build an engine test cell facility in West Palm Beach, Florida, initially servicing CFM56-5B and CFM56-7B engines, with plans to accommodate newer generation engines in the future [3] - The facility aims to improve turnaround times for engine servicing, benefiting WLFC, GEM, and third-party customers [3] Market Context - There is a significant shortage of engine test cell facilities in North America, which has been hindering the efficiency of returning engines to service [2][3] - The collaboration between WLFC and GEM combines their respective expertise to enhance service offerings in the global engine MRO market [3]

Liquidity and Financial Flexibility - The company requires sufficient liquidity to meet operational obligations and maintain flexibility, with restricted cash unavailable for general corporate purposes [131]. - The company’s assets are largely pledged to creditors, which may limit financial flexibility and recovery options in adverse situations [150]. - As of December 31, 2024, the company was in compliance with financial covenants for the WEST facilities, but future compliance is uncertain [160]. - The company has $914.9 million of outstanding variable rate debt, with an estimated $4.9 million increase in annual interest expense for every 1% rise in interest rates [244]. Revenue and Market Risks - Approximately 69% of the company's lease rent revenue for the year ended December 31, 2024, was generated from foreign customers, exposing it to international regulatory risks [134]. - 69% of total lease rent revenues in 2024 came from non-U.S. domiciled lessees, which poses currency devaluation risk [246]. - The company faces risks related to geopolitical and economic conditions in the Asia-Pacific and European regions, which could affect lessees' ability to meet obligations [138]. - The company is subject to intense competition from larger firms with greater resources, which could adversely affect revenues and market position [146][148]. Operational and Expansion Risks - Future acquisitions or expansions may involve additional debt and operational risks, impacting financial stability [152]. - The company may struggle to manage operational expansion effectively, which could adversely affect financial results and cash flows [151]. - Management's focus may be diverted due to potential acquisitions, leading to risks such as unanticipated costs and loss of key employees [161]. Cost and Pricing Pressures - Inflationary pressures have increased costs of labor and goods, potentially reducing profit margins if price increases do not keep pace with inflation [132]. - Substantially all leases require payments in U.S. dollars, which may pose risks if foreign currencies devalue against the dollar, affecting lessees' ability to pay [136]. - The company’s lease rates may be adjusted based on market rates, affecting operating margins due to interest costs [244]. Governance and Control - The company has a significant concentration of ownership, with one principal stockholder controlling approximately 42% of the common stock, potentially impacting decision-making and stock price [156]. - The company’s amended charter requires an 80% super majority vote for certain acquisitions, complicating potential changes in control [163]. - The rights agreement with Development Bank of Japan Inc. could discourage mergers or proxy contests [163]. Servicing and Administrative Risks - The company receives monthly fees of 11.5% as servicer and 2.0% as administrative agent for the WEST facilities, with 8.0% for WWFL engines [159]. - The company may face increased expenses if removed as servicer or administrative agent, impacting financial condition and cash flows [160]. - Hedging activities are employed to protect against interest rate fluctuations, but may limit benefits from decreasing rates [245].

Willis Lease Finance (WLFC) Q4 2024 Earnings Call March 10, 2025 05:32 PM ET Company Participants Austin Willis - CEOScott Flaherty - Executive VP & CFOEric Gregg - Founder and PrincipalWilliam Waller - Portfolio Manager Conference Call Participants Louis Raffetto - Research AnalystNone - AnalystSergey Glinyanov - Investment Research Analyst Austin Willis you. Willis has historically been a company of industry first. In the early 1980s, Charlie Willis created the first independent engine leasing platform. I ...

Financial Data and Key Metrics Changes - In Q4 2024, total revenues reached $152.8 million, with pre-tax income of $30.4 million, marking a 44.8% increase from $21 million in Q4 2023 [8][22] - For the full year 2024, total revenues were $569.2 million, with pre-tax income of $152.6 million, representing a 127% increase from the previous year [8][21] - The company achieved a return on equity of 21% for 2024, the highest since going public [8] Business Line Data and Key Metrics Changes - Core lease rent revenues for 2024 were $238.2 million, with interest revenues of $11.7 million, reflecting growth due to an increased portfolio size of $2.87 billion [23] - Maintenance reserve revenues increased by 60% to $213.9 million, driven by both long-term and short-term maintenance reserves [25] - Spare parts and equipment sales rose by 33% to $27.1 million, indicating a strong market for residual values [26] Market Data and Key Metrics Changes - The company noted a strong engine market, with increasing values for both whole engines and parts, although originating transactions have become more challenging due to high asset values [45][46] - The disparity between the fair market value and book value of the engine portfolio has increased to approximately $600 million, highlighting the appreciation of engine assets over time [30][80] Company Strategy and Development Direction - The company continues to innovate, having established several industry firsts, including the first engine warehouse financing and the first aviation ABS to reopen the market [6][9] - The business model focuses on a flywheel approach, enhancing value creation and providing greater investment opportunities compared to competitors [11] - The company is strategically increasing its portfolio of future technology assets, which rose from 46% to 53% by the end of 2024 [100] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing strength of the core leasing business and the ability to generate premium returns [8][19] - The company anticipates continued demand for its constant thrust product as airlines transition to newer aircraft models [18] - Management acknowledged the challenges in the market but emphasized a robust pipeline of opportunities for originating transactions [47] Other Important Information - The company returned capital to shareholders through dividends, including a special dividend of $1 per share and regular quarterly dividends of $0.25 per share [37] - Total debt obligations increased from $1.8 billion to $2.3 billion, with a slight increase in leverage to 3.48 times [34][38] Q&A Session Summary Question: Update on the engine market and values - Management noted a strong engine market with some scarcity, but they have been successful in originating transactions [45][46] Question: Availability of test cell for engine work - The company does not currently have a test cell and availability varies [51] Question: Discounts on new engine purchases - Management confirmed successful purchasing of new engines but did not disclose specific discounts [56][57] Question: Earnings from joint ventures - Management indicated that JV earnings have been stable and will benefit from scale over time [70] Question: Fair market value vs. book value of engine portfolio - The disparity has increased to approximately $600 million, reflecting the appreciation of engine assets [80] Question: Proportion of short-term vs. long-term maintenance reserve revenue - Management expects the trend of increased short-term maintenance reserves to continue [88] Question: Long-term lease extensions - The company is experiencing higher than average extension rates but uses this as an opportunity to reprice [96]