Willis Lease Finance (WLFC) AI Stock Analysis

• Market Cap: $905.94M
• Dividend Yield: 0.85%
• Average Volume (3M): 52.76K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 1.33
• Revenue Growth: 27.90%
• EPS Growth: 19.25%
• Country: US
• Employees: 445
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 3.25
• Shares Outstanding: 6,814,154
• 10 Day Avg. Volume: 49,972
• 30 Day Avg. Volume: 52,758
• PEG Ratio: 0.08
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 2.38
• P/FCF Ratio: -2.48
• Enterprise Value/Market Cap: 3.42
• Enterprise Value/Revenue: 4.51
• Enterprise Value/Gross Profit: 5.87
• Enterprise Value/Ebitda: 7.60
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 12.41
• Revenue Forecast (FY): $635.00M

• Rating: 71 Outperform
• Price Target: $140.00 ▲(16.16% Upside)

Willis Lease Finance's strong earnings call performance and undervaluation are significant positives. However, technical indicators suggest bearish trends, and financial performance is mixed due to high leverage and negative free cash flow. The overall score reflects these strengths and risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for leasing services, enhancing market position and supporting long-term financial stability.

Strategic Expansion

Strategic expansion of the lease portfolio strengthens asset base and supports future revenue growth, enhancing competitive advantage.

Financial Flexibility

The credit facility enhances financial flexibility, supporting strategic growth initiatives and providing stability in capital management.

Negative Factors

High Leverage

High leverage poses risks to financial stability, potentially limiting the company's ability to invest in growth and manage economic downturns.

Negative Free Cash Flow

Negative free cash flow indicates challenges in converting earnings into cash, which can impact the company's ability to fund operations and growth.

Operational Efficiency Pressure

Decreasing EBIT margin suggests pressure on operational efficiency, which may affect profitability and require cost management improvements.

Willis Lease Finance Business Overview & Revenue Model

Company Description

Willis Lease Finance Corporation (WLFC) is a global leader in the aviation finance industry, specializing in the leasing and financing of commercial aircraft engines and other aviation-related assets. The company operates primarily within the aerospace sector, providing a range of services that include the leasing of aircraft engines, the management of spare parts, and the offering of comprehensive maintenance and repair programs. WLFC serves a diverse clientele, including airlines, aircraft manufacturers, and maintenance, repair, and overhaul (MRO) providers, ensuring a robust portfolio of aviation assets.

How the Company Makes Money

Willis Lease Finance generates revenue primarily through the leasing of aircraft engines and other aviation assets. The company's core revenue streams include lease payments made by customers over the term of the lease agreements, which typically span multiple years. Additionally, WLFC earns income from the sale of spare parts, maintenance services, and support services provided to lessees. The company may also benefit from financial transactions related to the acquisition and disposition of its assets. Strategic partnerships with airlines and other aviation stakeholders enhance its market presence and provide stability to its revenue model, while the management of its asset portfolio allows for optimization of earnings through efficient asset deployment.

Willis Lease Finance Financial Statement Overview

Summary

Willis Lease Finance shows strong profitability and operational efficiency with healthy margins. However, challenges include negative revenue growth, high leverage, and negative free cash flow, which could impact financial stability and liquidity.

Income Statement

Willis Lease Finance shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth, but the company maintains a solid gross profit margin of 72.1% and a net profit margin of 17.6%. The EBIT and EBITDA margins are strong at 26.2% and 57.8%, respectively, suggesting operational efficiency. However, the negative revenue growth rate is a concern, indicating potential challenges in maintaining top-line growth.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. The TTM data shows a debt-to-equity ratio of 3.14, which is relatively high. Return on equity is reasonable at 19.8%, reflecting decent profitability relative to equity. The equity ratio is moderate, suggesting a balanced capital structure but with a reliance on debt financing.

Cash Flow

Cash flow analysis indicates challenges with free cash flow, which is negative in the TTM period. The operating cash flow to net income ratio is strong at 8.24, showing good cash generation from operations. However, the negative free cash flow growth and free cash flow to net income ratio of -1.31 highlight potential issues in sustaining cash reserves and funding operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	686.06M	569.22M	418.56M	311.93M	274.20M	288.69M
Gross Profit	527.46M	429.44M	291.26M	202.83M	168.77M	177.39M
EBITDA	407.16M	352.62M	236.85M	164.80M	167.63M	174.90M
Net Income	122.63M	108.61M	43.78M	5.44M	3.35M	9.75M
Balance Sheet
Total Assets	3.42B	3.30B	2.65B	2.58B	2.46B	2.45B
Cash, Cash Equivalents and Short-Term Investments	170.97M	9.11M	7.07M	12.15M	14.33M	78.92M
Total Debt	2.24B	2.26B	1.80B	1.85B	1.79B	1.70B
Total Liabilities	2.71B	2.75B	2.21B	2.17B	2.09B	2.04B
Stockholders Equity	713.53M	549.34M	438.96M	404.69M	375.88M	413.74M
Cash Flow
Free Cash Flow	-411.68M	-546.07M	60.96M	-148.60M	-117.29M	-318.78M
Operating Cash Flow	277.04M	284.41M	229.74M	144.42M	90.66M	93.44M
Investing Cash Flow	-418.15M	-764.91M	-92.78M	-194.38M	-148.00M	-506.67M
Financing Cash Flow	206.95M	444.98M	-57.94M	43.33M	74.05M	428.48M

Willis Lease Finance Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 120.52
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 120.52 is below the 20-day moving average (MA) of 125.50, below the 50-day MA of 127.49, and below the 200-day MA of 142.77, indicating a neutral trend. The MACD of 2.10 indicates Negative momentum. The RSI at 60.10 is Neutral, neither overbought nor oversold. The STOCH value of 69.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WLFC.

Willis Lease Finance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AER	77 Outperform	$24.64B	6.46	21.71%	0.76%	2.90%	67.73%
AL	72 Outperform	$7.16B	7.44	12.74%	1.37%	9.67%	96.43%
WLFC	71 Outperform	$905.94M	7.96	18.91%	0.85%	27.90%	19.25%
R	68 Neutral	$7.65B	16.07	16.26%	1.80%	1.68%	9.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HTZ	50 Neutral	$1.60B	-1.46	-567.03%	―	-7.36%	62.27%
CAR	41 Neutral	$4.61B	-2.15	―	―	-1.22%	-639.34%

Willis Lease Finance Corporate Events

Willis Lease Finance Prices $392.9M Fixed-Rate Notes

On December 11, 2025, Willis Lease Finance Corporation announced the pricing of $392.9 million in fixed-rate notes through its subsidiary, Willis Engine Structured Trust IX. The notes, secured by a portfolio of 47 aircraft engines and two airframes, are part of an offering expected to close on December 23, 2025, subject to customary conditions. The issuance aims to bolster the company’s financial operations, but the notes will not be registered under the Securities Act of 1933, limiting their sale to qualified institutional buyers and non-U.S. persons.

Willis Lease Finance Announces $392.9M Note Offering

On December 10, 2025, Willis Lease Finance Corporation announced the offering of $392.9 million in fixed rate notes through its subsidiary, WEST. The proceeds from this offering will be used to cover fees, establish reserve accounts, and facilitate the acquisition of aircraft engines and airframes from WLFC, aiding in debt repayment and general corporate purposes. This strategic move is expected to impact the company’s financial operations and its positioning within the aviation leasing industry.

Willis Lease Finance Updates CEO Employment Terms

On December 5, 2025, Willis Lease Finance Corporation’s Board of Directors approved amendments to employment agreements for CEO Austin Willis and Executive Chairman Charles Willis. The changes include updates to the Change in Control definitions and additional perquisites for Austin Willis. Additionally, the company repurchased 30,000 shares from Charles Willis for estate planning purposes, with the transaction approved by a special committee of independent directors.

Willis Lease Finance Grants Stock Options to Chairman

On November 10, 2025, Willis Lease Finance Corporation’s Board of Directors approved a non-qualified stock option grant to Executive Chairman Charles F. Willis IV, allowing him to purchase up to 300,000 shares of the company’s common stock. This move aims to retain and incentivize Mr. Willis, with the options vesting over four years and exercisable under specific conditions, potentially impacting the company’s leadership stability and strategic direction.

Willis Lease Finance Increases Quarterly Dividend to $0.40

On October 28, 2025, Willis Lease Finance Corporation’s Board of Directors declared a quarterly dividend of $0.40 per share, to be paid on November 26, 2025, marking an increase from the previous $0.25 per share. The company reported strong financial results for the third quarter of 2025, with a 25.4% increase in total revenue to $183.4 million and a 25.4% rise in pre-tax income to $43.2 million compared to the same period in 2024. This growth reflects the ongoing strength of the aviation marketplace and increased demand for the company’s leasing model and maintenance capabilities.

Willis Lease Finance Secures $750M Credit Facility

On October 31, 2025, Willis Mitsui & Co. Engine Support Limited (WMES), a joint venture between Willis Lease Finance Corporation and Mitsui & Co., Ltd., secured a new $750 million, five-year revolving credit facility. This agreement, which is not recourse to the company or its subsidiaries, enhances WMES’s financial flexibility and supports its strategic growth initiatives. The credit facility, available until October 31, 2030, allows WMES to use the proceeds for general corporate purposes and potentially increase the aggregate commitments by an additional $250 million. This financial move follows WMES’s recent acquisition of Willis Mitsui & Co. Asset Management Limited, positioning the joint venture to capitalize on new opportunities with agility and strength.

Willis Lease Finance to Release Q3 2025 Results

On October 20, 2025, Willis Lease Finance Corporation announced it will release its third-quarter 2025 financial results before the market opens on November 4, 2025. A conference call led by the executive management team will follow at 10:00 a.m. Eastern Time to discuss these results. This announcement is part of the company’s ongoing communication with stakeholders and reflects its commitment to transparency in financial reporting.

Willis Lease Finance Appoints New Global Head

On October 8, 2025, Willis Lease Finance Corporation announced a new employment agreement with Brian R. Hole, appointing him as the Global Head of Managed Funds and Credit. The agreement outlines his compensation package, including an annual base salary of $696,892 and a target annual bonus opportunity of up to 90% of his salary, effective January 1, 2026. This strategic appointment is expected to enhance the company’s management of third-party capital and strengthen its market position.