Record Quarterly Lease Rent Revenue Reported in Willis Lease Finance Corporation’s First Quarter 2026 Financial Results

COCONUT CREEK, Fla., May 05, 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 first quarter ended March 31, 2026. The Company also announced a quarterly dividend of $0.40 per share of common stock outstanding. The dividend is expected to be paid on May 22, 2026 to shareholders of record at the close of business on May 11, 2026.

First Quarter 2026 Highlights (All metrics compared to first quarter 2025, except where noted)

• Quarterly total revenue of $194.3 million, an increase of 23.2%
• Income from operations of $33.8 million, an increase of 41.4%
• Quarterly pre-tax income of $36.8 million, an increase of 45.9%
• Diluted weighted average income per common share of $3.26, an increase of 47.5%
• Record high quarterly lease rent revenue of $77.4 million, an increase of 14.2%
• Record high quarterly maintenance services revenue of $9.8 million, an increase of 74.9%
• Gain on sale of leased equipment of $18.0 million, and increase of 304.8%
• Net income attributable to common shareholders of $23.7 million, an increase of 52.9%
• Adjusted EBITDA of $123.8 million, an increase of 19.9%
• Portfolio utilization increased to 85.8% at quarter end, compared to 79.9%
  
  

For the three months ended March 31, 2026, total revenue was $194.3 million, up 23.2% as compared to $157.7 million for the same period in 2025. For the first quarter of 2026, core lease rent and maintenance reserve revenues were $132.9 million in the aggregate, up 8.4% as compared to $122.6 million for the same period in 2025. The growth was predominantly driven by core lease and maintenance revenues associated with the continued strength of the aviation marketplace, as airlines leverage the Company’s extensive portfolio of in-demand engines as well as our parts and maintenance capabilities to avoid protracted, expensive engine shop visits.

“In the first quarter we outperformed nearly every revenue and earnings metric compared to Q1 2025,” said Austin Willis, CEO of WLFC, “and, thanks to the capital strategy we executed, we are poised for significant growth.”

First Quarter 2026 Operating Results

Lease rent revenue increased by $9.6 million, or 14.2%, to $77.4 million in the three months ended March 31, 2026 from $67.7 million for the three months ended March 31, 2025. The increase is due to an increase in the average size of the portfolio as compared to that of the prior year period as well as an increase in average utilization (based on net book value of equipment held for operating lease, maintenance rights, and notes receivable and investments in sales-type leases net of allowances) of equipment held in our operating lease portfolio.

During the first quarter of 2026, the Company recognized $12.4 million of long-term maintenance revenue, compared to $9.6 million for the quarter ended March 31, 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 March 31, 2026, the gain on sale of leased equipment was $18.0 million, reflecting the sale of 14 engines from the lease portfolio. During the three months ended March 31, 2025, the Company sold seven engines, one airframe, and other parts and equipment for a net gain of $4.4 million.

In March 2026, the Company’s investment fund partnership with Liberty Mutual Investments commenced operations.

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 $3,563.5 million as of March 31, 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 $123.8 million and $103.3 million for the three months ended March 31, 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 March 31,   2026
 2025
  (in thousands) Net income attributable to common shareholders $23,661  $15,476 Add: Income tax expense  11,755   8,385 Add: Interest expense  32,633   32,094 Add: Preferred stock dividends/costs  1,422   1,393 Add: Loss on debt extinguishment  7,027   — Add: Depreciation and amortization expense  30,178   25,024 Add: Stock compensation expense  13,752   6,907 Add: Write-down of equipment  1,149   2,109 Add: Acquisition, financing and divestitures related expenses  2,242   166 Add: Other (1)  28   11,777 Adjusted EBITDA $123,847  $103,331 

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1. In Q1 2026 and 2025, the Company recognized $0.03 million and $11.8 million, respectively, in non-recurring project expenses associated with the sustainable aviation fuels project, which the Company decided to cease investment in and pursue strategic alternatives for, including, a potential sale.
   
   

Balance Sheet

As of March 31, 2026, the Company’s lease portfolio was $2,857.0 million, consisting of $2,760.5 million of equipment held in its operating lease portfolio, $65.6 million of notes receivable, $30.6 million of maintenance rights, and $0.3 million of investments in sales-type leases, which represented 342 engines, 20 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 first 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: 3012326
Participant Passcode: 989617

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.

CONTACT:Scott B. Flaherty Executive Vice President & Chief Financial Officer 561.413.0112  

Unaudited Condensed Consolidated Statements of Income
(In thousands, except per share data) 

  Three months ended March 31,      2026   2025  % ChangeREVENUE        Lease rent revenue $77,385  $67,739  14.2 %Maintenance reserve revenue  55,512   54,859  1.2 %Spare parts and equipment sales  21,687   18,240  18.9 %Interest revenue  2,788   3,934  (29.1)%Gain on sale of leased equipment  17,959   4,437  304.8 %Gain on sale of financial assets  438   378  15.9 %Maintenance services revenue  9,769   5,586  74.9 %Management and advisory fees  7,895   1,963  302.2 %Other revenue  913   596  53.2 %Total revenue  194,346   157,732  23.2 %         EXPENSES        Depreciation and amortization expense  30,178   25,024  20.6 %Cost of spare parts and equipment sales  14,417   15,323  (5.9)%Cost of maintenance services  8,860   5,329  66.3 %Write-down of equipment  1,149   2,109  (45.5)%General and administrative  56,604   47,720  18.6 %Technical expense  9,688   6,230  55.5 %Net finance costs:        Interest expense  32,633   32,094  1.7 %Loss on debt extinguishment  7,027   —  nmTotal net finance costs  39,660   32,094  23.6 %Total expenses  160,556   133,829  20.0 %         Income from operations  33,790   23,903  41.4 %Income from investments  3,048   1,351  125.6 %Income before income taxes  36,838   25,254  45.9 %Income tax expense  11,755   8,385  40.2 %Net income  25,083   16,869  48.7 %Preferred stock dividends  1,353   1,323  2.3 %Accretion of preferred stock issuance costs  69   70  (1.4)%Net income attributable to common shareholders $23,661  $15,476  52.9 %         Basic weighted average income per common share $3.49  $2.34   Diluted weighted average income per common share $3.26  $2.21            Basic weighted average common shares outstanding  6,778   6,606   Diluted weighted average common shares outstanding  7,252   7,000                         

Unaudited Condensed Consolidated Balance Sheets
(In thousands, except per share data)

  March 31, 2026 December 31, 2025ASSETS    Cash and cash equivalents $24,554  $16,441 Restricted cash  196,023   530,500 Equipment held for operating lease, less accumulated depreciation  2,760,517   2,801,683 Maintenance rights  30,576   30,632 Equipment held for sale  14,764   20,509 Receivables, net  38,886   35,717 Spare parts inventory  56,321   56,577 Investments  128,996   104,250 Property, equipment & furnishings, less accumulated depreciation  75,767   73,835 Intangible assets, net  271   271 Notes receivable, net  65,551   139,945 Investments in sales-type leases, net  344   16,595 Due from affiliates  229   — Other assets  113,386   109,360 Total assets $3,506,185  $3,936,315      LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITY    Liabilities:    Accounts payable and accrued expenses $72,636  $105,706 Deferred income taxes  240,112   228,547 Debt obligations  2,253,705   2,700,338 Maintenance reserves  124,562   116,185 Security deposits  24,398   24,651 Unearned revenue  32,928   35,350 Total liabilities  2,748,341   3,210,777      Redeemable preferred stock ($0.01 par value)  63,470   63,401      Shareholders’ equity:    Common stock ($0.01 par value)  77   76 Paid-in capital in excess of par  83,751   72,663 Retained earnings  611,333   590,785 Accumulated other comprehensive loss, net of tax  (787)  (1,387)Total shareholders’ equity  694,374   662,137 Total liabilities, redeemable preferred stock and shareholders’ equity $3,506,185  $3,936,315