Willis Lease Finance Corporation Reports Solid Third Quarter 2026 Financial Results with Record Revenues and Income From Investments

Willis Lease Finance reported record quarterly total revenue of $246.3 million, up 34.3%, but the revenue mix was heavily influenced by spare parts and equipment sales of $98.1 million. Equipment sales were $89.1 million and related to five aircraft, two engines, and one airframe. The Company said the increase in equipment sales primarily reflected the sale of five aircraft acquired in the WNG Acquisition to WMES, where WLFC acted in a warehouse capacity. Lease rent revenue, the core leasing line, increased 10.2% to $84.4 million, supported by a larger average portfolio and a strong lease rate factor.

Maintenance revenue was uneven. Maintenance reserve revenue declined 48.3% to 39,326. Long-term maintenance revenue was $2.6 million versus $29.5 million in the prior-year quarter because maintenance reserves and end-of-lease payments for assets coming off lease with long-term conditions were higher in the earlier period. Engines on lease with non-reimbursable usage fees generated $36.8 million of short-term maintenance revenues, compared with $46.6 million in the comparable prior period. In contrast, maintenance services revenue increased 208.5% to 11,217 and management and advisory fees increased 140.0% to 4,515.

Revenue growth did not translate into higher quarterly earnings. Total expenses increased 61.6% to 234,837, including cost of spare parts and equipment sales of 91,070, cost of maintenance services of 12,918, technical expense of 13,495, and depreciation and amortization expense of 31,367. Income from operations fell 69.8% to 11,485. Income from investments increased 40.8% to 7,311, but gain on sale of leased equipment declined 66.2% to 5,452. Net income attributable to common shareholders was $ 10,228, down 55.3%, and diluted weighted average income per common share was $ 0.47 versus $ 1.08.

The balance sheet reflects a larger operating lease portfolio. Equipment held for operating lease was $ 3,024,361 at September 30, 2026, compared with $ 2,801,683 at December 31, 2025, while maintenance rights were 146,479 compared with 30,632. Debt obligations were 2,524,677, compared with 2,700,338, and restricted cash was 122,610, compared with 530,500. The Company reported $4,174.2 million in book value of lease assets owned directly or through joint ventures and $4.9 billion of assets under management.

For the nine months, total revenue increased 18.3% to 634,685, while income from operations declined 12.1% to 79,251. Nine-month net income attributable to common shareholders declined 35.6% to $ 62,635, including the absence of a gain on sale of business that was 42,950 in the prior-year period. Adjusted EBITDA was $ 345,469 versus $ 354,396. The release did not provide forward financial guidance, so the next reported results will be important for assessing management’s expectation that core leasing profits will accelerate as economies of scale are realized.