Willis Lease Finance (WLFC) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue of $730.2 million in 2025, up 28.3% year-over-year, with Q4 revenue at $193.6 million, up 27% year-over-year.

• Pre-tax income reached $160.6 million, reflecting strong demand and market conditions.

• Adjusted EBITDA was $459.1 million, up 16.6% from the prior year, highlighting robust cash generation.

• Portfolio utilization averaged 85% for 2025, up from 83% in 2024.

• Assets under management reached $4.1 billion, with 55% being modern technology engines.

Financial highlights

• Lease rent revenue increased 22.4% to $291.6 million; maintenance reserve revenue grew 8.4% to $232.0 million.

• Spare parts and equipment sales surged to $95.5 million, up from $27.1 million in 2024.

• Gain on sale of lease equipment was $54 million, with a 20% margin on $269.7 million of gross sales.

• Net income attributable to common shareholders was $108.1 million, up 3.5% year-over-year.

• Return on equity was 18% for 2025.

Outlook and guidance

• Long-term demand for engine shop visits remains strong through the mid-2030s, especially for GTF and LEAP engines.

• Large pipeline and ongoing supply chain issues in the aircraft and engine OEM sector are expected to drive continued demand for leased engines.

• Expect continued growth in fee-related revenue from new fund initiatives and joint ventures.

• Shop visits for older engine types expected to taper, but offset by newer engine types.

• The company is well positioned for future growth and investment opportunities, leveraging its strong balance sheet and diverse financial partners.