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COCONUT CREEK, Fla., Aug. 04, 2026 (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, today announced its financial results for the second quarter ended June 30, 2026.
Second Quarter 2026 Highlights (All metrics compared to second quarter 2025, except where noted)
Income from operations of $34.0 million, an increase of 20.2%Quarterly lease rent revenue of $77.1 million, an increase of 6.7%Quarterly core lease rent and maintenance reserve revenues were $123.6 million in the aggregate, up 0.5%Gain on sale of leased equipment of $32.0 million, an increase of 16.2%Net income attributable to common shareholders of $28.7 millionAdjusted EBITDA of $120.7 million, an increase of 4.0%Grew assets under management, including on our balance sheet and Willis Aviation Capital businesses, to $4.4 billion
“The first half of the year was focused on establishing and building Willis Aviation Capital,” said Austin C. Willis, Chief Executive Officer of WLFC, “with total AUM growth of 21% year over year, we have delivered.”
Second Quarter 2026 Operating Results
Lease rent revenue increased by $4.9 million, or 6.7%, to $77.1 million in the three months ended June 30, 2026 from $72.3 million for the three months ended June 30, 2025. The increase is due to an increase in the average size of the portfolio as compared to that of the prior year period.
During the second quarter of 2026, the Company recognized $7.5 million of long-term maintenance revenue, compared to $0.5 million for the quarter ended June 30, 2025. Long-term maintenance is recognized at the end of a lease period as the related maintenance reserve liability is released from the balance sheet.
For the quarter ended June 30, 2026, the gain on sale of leased equipment was $32.0 million, reflecting the sale of 21 engines and other parts and equipment from the lease portfolio. During the three months ended June 30, 2025, the Company sold 14 engines, two airframes, and other parts and equipment for a net gain of $27.6 million.
In March 2026, the Company’s investment fund partnership with Liberty Mutual Investments commenced operations, followed by the commencement of the Company’s investment fund partnership with Blackstone Credit & Insurance in April 2026.
The book value of lease assets owned either directly or through WLFC’s joint ventures, inclusive of the Company’s equipment held for operating lease, maintenance rights, notes receivable, and investments in sales-type leases was $3,721.6 million as of June 30, 2026.
The value of our assets under management, inclusive of the book value of WLFC’s on-balance sheet assets as well as leased assets in our joint ventures, third-party managed assets, and managed fund portfolios was $4.4 billion as of June 30, 2026.
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA
We analyze our financial data to evaluate the health of our business and assess our performance. As appropriate, in addition to income or loss from operations under GAAP, we use Adjusted EBITDA, a non-GAAP financial measure, to evaluate our business. We believe that this non-GAAP financial measure provides meaningful supplemental information regarding our performance as it excludes certain items that may not be indicative of our recurring operating results. We also believe that investors, in addition to management, benefit from referring to this non-GAAP financial measure in assessing our performance, when viewed together with our GAAP results. While items excluded from Adjusted EBITDA may be recurring in nature and should not be disregarded in evaluating performance, it can be useful to exclude such items as they can vary significantly between periods and or not be indicative of current or future operating results.
Because non-GAAP financial measures are not standardized, our calculation of Adjusted EBITDA may differ from similarly titled non-GAAP measures, if any, reported by other companies. This non-GAAP financial measure should not be considered in insolation from, or as a substitute for, financial information performed in accordance with GAAP.
We define Adjusted EBITDA as net income attributable to common shareholders, excluding (i) income tax expense, (ii) interest expense, (iii) preferred stock dividends/costs, (iv) loss on debt extinguishment, (v) depreciation and amortization expense, (vi) stock compensation expense, (vii) write-down of equipment, (viii) acquisition, financing and divestitures related expenses, and (ix) other items not indicative of our ongoing operating performance.
Adjusted EBITDA was approximately $120.7 million and $116.1 million for the three months ended June 30, 2026 and 2025, respectively, and $244.6 million and $219.4 million for the six months ended June 30, 2026 and 2025, respectively. See below for the reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, net income attributable to common shareholders.
Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 (in thousands)Net income attributable to common shareholders$28,745 $58,955 $52,406 $74,431 Add: Income tax expense 7,828 13,920 19,583 22,305 Add: Interest expense 29,689 33,569 62,322 65,663 Add: Preferred stock dividends/costs 1,423 1,422 2,845 2,815 Add: Loss on debt extinguishment 5,421 — 12,448 — Add: Depreciation and amortization expense 29,068 27,550 59,246 52,574 Add: Stock compensation expense 12,703 16,751 26,455 23,658 Add: Write-down of equipment 4,910 11,458 6,059 13,567 Add: Acquisition, financing and divestitures related expenses 2,560 662 4,802 828 Less: Other (1) (1,610) (48,226) (1,581) (36,449)Adjusted EBITDA$120,737 $116,061 $244,585 $219,392 ________________________________________________________
During the three and six months ended June 30, 2026, the Company recognized non-recurring project expenses of $(1.6) million and $(1.6) million, respectively, related to its sustainable aviation fuel project. The negative expense recognized during the three-month and six-month periods reflect government grant proceeds recognized in the second quarter of 2026. During the three and six months ended June 30, 2025, the Company recognized non-recurring project expenses of $(5.3) million and $6.5 million, respectively, related to its sustainable aviation fuel project, for which the Company subsequently decided to cease further investment. The negative expense recognized during the three-month period reflects government grant proceeds received in the second quarter of 2025. Additionally, during the three and six months ended June 30, 2025, the Company recognized $43.0 million in relation to the gain on sale of the BAML business.
Balance Sheet
As of June 30, 2026, the Company’s lease portfolio was $2,956.3 million, consisting of $2,783.4 million of equipment held in its operating lease portfolio, $89.3 million of notes receivable, and $83.6 million of maintenance rights, which represented 334 engines, 22 aircraft, one marine vessel, and other leased parts and equipment. As of December 31, 2025, the Company’s lease portfolio was $2,988.9 million, consisting of $2,801.7 million of equipment held in its operating lease portfolio, $139.9 million of notes receivable, $30.6 million of maintenance rights, and $16.6 million of investments in sales-type leases, which represented 363 engines, 20 aircraft, one marine vessel, and other leased parts and equipment.
Conference Call
WLFC will hold a conference call led by the executive management team today at 10:00 a.m. Eastern Time to discuss its second quarter 2026 results.
To participate in the conference call, please use the following dial-in numbers:
U.S. and Canada: +1 (800) 330-6730
International: +1 786 297 8585
Conference ID: 7661930
Participant Passcode: 442978
The conference call may also be accessed by registering via the following link:
https://event.webcasts.com/starthere.jsp?ei=1759374&tp_key=c0ab3b632b.
A digital replay will be available two hours after the completion of the conference call. To access the replay, please visit the Investor Relations sections of our website at https://www.wlfc.global/investor-center.
About Willis Lease Finance Corporation
Willis Lease Finance Corporation (WLFC) leases large and regional spare commercial aircraft engines and aircraft to airlines, aircraft engine manufacturers and maintenance, repair and overhaul providers worldwide. These leasing activities are integrated with engine and aircraft trading, engine lease pools and asset management services, as well as various end-of-life solutions for engines and aviation materials provided through Willis Aeronautical Services, Inc. Additionally, through Willis Engine Repair Center®, Jet Centre by Willis, and Willis Aviation Services Limited, 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.
Forward-Looking Statements
Except for historical information, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. By their nature, forward-looking statements involve a number of inherent risks, uncertainties and assumptions and are subject to change in circumstances that are difficult to predict and many of which are outside of our control. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law. Our actual results may differ materially from the results discussed, either expressly or implicitly, in forward-looking statements. Factors that might cause such a difference include, but are not limited to: the effects on the airline industry and the global economy of events such as war, terrorist activity and natural disasters; changes in oil prices, rising inflation and other disruptions to world markets; trends in the airline industry and our ability to capitalize on those trends, including growth rates of markets and other economic factors, as well as the impact of new or increased tariffs; risks associated with owning and leasing jet engines and aircraft; our ability to successfully negotiate equipment purchases, sales and leases, to collect outstanding amounts due and to control costs and expenses; changes in interest rates and availability of capital, both to us and our customers; our ability to continue to meet changing customer demands; regulatory changes affecting airline operations, aircraft maintenance, accounting standards and taxes; the market value of engines and other assets in our portfolio; and risks detailed in the Company’s Annual Report on Form 10-K and other continuing and current reports filed with the Securities and Exchange Commission. It is advisable, however, to consult any further disclosures the Company makes on related subjects in such filings. These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.
Unaudited Condensed Consolidated Statements of Income
(In thousands, except per share data)
Three months ended
June 30, Six months ended
June 30, 2026 2025 % Change 2026 2025 % ChangeREVENUE Lease rent revenue$77,137 $72,268 6.7% $154,522 $140,007 10.4%Maintenance reserve revenue 46,456 50,743 (8.4)% 101,968 105,602 (3.4)%Spare parts and equipment sales 21,180 30,354 (30.2)% 42,867 48,594 (11.8)%Interest revenue 1,183 3,649 (67.6)% 3,971 7,583 (47.6)%Gain on sale of leased equipment 32,038 27,582 16.2% 49,997 32,019 56.1%Gain on sale of financial assets 154 — nm 592 378 56.6%Maintenance services revenue 8,983 8,031 11.9% 18,752 13,617 37.7%Management and advisory fees 5,524 2,588 113.4% 13,419 4,551 194.9%Other revenue 1,362 287 374.6% 2,275 883 157.6%Total revenue 194,017 195,502 (0.8)% 388,363 353,234 9.9% EXPENSES Depreciation and amortization expense 29,068 27,550 5.5% 59,246 52,574 12.7%Cost of spare parts and equipment sales 15,097 28,102 (46.3)% 29,514 43,425 (32.0)%Cost of maintenance services 10,350 8,621 20.1% 19,210 13,950 37.7%Write-down of equipment 4,910 11,458 (57.1)% 6,059 13,567 (55.3)%General and administrative 55,559 50,429 10.2% 112,163 98,149 14.3%Technical expense 9,947 7,508 32.5% 19,635 13,738 42.9%Net finance costs: Interest expense 29,689 33,569 (11.6)% 62,322 65,663 (5.1)%Loss on debt extinguishment 5,421 — nm 12,448 — nmTotal net finance costs 35,110 33,569 4.6% 74,770 65,663 13.9%Total expenses 160,041 167,237 (4.3)% 320,597 301,066 6.5% Income from operations 33,976 28,265 20.2% 67,766 52,168 29.9%Gain on sale of business — 42,950 (100.0)% — 42,950 (100.0)%Income from investments 4,172 3,082 35.4% 7,220 4,433 62.9%Income before income taxes 38,148 74,297 (48.7)% 74,986 99,551 (24.7)%Income tax expense 7,828 13,920 (43.8)% 19,583 22,305 (12.2)%Net income 30,320 60,377 (49.8)% 55,403 77,246 (28.3)%Net income attributable to noncontrolling interests 152 — nm 152 — nmNet income attributable to WLFC 30,168 60,377 (50.0)% 55,251 77,246 (28.5)%Preferred stock dividends 1,353 1,353 —% 2,706 2,676 1.1%Accretion of preferred stock issuance costs 70 69 1.4% 139 139 —%Net income attributable to common shareholders$28,745 $58,955 (51.2)% $52,406 $74,431 (29.6)% Basic weighted average income per common share$1.36 $2.89 $2.53 $3.70 Diluted weighted average income per common share$1.31 $2.81 $2.39 $3.55 Basic weighted average common shares outstanding 21,127 20,367 20,733 20,094 Diluted weighted average common shares outstanding 22,013 20,970 21,885 20,985 Unaudited Condensed Consolidated Balance Sheets
(In thousands, except per share data)
June 30, 2026 December 31, 2025ASSETS Cash and cash equivalents $10,725 $16,441 Restricted cash 161,497 530,500 Equipment held for operating lease, less accumulated depreciation 2,783,382 2,801,683 Maintenance rights 83,632 30,632 Equipment held for sale 77,002 20,509 Receivables, net 41,365 35,717 Spare parts inventory 51,402 56,577 Investments 152,148 104,250 Property, equipment & furnishings, less accumulated depreciation 76,904 73,835 Intangible assets, net 8,295 271 Notes receivable, net 89,279 139,945 Investments in sales-type leases, net — 16,595 Due from affiliates 3,188 — Other assets 114,357 109,360 Total assets $3,653,176 $3,936,315 LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY Liabilities: Accounts payable and accrued expenses $103,306 $105,706 Deferred income taxes 264,773 228,547 Debt obligations 2,320,904 2,700,338 Maintenance reserves 129,261 116,185 Security deposits 24,537 24,651 Unearned revenue 35,112 35,350 Due to affiliates 1,407 — Total liabilities 2,879,300 3,210,777 Redeemable preferred stock ($0.01 par value) 63,540 63,401 Shareholders’ equity: Common stock ($0.01 par value) 228 229 Paid-in capital in excess of par 71,274 72,510 Retained earnings 637,033 590,785 Accumulated other comprehensive income (loss), net of income tax expense (benefit) 61 (1,387)Total Willis Lease Finance Corporation shareholders’ equity 708,596 662,137 Noncontrolling interests 1,740 — Total equity 710,336 662,137 Total liabilities, redeemable preferred stock and equity $3,653,176 $3,936,315 CONTACT:Scott B. Flaherty Executive Vice President & Chief Financial Officer 561.413.0112
