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Willis Lease Finance Corp. (WLFC)
NASDAQ:WLFC
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Willis Lease Finance
(NASDAQ:WLFC)
70Outperform
Willis Lease Finance (WLFC) vs. S&P 500 (SPY)
Market Cap
$976.89M
Dividend Yield0.51%
Average Volume (3M)47.16K
Price to Earnings (P/E)9.4
Beta (1Y)1.04
Revenue Growth28.48%
EPS Growth150.59%
CountryUS
Employees445
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)15.38
Shares Outstanding6,606,390
10 Day Avg. Volume37,988
30 Day Avg. Volume47,161
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)N/A
Price to Sales (P/S)2.12
Price to Cash Flow (P/CF)4.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Willis Lease Finance Business Overview & Revenue Model
Company DescriptionWillis Lease Finance Corporation (WLFC) is a leading provider of aviation services, specializing in leasing commercial aircraft engines and auxiliary power units to airlines, OEMs, and maintenance, repair, and overhaul (MRO) facilities worldwide. The company, established in 1985, operates within the aerospace and defense sector, focusing on asset management and innovative leasing programs that support the global aviation industry's needs.
How the Company Makes MoneyWillis Lease Finance makes money primarily through leasing aircraft engines and related equipment to commercial airlines, OEMs, and MRO facilities. The company's revenue model is based on long-term and short-term lease agreements, where clients pay a monthly or periodic fee for the use of engines and auxiliary power units. Additionally, WLFC generates income through the sale of spare parts and engines, as well as providing maintenance services and asset management solutions. The company's strategic partnerships with airlines and manufacturers enhance its revenue streams by ensuring a steady demand for its leasing and maintenance services. Furthermore, WLFC's investment in innovative programs, such as its ConstantThrust program, offers flexible leasing options that adjust to the changing needs of the aviation sector, thereby contributing to its financial performance.
Willis Lease Finance Financial Statement Overview
Summary
Willis Lease Finance shows strong revenue growth and improved profitability, with significant operational efficiency and shareholder returns. Zero debt enhances balance sheet stability, though negative free cash flow due to high capital expenditures is a concern.Income Statement
Willis Lease Finance demonstrated strong revenue growth with a significant revenue increase from $407.97 million in 2023 to $569.22 million in 2024, yielding a revenue growth rate of approximately 39.5%. The company also improved its net profit margin from 10.73% to 18.34% in the same period, indicating enhanced profitability. The Gross Profit Margin remained robust at 100% due to the nature of their business model. EBIT Margin increased to 25.37%, and EBITDA Margin improved to 60.71%, reflecting operational efficiency. Overall, the income statement shows a positive trajectory with strong growth and profitability.85
Very Positive
Balance Sheet
The balance sheet shows a solid equity position with Stockholders' Equity increasing to $549.34 million by 2024. The Debt-to-Equity Ratio improved significantly as the company reported zero total debt in 2024, reducing financial leverage risk. However, the Equity Ratio slightly decreased from 18.43% in 2023 to 16.67% in 2024, indicating a higher proportion of liabilities relative to assets. The Return on Equity increased significantly from 8.95% to 19.00%, highlighting enhanced shareholder value creation. The balance sheet reflects a transition to a more stable financial structure, though the slight dip in the equity ratio warrants attention.70
Positive
Cash Flow
Despite a strong operating cash flow of $284.41 million, Willis Lease Finance experienced a negative free cash flow of -$546.07 million in 2024, primarily due to significant capital expenditures. The Free Cash Flow to Net Income Ratio was negative, indicating cash flow issues in covering net income. However, the Operating Cash Flow to Net Income Ratio was positive at 2.72, showing robust cash generation from operations relative to net income. The cash flow statement reveals strong operational cash generation but highlights significant capital spending impacting liquidity.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 569.22M | 407.97M | 311.93M | 274.20M | 288.69M | Gross Profit |
| 429.44M | 301.84M | 202.83M | 168.77M | 177.39M | EBIT |
| 144.40M | 136.83M | 7.57M | -5.66M | 11.05M | EBITDA |
| 349.87M | 236.85M | 164.80M | 167.63M | 176.90M | Net Income Common Stockholders |
| 104.38M | 43.78M | 5.44M | 3.35M | 9.75M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 9.11M | 7.07M | 12.15M | 14.33M | 42.54M | Total Assets |
| 3.30B | 2.65B | 2.58B | 2.46B | 2.36B | Total Debt |
| 2.26B | 1.80B | 1.85B | 1.79B | 1.69B | Net Debt |
| -9.11M | 1.80B | 1.84B | 1.78B | 1.65B | Total Liabilities |
| 2.75B | 2.16B | 2.17B | 2.09B | 2.00B | Stockholders Equity |
| 549.34M | 488.93M | 404.69M | 375.88M | 364.01M |
| Cash Flow | Free Cash Flow | |||
| -546.07M | 60.96M | -148.60M | -117.29M | -318.78M | Operating Cash Flow |
| 284.41M | 229.74M | 144.42M | 90.66M | 93.44M | Investing Cash Flow |
| -764.91M | -92.78M | -194.38M | -148.00M | -506.67M | Financing Cash Flow |
| 444.98M | -57.94M | 43.33M | 74.05M | 428.48M |
Willis Lease Finance Technical Analysis
Neutral
147.87
Price Trends
167.70
Negative
185.65
Negative
161.45
Negative
Market Momentum
-7.88
Negative
47.43
Neutral
86.78
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WLFC, the sentiment is Neutral. The current price of 147.87 is above the 20-day moving average (MA) of 143.61, below the 50-day MA of 167.70, and below the 200-day MA of 161.45, indicating a neutral trend. The MACD of -7.88 indicates Negative momentum. The RSI at 47.43 is Neutral, neither overbought nor oversold. The STOCH value of 86.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WLFC.
Willis Lease Finance Risk Analysis
Willis Lease Finance disclosed 38 risk factors in its most recent earnings report. Willis Lease Finance reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Willis Lease Finance Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.04B | 5.10 | 33.88% | 1.91% | 4.62% | 101.14% | |
70 Outperform | $976.89M | 9.38 | 19.70% | 0.51% | 28.48% | 150.59% | |
68 Neutral | $843.49M | 10.32 | 17.74% | 2.52% | -3.95% | -14.56% | |
63 Neutral | $4.27B | 11.40 | 5.38% | 214.63% | 4.11% | -8.98% | |
62 Neutral | $960.14M | 14.26 | 13.56% | ― | -9.61% | -47.79% | |
59 Neutral | $979.32M | ― | -3.22% | ― | -3.37% | -156.92% | |
39 Underperform | $1.09B | ― | -95.63% | ― | ― | -2.94% |
* Industrials Sector Average
Performance Comparison
WLFC
Willis Lease Finance
147.87
100.56
212.56%
PRG
PROG Holdings
25.71
-8.30
-24.40%
APOG
Apogee
39.38
-21.95
-35.79%
CTOS
Custom Truck One Source
4.34
-0.79
-15.40%
JBI
Janus International Group
6.86
-8.13
-54.24%
EVEX
Eve Holding
3.65
-1.80
-33.03%
Willis Lease Finance Earnings Call Summary
Earnings Call Date: Mar 10, 2025 | % Change Since: -19.22% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call highlights a strong financial performance for Willis Lease Finance Corporation in 2024, with record revenues and growth driven by the core leasing business and innovative financing strategies. However, challenges such as increased net finance costs, higher G&A expenses, and equipment write-downs were also acknowledged.Highlights
Record-Breaking Revenue and Growth
2024 was the strongest year for Willis Lease Finance Corporation as a publicly traded company, with total revenues of $569.2 million and pre-tax income of $152.6 million, representing a 127% increase in earnings before tax compared to the prior year.
Strong Performance of Core Leasing Business
The core leasing business achieved a total portfolio size of $2.87 billion by year-end 2024, with core lease rent revenues of $238.2 million and interest revenues of $11.7 million.
Successful Capital Deployment
In 2024, WLFC acquired nearly $1 billion in engines and aircraft, with 35% being current technology assets and 65% future technology assets.
Innovative Financing and Capital Structure
The company completed its third JOLCO financing, the industry's first-ever engine warehouse financing for $500 million, and expanded its credit facility to a new five-year $1 billion revolving credit facility.
Dividend Payments and Shareholder Returns
WLFC paid a third consecutive quarterly dividend of $0.25 per share in February 2025, along with a one-time special dividend of $1 per share in the second quarter of 2024.
New Constant Thrust Deal
Signed a new constant thrust deal for more than 20 CFM56-7B engines, providing significant savings for the customer and deploying a meaningful amount of capital.
Lowlights
Increased Net Finance Costs
Net finance costs increased to $104.8 million in 2024 from $78.8 million in 2023, due to increased indebtedness and the rise in the weighted average cost of debt.
Higher General and Administrative Expenses
G&A expenses increased to $146.8 million in 2024 from $115.7 million in 2023, driven by personnel costs, including share-based compensation and one-time payments to executives.
Write-Down of Equipment
The write-down of equipment was $11.2 million for 2024, with $10.4 million occurring in the fourth quarter, largely attributed to annual impairment reviews.
Company Guidance
During the Willis Lease Finance Corporation Fourth Quarter 2024 Earnings Call, management provided guidance reflecting a robust financial outlook for the company. They reported a record return on equity of 21% for the year, with total revenues of $569.2 million and a pre-tax income of $152.6 million. The company executed significant capital returns to shareholders, including a third consecutive $0.25 per share quarterly dividend. Willis Lease Finance acquired nearly $1 billion in engines and aircraft in 2024, focusing on modernizing their portfolio with 35% current and 65% future technology assets. The company's leverage at year-end was 3.48 times, slightly up from the previous quarter, while cash flow from operations grew by 23.8% to $284.4 million. Management highlighted their strategy of maintaining a strong balance between supporting shareholder returns and achieving growth and leverage targets, supported by strategic financings such as the industry's first engine warehouse financing and an expanded revolving credit facility.Willis Lease Finance Corporate Events
Financial Disclosures
Willis Lease Finance to Announce Q1 2025 Results
Neutral
Apr 22, 2025
On April 22, 2025, Willis Lease Finance Corporation announced it will release its first quarter 2025 financial results on May 6, 2025, followed by a conference call to discuss these results. This announcement is part of the company’s ongoing efforts to keep stakeholders informed about its financial performance and operational strategies, potentially impacting its market positioning and stakeholder confidence.
Spark’s Take on WLFC Stock
According to Spark, TipRanks’ AI Analyst, WLFC is a Outperform.
Willis Lease Finance is on a strong growth trajectory with significant revenue increase and improved profitability. The elimination of debt strengthens the balance sheet, but liquidity concerns due to negative free cash flow need attention. Despite the bearish technical indicators, the stock’s attractive valuation and positive earnings call sentiment highlight its potential. Investors should be mindful of the risks posed by increased costs and strategic investments.
To see Spark’s full report on WLFC stock, click here.
Executive/Board Changes
Willis Lease Finance Amends CEO Compensation Agreement
Neutral
Apr 4, 2025
On March 31, 2025, Willis Lease Finance Corporation’s Compensation Committee approved an amendment to the employment agreement with Charles F. Willis IV, canceling a non-qualified stock option for 231,000 shares and altering the vesting schedule for a restricted stock award. This amendment impacts Mr. Willis’s compensation structure, aligning it with the company’s 2023 Incentive Stock Plan, and affects the vesting conditions based on his continued service or termination circumstances.
Executive/Board Changes
Willis Lease Finance Renews Executive Chairman’s Contract
Neutral
Mar 19, 2025
On March 13, 2025, Willis Lease Finance Corporation’s Board of Directors approved a renewed and amended employment agreement for Charles F. Willis IV, who will continue as Executive Chairman. The agreement includes a five-year term with automatic renewals, an initial annual base salary of $1,269,000, and a target annual bonus of 150% of the base salary. Additionally, the agreement introduces a new trigger for change in control and includes a grant of restricted stock and stock options for Mr. Willis, which are subject to vesting conditions and are part of the company’s incentive plan.
DividendsBusiness Operations and StrategyFinancial Disclosures
Willis Lease Finance Achieves Record Financial Results for 2024
Positive
Mar 10, 2025
Willis Lease Finance Corporation reported record financial results for 2024, with total revenues reaching $569.2 million and pre-tax income at $152.6 million. The company experienced significant growth in core lease rent and maintenance reserve revenues, driven by a robust aviation market, and successfully reinvested earnings into high-demand engines and aircraft. The book value of lease assets increased significantly, and the company expanded its credit facility to support further growth. These achievements reflect the company’s strong market position and operational efficiency, benefiting stakeholders through increased dividends and asset value.
Financial Disclosures
Willis Lease Finance to Announce 2024 Financial Results
Neutral
Feb 10, 2025
On February 10, 2025, Willis Lease Finance Corporation announced plans to release its financial results for the fourth quarter and full year of 2024 on March 10, 2025. The announcement includes a scheduled conference call on the same day, led by the executive management team, to discuss these results. This event is significant as it could provide insights into the company’s operational performance and future outlook, potentially impacting stakeholders’ perspectives.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.