Willis Lease(US:WLFC)2025-08-05 18:59Revenue Growth - Lease rent revenue increased by $16.4 million, or 29.4%, to $72.3 million for the three months ended June 30, 2025, compared to $55.9 million for the same period in 2024[119] - Total revenue for the three months ended June 30, 2025, was $195.5 million, a 29.4% increase from $151.1 million in the same period of 2024[119] - Spare parts and equipment sales surged by $24.2 million, or 390.7%, to $30.4 million for the three months ended June 30, 2025, compared to $6.2 million for the same period in 2024[123] - Interest revenue rose by $1.4 million, or 59.8%, to $3.6 million for the three months ended June 30, 2025, from $2.3 million for the same period in 2024[124] - Gain on sale of leased equipment was $27.6 million for the three months ended June 30, 2025, compared to $14.4 million for the same period in 2024[125] - Total revenue for the six months ended June 30, 2025, was $353.2 million, a 30.7% increase from $270.2 million in the same period of 2024[137] - Lease rent revenue increased by $31.3 million, or 28.7%, to $140.0 million for the six months ended June 30, 2025, compared to $108.7 million for the same period in 2024[137] - Spare parts and equipment sales surged by $39.1 million, or 412.9%, to $48.6 million for the six months ended June 30, 2025, compared to $9.5 million in the prior year[141] - Interest revenue rose by $3.0 million, or 66.5%, to $7.6 million for the six months ended June 30, 2025, compared to $4.6 million for the same period in 2024[142] - The company reported a net gain of $32.0 million from the sale of leased equipment during the six months ended June 30, 2025, compared to a net gain of $23.6 million in the prior year[143] Expenses and Costs - Maintenance reserve revenue decreased by $12.2 million, or 19.3%, to $50.7 million for the three months ended June 30, 2025, from $62.9 million for the same period in 2024[122] - General and administrative expenses increased by $15.7 million, or 45.4%, to $50.4 million for the three months ended June 30, 2025, compared to $34.7 million for the same period in 2024[132] - Net finance costs increased by $9.0 million, or 36.7%, to $33.6 million for the three months ended June 30, 2025, compared to $24.6 million for the same period in 2024[134] - General and administrative expenses increased by $33.9 million, or 52.7%, to $98.1 million for the six months ended June 30, 2025, compared to $64.3 million for the same period in 2024[151] - Net finance costs increased by $18.1 million, or 38.0%, to $65.7 million for the six months ended June 30, 2025, compared to $47.6 million in the prior year[153] Cash Flow and Investments - Cash flows from operating activities increased by $15.5 million, or 12.0%, to $145.2 million for the six months ended June 30, 2025, compared to $129.7 million in 2024[159] - Cash flows used in investing activities were $2.2 million for the six months ended June 30, 2025, compared to $275.0 million for the same period in 2024, reflecting a significant decrease in investment spending[160][161] - Cash flows provided by financing activities increased to $507.1 million for the six months ended June 30, 2025, up from $125.2 million in 2024, primarily due to higher proceeds from debt obligations[161] Debt and Financial Compliance - As of June 30, 2025, total debt obligations were $2,800.6 million, with interest rates ranging from approximately 3.1% to 8.0%[165] - The company was in compliance with financial covenants, including an Interest Coverage Ratio of at least 2.25 to 1.00 and a Total Leverage Ratio not greater than 4.25 to 1.00 as of June 30, 2025[167] - Interest payments under debt obligations are estimated at $542.0 million, with $134.6 million due within one year[169] Market Position and Future Commitments - The company has committed to purchasing 30 new LEAP-1A engines and 21 new LEAP-1B engines for a total of $912.6 million by 2030, indicating ongoing market expansion efforts[169] - Approximately 71% of lease rent revenues for the six months ended June 30, 2025, came from non-U.S. domiciled lessees, highlighting exposure to currency devaluation risk[176] - A 1% change in interest rates on variable rate debt could result in a $3.9 million increase or decrease in annual interest expense, indicating sensitivity to market interest rate fluctuations[174] Dividends - The company paid cash dividends of $3.7 million to common stock shareholders during the six months ended June 30, 2025, a decrease from $7.1 million in the same period of 2024[162] - Total preferred stock dividends amounted to $3.0 million for both the six months ended June 30, 2025, and 2024, reflecting stable dividend payments despite changes in preferred stock agreements[164]