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Willis Lease Finance
(NASDAQ:WLFC)
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Rating:63Neutral
Price Target:
$77.00
â–²(11.53% Upside)
Action:Reiterated
Date:08/04/26
WLFC’s score is driven primarily by strong profitability but constrained by elevated leverage and persistently negative free cash flow, which raise financial risk. Technicals are supportive with price above key moving averages and positive MACD, helping offset fundamental cash-flow concerns. Valuation is a headwind due to a high P/E and modest dividend yield. The earnings call adds support via strong AUM/WAC growth and improved capital flexibility despite near-term revenue mix and cost pressures.
Positive Factors
High Profitability
Sustained high margins indicate the business captures strong spreads on leasing and services, supporting durable earnings power. Elevated operating profitability provides internal funds to invest in fleet, fund maintenance needs, and absorb cyclical demand shocks without immediate reliance on external capital.
Negative Factors
Elevated Leverage History
Consistently high leverage amplifies earnings volatility and curtails strategic flexibility. In an asset-heavy leasing model, elevated indebtedness raises refinancing and interest-rate sensitivity, making the company more vulnerable to cyclical downturns or asset-value swings despite current profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained high margins indicate the business captures strong spreads on leasing and services, supporting durable earnings power. Elevated operating profitability provides internal funds to invest in fleet, fund maintenance needs, and absorb cyclical demand shocks without immediate reliance on external capital.
Read all positive factors
Willis Lease Finance Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows how much profit each business line contributes—such as aircraft leasing, engine leasing, parts sales, or services—revealing which activities generate healthy margins and which drag on earnings. Helps investors judge the sustainability of profits, where management is allocating capital, and how sensitive earnings are to lease rates, maintenance costs, or asset impairments.
Shows how much profit each business line contributes—such as aircraft leasing, engine leasing, parts sales, or services—revealing which activities generate healthy margins and which drag on earnings. Helps investors judge the sustainability of profits, where management is allocating capital, and how sensitive earnings are to lease rates, maintenance costs, or asset impairments.
Data provided by:
The Fly
The FlyWillis Lease Finance (WLFC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.64B
Dividend Yield0.68%
Average Volume (3M)46.79K
Price to Earnings (P/E)37.5
Beta (1Y)1.59
Revenue Growth23.13%
EPS Growth12.80%
CountryUS
Employees475
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)2.30
Shares Outstanding23,009,336
10 Day Avg. Volume53,309
30 Day Avg. Volume46,787
Financial Highlights & Ratios
PEG Ratio135.38
Price to Book (P/B)3.79
Price to Sales (P/S)4.07
P/FCF Ratio-11.39
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$226.00Price Target Upside227.35% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)4.73
Revenue Forecast (FY)$732.00M
Willis Lease Finance Business Overview & Revenue Model
Company Description
Willis Lease Finance Corporation (WLFC) is an international enterprise specializing in the leasing and maintenance of commercial aircraft and their engines. The company operates through two distinct divisions: Leasing and Related Services, and Spa...
How the Company Makes Money
WLFC primarily makes money by leasing aircraft engines and related equipment to customers and earning contractual lease revenue over the lease term. Key revenue streams typically include: (1) Engine leasing income: rental payments from short-term ...
Willis Lease Finance Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed clear operational momentum: strong AUM growth (+21%), a nearly 80% expansion in WAC, positive adjusted EBITDA growth (+4%), strategic fund seeding and M&A activity, meaningful liquidity ($1.3B discretionary capital) and a low leverage profile (2.78x). Headwinds included declines in maintenance reserve and parts/equipment sales, modest utilization softness, higher G&A/legal and a refinancing-related loss that increased finance costs. Management emphasized portfolio modernization, growing asset-management fee streams, and notable service wins (Pratt & Whitney) that support the company’s growth trajectory despite some near-term revenue mix headwinds. Overall, positives (scaling AUM, fund momentum, capital flexibility, services wins, and profitable adjusted EBITDA) outweigh the near-term operational and one-time challenges.Positive Updates
Assets Under Management Growth
Total assets under management increased from ~$3.6B in Q2 2025 to ~$4.4B in Q2 2026, a 21% year-over-year increase; assets on balance sheet represent 67% of AUM.
Negative Updates
Decline in Maintenance Reserve Revenues
Maintenance reserve revenues fell to $46.5M from $50.7M year-over-year (down ~8.3%); short-term maintenance reserve revenues declined to $39M from $50.2M (down ~22.3%), driven by lower flight hours on older engine types and mix shift to new-tech engines on long-term leases.
Read all updates
Q2-2026 Updates
Positive
Negative
Assets Under Management Growth
Total assets under management increased from ~$3.6B in Q2 2025 to ~$4.4B in Q2 2026, a 21% year-over-year increase; assets on balance sheet represent 67% of AUM.
Read all positive updates
Company Guidance
Management’s forward-looking guidance emphasized continued AUM growth and disciplined capital deployment: AUM rose from about $3.6B in Q2 2025 to $4.4B in Q2 2026 (+21%) with WAC at ~$1.4B (~+80% YoY) and ~67% of AUM on balance sheet; the company has roughly $1.3B of discretionary capital available, undrawn revolver capacity, and low leverage of 2.78x, and issued $200M of 2.5% convertible notes due 2031 (conversion price $89.60, 40% premium) to increase financial flexibility. Management said seeding of funds is largely complete and expects most future fund growth to come from third‑party purchases, a return to balanced growth as the pipeline closes, continuation of a nominal dividend (split‑adjusted $0.133/share declared; prior $0.40 pre‑split), and ongoing M&A activity, while forecasting stronger demand and more frequent off‑wing maintenance for modern engines (LEAP/GTF/GEnx ~60% of portfolio by NBV) and an improvement in maintenance reserve revenues (Q2 totals: $46.5M; short‑term $39M, long‑term $7.5M); additionally, share‑based compensation expense is expected to decline toward ~50% of its 2026 level by 2028.Willis Lease Finance Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
55
Neutral
Cash Flow
42
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 762.01M | 675.84M | 569.22M | 418.56M | 311.93M | 274.20M |
| Gross Profit | 600.33M | 444.10M | 429.44M | 291.26M | 202.83M | 168.77M |
| EBITDA | 379.63M | 410.02M | 352.62M | 236.85M | 164.80M | 167.63M |
| Net Income | 91.76M | 113.76M | 108.61M | 43.78M | 5.44M | 3.35M |
Balance Sheet | ||||||
| Total Assets | 3.65B | 4.03B | 3.30B | 2.65B | 2.58B | 2.46B |
| Cash, Cash Equivalents and Short-Term Investments | 10.72M | 16.44M | 9.11M | 7.07M | 12.15M | 14.33M |
| Total Debt | 2.32B | 2.71B | 2.26B | 1.80B | 1.85B | 1.79B |
| Total Liabilities | 2.88B | 3.31B | 2.75B | 2.21B | 2.17B | 2.09B |
| Stockholders Equity | 772.14M | 725.54M | 549.34M | 438.96M | 404.69M | 375.88M |
Cash Flow | ||||||
| Free Cash Flow | -245.56M | -241.34M | -546.07M | 60.96M | -148.60M | -117.29M |
| Operating Cash Flow | 138.04M | 283.24M | 284.41M | 229.74M | 144.42M | 90.66M |
| Investing Cash Flow | -254.15M | -256.40M | -764.91M | -92.78M | -194.38M | -148.00M |
| Financing Cash Flow | -119.49M | 387.60M | 444.98M | -57.94M | 43.33M | 74.05M |
Willis Lease Finance Technical Analysis
Positive
69.04
Price Trends
67.62
Positive
65.38
Positive
58.29
Positive
Market Momentum
0.53
Negative
52.21
Neutral
72.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WLFC, the sentiment is Positive. The current price of 69.04 is below the 20-day moving average (MA) of 69.67, above the 50-day MA of 67.62, and above the 200-day MA of 58.29, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 52.21 is Neutral, neither overbought nor oversold. The STOCH value of 72.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WLFC.
Willis Lease Finance Risk Analysis
Willis Lease Finance disclosed 37 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
UnderperformOutperform
Sector (63)
WLFC
Willis Lease Finance
65.21
15.84
32.09%
AER
Aercap Holdings
155.13
47.38
43.98%
Willis Lease Finance Corporate Events
DividendsStock Split
Willis Lease Finance Declares Post-Split Quarterly Dividend
Positive
Jul 30, 2026
On July 29 and July 30, 2026, Willis Lease Finance Corporation’s board declared and announced a third-quarter cash dividend of $0.133 per share of common stock, a level adjusted to reflect the company’s 3-for-1 stock split earlier in t...
Financial Disclosures
Willis Lease Finance Plans Q2 2026 Earnings Release
Neutral
Jul 21, 2026
On July 21, 2026, Willis Lease Finance Corporation announced that it would release its second-quarter 2026 financial results before the market opens on August 4, 2026. The company also scheduled a management-led conference call for 10:00 a.m. East...
Regulatory Filings and ComplianceShareholder MeetingsStock Split
Willis Lease Finance Announces Three-for-One Stock Split
Positive
Jul 17, 2026
On July 17, 2026, Willis Lease Finance Corporation implemented a three-for-one forward stock split, following prior approval by its Board of Directors and stockholders at the company’s 2026 annual meeting. The move, formalized through an ame...
Business Operations and StrategyM&A Transactions
Willis Lease Finance expands portfolio with major acquisition
Positive
Jul 15, 2026
On July 10, 2026, Willis Dallas Ltd., a wholly owned subsidiary of Willis Lease Finance Corporation, signed a purchase and sale agreement to acquire WNG II Aircraft Leasing (Cayman) Ltd. and WNG Aircraft Management 3, LLC, which together hold a po...
Stock Split
Willis Lease Finance Announces Three-for-One Stock Split
Positive
Jul 10, 2026
Willis Lease Finance Corporation has received board and stockholder approval to amend its certificate of incorporation to implement a three-for-one forward stock split of its common stock. The board set July 6, 2026, as the record date for the spl...
Business Operations and StrategyShareholder MeetingsStock Split
Willis Lease Finance Approves Three-for-One Stock Split
Positive
Jun 23, 2026
On June 23, 2026, Willis Lease Finance Corporation shareholders overwhelmingly approved a three-for-one forward stock split of the company’s common stock, along with a proportional increase in authorized shares, after the proposal was reconv...
Shareholder MeetingsStock Split
Willis Lease Adjourns Meeting on Stock Split Proposal
Neutral
May 27, 2026
Willis Lease Finance Corporation held its 2026 Annual Meeting of Stockholders on May 26, 2026, with 92.23% of eligible common shares represented, and shareholders approved the election of one Class I director, an advisory say-on-pay for named exec...
Business Operations and StrategyDividendsFinancial Disclosures
Willis Lease Finance Reports Strong First-Quarter 2026 Results
Positive
May 5, 2026
On April 29, 2026, Willis Lease Finance’s board declared a quarterly dividend of $0.40 per share, payable on May 22, 2026, to shareholders of record as of May 11, 2026, underscoring its capital return strategy. On May 5, 2026, the company re...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.