COCONUT CREEK, FL — August 4, 2026 — 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 million
•Adjusted 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
1.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:
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
% Change
REVENUE
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
—
nm
Total 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
—
nm
Net 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, 2025
ASSETS
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
