Willis Lease Finance (WLFC) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenues of $151.1M and pre-tax income of $57.9M, nearly double Q1 and up over 200% year-over-year, driven by strong leasing, services, and maintenance reserve revenue.

• Net income attributable to common shareholders was $41.7M–$42.6M, with diluted EPS of $6.21–$6.34, both up over 200% year-over-year.

• Paid a one-time $1/share special dividend and initiated a $0.25/share regular quarterly dividend, reflecting strong financial health and commitment to shareholder returns.

• Acquired $258.8M in equipment, expanding the lease portfolio to 344 engines, 12 aircraft, and one marine vessel.

• Cash flows from operations for H1 2024 were $129.7M, up over 31% year-over-year.

Financial highlights

• Q2 2024 revenues reached $151.1M, with core lease rent revenues at $55.9M and maintenance revenues at $62.9M, up over 77% year-over-year.

• Gain on sale of lease equipment was $14.4M in Q2 and $23.6M for H1 2024, both up significantly year-over-year.

• Total revenue for H1 2024 was $270.2M, up 36.1% year-over-year.

• Book value per diluted share rose to $73.64 at June 30, 2024.

• Pre-tax income margin for Q2 2024 was 38.3%, up from 17.4% a year ago.

Outlook and guidance

• Management expects continued strong demand for leased engines and maintenance services due to supply chain constraints and aviation market recovery.

• Anticipates sustained high lease rates and selective counterparty engagement.

• Equity base, internally generated funds, and existing debt facilities are expected to support operations for the next twelve months.

• Long-term maintenance reserve revenues may decrease as more engines extend leases, with some recent non-recurring items.

• Forward-looking statements caution about risks from global events, market volatility, and industry trends.