EX-99.1 2 q12025ex991.htm EX-99.1 Document

Exhibit 99.1
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CONTACT:
Scott B. Flaherty
NEWS RELEASE Executive Vice President & Chief Financial Officer
 561.413.0112
 

Willis Lease Finance Corporation Reports First Quarter 2025 Financial Results

Delivers Pre-Tax Income of $25.3 Million and Record Quarterly Revenue of $157.7 Million

Declares Second Quarter 2025 Dividend of $0.25 Per Share
 
COCONUT CREEK, FL — May 6, 2025 — 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, 2025. The Company also announced a quarterly dividend of $0.25 per share, payable on May 22, 2025, to shareholders of record as of the close of business on May 12, 2025.

First Quarter 2025 Highlights (All metrics compared to first quarter 2024, except where noted)

•Total, record, quarterly revenues of $157.7 million, an increase of 32.5%
•Solid quarterly pre-tax income of $25.3 million
•Lease rent revenue of $67.7 million, an increase of 28.1%
•Maintenance reserve revenue of $54.9 million, an increase of 25.0%
•Spare parts and equipment sales of $18.2 million, compared to $3.3 million
•Portfolio utilization increased to 86.4% at quarter end, compared to 76.7% at year end 2024

For the three months ended March 31, 2025, total revenue was $157.7 million, up 32.5% as compared to $119.1 million for the same period in 2024. For the first quarter of 2025, core lease rent and maintenance reserve revenues were $122.6 million in the aggregate, up 27% as compared to $96.8 million for the same period in 2024. The growth was predominantly driven by core, recurring lease and maintenance revenues associated with the continued strength of the aviation marketplace, as airlines leverage the Company’s leasing, parts and maintenance capabilities to avoid protracted, expensive engine shop visits.

“WLFC’s strong first quarter 2025 financial results reflect the strength in our business model, which enables us to provide advanced and efficient solutions to airlines,” said Austin C. Willis, Chief Executive Officer of WLFC. “While concerns over tariffs have created market volatility, we remain confident in the drivers of our business. The cost of new engines continues to drive operators towards leasing, and our maintenance capabilities and programs provide value and certainty for cost conscious airlines.”

First Quarter 2025 Operating Results

Maintenance reserve revenue for the quarter ended March 31, 2025, was $54.9 million, compared to $43.9 million for the quarter ended March 31, 2024, reflecting the increased size of the Company’s lease portfolio and leases on short-term lease conditions.

Engines on lease with “non-reimbursable” usage fees generated $45.3 million of short-term maintenance revenues for the quarter ended March 31, 2025, compared to $37.6 million for the quarter ended March 31, 2024.



During the first quarter of 2025, the Company recognized $9.6 million of long-term maintenance revenue, compared to $6.3 million for the quarter ended March 31, 2024. Long-term maintenance revenue is recognized at the end of a lease period as the related maintenance reserve liability is released from the balance sheet.

Spare parts and equipment sales increased to $18.2 million for the quarter ended March 31, 2025, compared to $3.3 million for the quarter ended March 31, 2024. The year-over-year increase in spare parts sales reflects the heightened demand for surplus material as operators extend the lives of their current generation engine portfolios. The increase was influenced by a discrete $7.0 million sale. Equipment sales for the three months ended March 31, 2025, were $2.2 million for the sale of one engine. There were no equipment sales for the three months ended March 31, 2024.

For the quarter ended March 31, 2025, the gain on sale of leased equipment was $4.4 million, reflecting the sale of seven engines, one airframe, and other parts and equipment from the lease portfolio. During the three months ended March 31, 2024, the Company sold eight engines and other parts and equipment for a net gain of $9.2 million.

General and administrative expenses were influenced by an $11.4 million increase in consultant-related fees predominantly related to the Company’s sustainable aviation fuel project. As the project is in its early design stage, we have expensed the related costs, which is in line with accounting principles generally accepted in the United States (“GAAP”).

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 $3,219.9 million as of March 31, 2025.

Balance Sheet

As of March 31, 2025, the Company’s lease portfolio was $2,819.5 million, consisting of $2,597.8 million of equipment held in its operating lease portfolio, $179.3 million of notes receivable, $25.2 million of maintenance rights, and $17.3 million of investments in sales-type leases, which represented 347 engines, 15 aircraft, one marine vessel and other leased parts and equipment. As of December 31, 2024, the Company’s lease portfolio was $2,872.3 million, consisting of $2,635.9 million of equipment held in its operating lease portfolio, $183.6 million of notes receivable, $31.1 million of maintenance rights, and $21.6 million of investments in sales-type leases, which represented 354 engines, 16 aircraft, one marine vessel and other leased parts and equipment.

Conference Call

WLFC will hold a conference call today at 10:00 a.m. Eastern Daylight Time to discuss its first quarter 2025 results. To participate in the conference call or webcast, please use the following dial-in numbers or visit the webcast link.

U.S. and Canada: +1 (800) 289-0459
International: +1 (646) 828-8082
Conference ID: 578662
https://event.webcasts.com/starthere.jsp?ei=1716437&tp_key=f56060bee8

A replay of the conference call will be available two hours after the completion of the conference call. To access the replay, please visit our website at www.wlfc.global under the Investor Relations section for details.


 
About Willis Lease Finance Corporation
 
Willis Lease Finance Corporation leases large and regional spare commercial aircraft engines, auxiliary power units 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 through Willis Asset Management Limited, 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. Generally, these statements can be identified by the use of words such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. Any forward-looking statement made by the Company is based only on information currently available to the Company and speaks only as of the date on which it is made. We undertake no obligation to update them, except as may be required by law. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results may differ materially from the results discussed 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 pandemics; 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; 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 reports filed with the Securities and Exchange Commission.


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

Three months ended March 31,
 20252024% Change
REVENUE 
Lease rent revenue$67,739 $52,881 28.1 %
Maintenance reserve revenue54,859 43,870 25.0 %
Spare parts and equipment sales18,240 3,288 454.7 %
Interest revenue3,934 2,269 73.4 %
Gain on sale of leased equipment4,437 9,201 (51.8)%
Gain on sale of financial assets378 — nm
Maintenance services revenue5,586 5,227 6.9 %
Other revenue2,559 2,347 9.0 %
Total revenue157,732 119,083 32.5 %
EXPENSES
Depreciation and amortization expense25,024 22,486 11.3 %
Cost of spare parts and equipment sales15,323 2,705 466.5 %
Cost of maintenance services5,329 5,574 (4.4)%
Write-down of equipment2,109 261 708.0 %
General and administrative47,720 29,581 61.3 %
Technical expense6,230 8,255 (24.5)%
Net finance costs:
     Interest expense32,094 23,003 39.5 %
Total net finance costs32,094 23,003 39.5 %
Total expenses133,829 91,865 45.7 %
Income from operations23,903 27,218 (12.2)%
Income from joint ventures1,351 2,674 (49.5)%
Income before income taxes25,254 29,892 (15.5)%
Income tax expense8,385 9,023 (7.1)%
Net income16,869 20,869 (19.2)%
Preferred stock dividends1,323 900 47.0 %
Accretion of preferred stock issuance costs70 12 483.3 %
Net income attributable to common shareholders$15,476 $19,957 (22.5)%
Basic weighted average income per common share$2.34 $3.12 
Diluted weighted average income per common share$2.21 $3.00 
Basic weighted average common shares outstanding6,606 6,387 
Diluted weighted average common shares outstanding7,000 6,659 




Unaudited Condensed Consolidated Balance Sheets
(In thousands, except per share data)
 
 March 31, 2025December 31, 2024
ASSETS
Cash and cash equivalents$32,356 $9,110 
Restricted cash116,737 123,392 
Equipment held for operating lease, less accumulated depreciation2,597,792 2,635,910 
Maintenance rights25,167 31,134 
Equipment held for sale19,125 12,269 
Receivables, net41,504 38,291 
Spare parts inventory67,318 72,150 
Investments65,210 62,670 
Property, equipment & furnishings, less accumulated depreciation54,342 48,061 
Intangible assets, net1,601 2,929 
Notes receivable, net179,283 183,629 
Investments in sales-type leases, net17,271 21,606 
Other assets56,927 56,045 
Total assets$3,274,633 $3,297,196 
LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITY
Liabilities:
Accounts payable and accrued expenses$56,855 $75,983 
Deferred income taxes191,297 185,049 
Debt obligations2,231,593 2,264,552 
Maintenance reserves104,452 97,817 
Security deposits24,090 23,424 
Unearned revenue37,666 37,911 
Total liabilities2,645,953 2,684,736 
Redeemable preferred stock ($0.01 par value)63,192 63,122 
Shareholders’ equity:
Common stock ($0.01 par value)74 72 
Paid-in capital in excess of par57,967 50,928 
Retained earnings505,083 491,439 
Accumulated other comprehensive income, net of tax2,364 6,899 
Total shareholders’ equity565,488 549,338 
Total liabilities, redeemable preferred stock and shareholders’ equity$3,274,633 $3,297,196