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]

Financial Performance - The company reported record total revenues of $569.2 million for the year ended December 31, 2024, a 36.0% increase from $418.6 million in 2023[1] - Pre-tax income reached $152.6 million in 2024, up 127.4% compared to $67.1 million in 2023[2] - Core lease rent and maintenance reserve revenues were at an all-time high of $452.1 million, reflecting a 30.4% increase from $346.8 million in 2023[1] - Lease rent revenue increased by $25.1 million, or 11.8%, to a record $238.2 million in 2024[2] - Maintenance reserve revenue was $213.9 million, a 60.0% increase from $133.7 million in 2023[2] - Diluted weighted average income per common share was $15.34 for 2024, compared to $6.23 in 2023[2] - Spare parts and equipment sales increased to $27.1 million in 2024, reflecting a 33.1% increase from $20.4 million in 2023[2] Asset and Liquidity Management - The book value of lease assets increased to $2,872.3 million as of December 31, 2024, compared to $2,223.4 million as of December 31, 2023[3] - The company refinanced and expanded its credit facility to $1.0 billion in October 2024, enhancing liquidity for growth[2] Dividends - The company declared and paid a recurring quarterly dividend of $0.25 per share in February 2025, marking its third consecutive dividend[2]

Core Insights - Willis Lease Finance Corporation (WLFC) reported record annual total revenues of $569.2 million and pre-tax income of $152.6 million for the year ended December 31, 2024, marking a significant increase from the previous year [1][3] - The growth in revenues was primarily driven by core lease rent and maintenance reserve revenues, which reached an all-time high of $452.1 million, up 30.4% from $346.8 million in 2023 [1][3] Financial Performance - Pre-tax income increased by 127.4% to $152.6 million in 2024, compared to $67.1 million in 2023 [3][9] - Lease rent revenue rose by 11.8% to $238.2 million in 2024, up from $213.1 million in 2023 [3][7] - Maintenance reserve revenue reached $213.9 million, a 60.0% increase from $133.7 million in 2023, reflecting the growth in the lease portfolio [3][7] - Spare parts and equipment sales increased to $27.1 million in 2024, compared to $20.4 million in 2023, driven by demand for surplus materials [3][7] Asset and Equity Growth - The company's lease portfolio value increased to $2,872.3 million as of December 31, 2024, up from $2,223.4 million in 2023 [3][4] - The book value of lease assets, including joint ventures, rose to $3,238.4 million as of December 31, 2024, compared to $2,495.4 million in 2023 [3][4] - Diluted weighted average income per common share was $15.34 for 2024, compared to $6.23 in 2023 [3][9] - The company declared and paid a recurring quarterly dividend of $0.25 per share in November 2024 and February 2025 [3][10] Strategic Initiatives - The company leveraged strong earnings to reinvest nearly $1 billion in high-demand engines and aircraft, reflecting its ability to maximize asset value [2] - In October 2024, WLFC refinanced and expanded its credit facility from $500 million to a new five-year, $1.0 billion facility, enhancing liquidity for continued growth [3][10]

Core Insights - Willis Lease Finance Corporation (WLFC) has exercised purchase rights for 30 new LEAP engines from CFM International, enhancing its portfolio and support capabilities for operators of Airbus A320neo and Boeing 737 MAX aircraft [1][2] Company Overview - WLFC is a leading lessor of commercial aircraft engines and provides global aviation service operations, including leasing large and regional spare commercial aircraft engines, auxiliary power units, and aircraft to various aviation stakeholders [3] - The company integrates its leasing activities with engine and aircraft trading, engine lease pools, and asset management services, along with end-of-life solutions for engines and aviation materials [3] Strategic Importance - The acquisition of the LEAP engines is positioned as a significant milestone that aligns with the company's vision to support sustainable flight through advanced and efficient aviation solutions [2]

Core Points - Willis Lease Finance Corporation (WLFC) plans to announce its financial results for Q4 and full year 2024 on March 10, 2025 [1] - A conference call will be held on the same day at 10:00 a.m. EST to discuss these results [2] - A digital replay of the conference call will be available two hours after its completion [2] Company Overview - WLFC leases large and regional spare commercial aircraft engines, auxiliary power units, and aircraft to various clients including airlines and maintenance providers globally [4] - The company's leasing activities are complemented by engine and aircraft trading, engine lease pools, and asset management services [4] - WLFC also offers end-of-life solutions for engines and aviation materials through its subsidiary, Willis Aeronautical Services, Inc. [4] - Service offerings include Part 145 engine maintenance, aircraft line and base maintenance, and various ground handling services [4]

Company Overview - Willis Lease Finance Corporation (WLFC) specializes in leasing large and regional spare commercial aircraft engines, auxiliary power units, and aircraft to airlines, engine manufacturers, and maintenance providers globally [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] - WLFC also offers various end-of-life solutions for engines and aviation materials via Willis Aeronautical Services, Inc. [4] - 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 [4] Financial Results Announcement - WLFC plans to announce its financial results for the fourth quarter and full year 2024 on March 10, 2025 [1] - A conference call will be held on the same day at 10:00 a.m. Eastern Standard Time to discuss these results [2] - Participants can join the call by dialing US and Canada (877) 612-6725 or International +1 (646) 828-8082, using Conference ID 808553 [2] - A digital replay of the conference call will be available two hours after its completion on the company's website [2][3]

Core Insights - Willis Lease Finance Corporation (WLFC) has entered into a long-term General Terms Agreement with TUI Airways to provide base maintenance for TUI's narrowbody aircraft, starting with two Boeing 737NG maintenance checks [1][2] - The maintenance services will be conducted at WLFC's expanding facility at Teesside International Airport in Northeastern England, highlighting the company's commitment to supporting TUI's fleet and contributing to local economic growth [1][2] Company Overview - WLFC is a leading lessor of commercial aircraft engines and provides a range of aviation services, including leasing large and regional spare commercial aircraft engines, auxiliary power units, and aircraft to various clients [3] - The company's service offerings include Part 145 engine maintenance, aircraft line and base maintenance, disassembly, parking and storage, as well as ground and cargo handling services [3]

Company Overview - Willis Lease Finance Corporation (WLFC) declared a quarterly dividend of $0.25 per share, marking its third consecutive regular quarterly dividend since June 2024, indicating the strength of its business model [1][2] - The company 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 [2] Financial Information - The dividend is scheduled to be paid on February 21, 2025, to stockholders of record as of February 12, 2025 [1] - The company's leasing activities are complemented by engine and aircraft trading, asset management services, and end-of-life solutions for aviation materials [2] Services Offered - WLFC provides a range of services including Part 145 engine maintenance, aircraft line and base maintenance, aircraft disassembly, parking and storage, as well as airport ground and cargo handling services [2]

Company Announcement - Willis Lease Finance Corporation's subsidiary, Willis Aviation Services Limited (WASL), has entered into a long-term General Terms Agreement (GTA) and volume commitment with Jet2com to perform C Checks on Jet2's B737NG aircraft [1] - The agreement highlights the company's commitment to delivering premier MRO solutions while supporting Jet2's fleet, fostering local economic growth, and creating skilled jobs in the UK aerospace industry [3] Strategic Collaboration - WASL will deliver heavy base maintenance services at its state-of-the-art facility at Teesside International Airport in Northeastern England [2] - The collaboration underscores Jet2's commitment to ensuring the highest standards of safety, reliability, and superior performance across its aircraft operations [2] Company Overview - Willis Lease Finance Corporation leases large and regional spare commercial aircraft engines, auxiliary power units, and aircraft to airlines, aircraft engine manufacturers, and MRO providers worldwide [4] - 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 [4] Leadership Statements - Austin C Willis, WLFC's Chief Executive Officer, expressed excitement about partnering with Jet2com, a respected airline known for its customer focus and operational excellence [3] - Chris Hubbard, Director of Engineering & Maintenance at Jet2com, emphasized the importance of safety and reliability, expressing confidence in WASL's proven capability and commitment to quality [3]

Core Insights - Willis Lease Finance Corporation has entered into a transaction with Pratt & Whitney to purchase nine new PW1133G-JM aircraft engines, valued at approximately $200 million, with all purchases expected to be completed by December 31, 2024 [1] - The PW1133G-JM engines offer up to 20% better fuel efficiency compared to previous generation engines and are certified for operation on 50% sustainable aviation fuel (SAF), having been successfully tested on 100% SAF [1] - This transaction is part of the company's strategy to provide modern and in-demand engines to airlines, enhancing their operational capabilities [2] Company Overview - Willis Lease Finance Corporation 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 [4] - The company integrates its leasing activities with engine and aircraft trading, engine lease pools, and asset management services, along with end-of-life solutions for engines and aviation materials [4] - Service offerings include Part 145 engine maintenance, aircraft line and base maintenance, disassembly, parking and storage, and ground handling services [4]