Willis Lease Finance (WLFC) AI Stock Analysis

• Market Cap: $820.29M
• Dividend Yield: 0.84%
• Average Volume (3M): 56.57K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 1.34
• 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: 66,358
• 30 Day Avg. Volume: 56,574
• 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: 3.77
• Enterprise Value/Revenue: 4.51
• Enterprise Value/Gross Profit: 5.87
• Enterprise Value/Ebitda: 7.46
• 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: 62 Neutral
• Price Target: $126.00 ▼(-2.74% Downside)

Willis Lease Finance's overall score is driven by strong earnings call performance and valuation, indicating potential undervaluation. However, financial performance concerns, particularly high leverage and negative cash flow, along with bearish technical indicators, weigh down the score.

Willis Lease Finance Business Overview & Revenue Model

Company Description

Willis Lease Finance Corporation operates as a lessor and servicer of commercial aircraft and aircraft engines worldwide. The company operates through two segments, Leasing and Related Operations, and Spare Parts Sales. The Leasing and Related Operations segment engages in acquiring and leasing commercial aircraft, aircraft engines, and other aircraft equipment, as well as the purchase and resale of commercial aircraft engines and other aircraft equipment, and other related businesses. The Spare Parts Sales segment purchases and resells after-market engine parts, whole engines, engine modules, and portable aircraft components. The company also focuses on engine management and consulting business. It serves commercial aircraft operators, as well as maintenance, repair, and overhaul organizations. As of December 31, 2021, it had a total lease portfolio of 304 engines, 12 aircraft, one marine vessel, and other leased parts and equipment, and with 76 lessees in 40 countries; and managed a total lease portfolio of 475 engines, aircraft, and related equipment for other parties. The company was founded in 1985 and is headquartered in Coconut Creek, Florida.

How the Company Makes Money

Willis Lease Finance generates revenue primarily through the leasing of aircraft engines and related services. The company earns income from long-term leases, which typically provide a steady stream of revenue over extended periods, as well as short-term leases that cater to immediate needs. Additionally, WLFC offers maintenance and support services, which are often bundled with leasing agreements, generating further revenue. The company benefits from its strategic partnerships with airlines and OEMs, enhancing its market presence and providing access to a broader customer base. Factors contributing to its earnings include the demand for leased aircraft engines, market conditions in the aviation industry, and the company's ability to manage and maintain its fleet efficiently.

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	415.13M	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	2.36B
Cash, Cash Equivalents and Short-Term Investments	170.97M	9.11M	7.07M	12.15M	14.33M	42.54M
Total Debt	2.24B	2.26B	1.80B	1.85B	1.79B	1.69B
Total Liabilities	2.71B	2.75B	2.21B	2.17B	2.09B	2.00B
Stockholders Equity	713.53M	549.34M	438.96M	404.69M	375.88M	364.01M
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: Negative
• Last Price: 129.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WLFC, the sentiment is Negative. The current price of 129.55 is above the 20-day moving average (MA) of 128.55, below the 50-day MA of 137.26, and below the 200-day MA of 151.19, indicating a bearish trend. The MACD of -4.24 indicates Positive momentum. The RSI at 33.42 is Neutral, neither overbought nor oversold. The STOCH value of 33.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WLFC.

Willis Lease Finance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AER	73 Outperform	$23.47B	6.15	21.71%	0.81%	2.90%	67.73%
AL	73 Outperform	$7.13B	7.40	12.74%	1.38%	9.67%	96.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WLFC	62 Neutral	$820.29M	7.20	18.91%	0.84%	27.90%	19.25%
R	61 Neutral	$6.84B	14.37	16.26%	1.97%	1.68%	9.91%
HTZ	49 Neutral	$1.93B	―	-567.03%	―	-7.36%	62.27%
CAR	41 Neutral	$5.04B	―	―	―	-1.22%	-639.34%

Willis Lease Finance Corporate Events

Willis Lease Finance Reports Strong Q3 Growth

The recent earnings call of Willis Lease Finance Corporation painted a picture of robust financial health and strategic growth, despite some operational challenges. The company reported significant revenue growth and record leasing revenues, underscoring a strong financial position. However, the call also highlighted increased general and administrative expenses, equipment write-downs, and a decline in spare parts sales. Despite these hurdles, the overall sentiment was positive, reflecting confidence in the company’s strategic direction and financial performance.

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.

The most recent analyst rating on (WLFC) stock is a Hold with a $135.00 price target. To see the full list of analyst forecasts on Willis Lease Finance stock, see the WLFC Stock Forecast page.

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.

The most recent analyst rating on (WLFC) stock is a Hold with a $160.00 price target. To see the full list of analyst forecasts on Willis Lease Finance stock, see the WLFC Stock Forecast page.

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.

The most recent analyst rating on (WLFC) stock is a Hold with a $160.00 price target. To see the full list of analyst forecasts on Willis Lease Finance stock, see the WLFC Stock Forecast page.

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.

The most recent analyst rating on (WLFC) stock is a Hold with a $160.00 price target. To see the full list of analyst forecasts on Willis Lease Finance stock, see the WLFC Stock Forecast page.

Willis Lease Finance Reports Record Q2 2025 Results

Willis Lease Finance Corporation is a prominent player in the aviation sector, specializing in leasing commercial aircraft engines and providing a range of aviation services globally. In its latest earnings report, Willis Lease Finance Corporation announced record-breaking financial results for the second quarter of 2025, with a pre-tax income of $74.3 million and total quarterly revenue reaching $195.5 million. This marks a significant 29.4% increase in revenue compared to the same period last year. Key financial highlights include a 29.4% rise in lease rent revenue to $72.3 million and a notable gain of $43.0 million from the sale of its aviation consultancy business. The company also reported a strong portfolio utilization rate of 88.3%, up from 76.7% at the end of 2024. Additionally, spare parts and equipment sales surged to $30.4 million, reflecting heightened demand in the aviation market. Looking ahead, Willis Lease Finance Corporation remains optimistic about its growth trajectory, supported by robust leasing and maintenance operations as well as strategic business decisions.

Willis Lease Finance Reports Record Revenue and Growth

The recent earnings call of Willis Lease Finance Corporation showcased a robust performance, marked by record revenue and increased net income. The sentiment was overwhelmingly positive, with the company achieving significant milestones such as successful strategic initiatives and government support for sustainability projects. Despite facing challenges like increased SG&A expenses and equipment write-downs, the overall outlook remains strong, buoyed by improved leverage ratios and continued dividend payouts.