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Willis Lease Finance Corp. (WLFC)
NASDAQ:WLFC
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Willis Lease Finance (WLFC) AI Stock Analysis

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WLFC

Willis Lease Finance

(NASDAQ:WLFC)

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Neutral 66 (OpenAI - 4o)
Rating:66Neutral
Price Target:
$160.00
▲(13.28% Upside)
Willis Lease Finance's strong earnings performance and strategic achievements significantly boost its stock score. However, financial risks from high leverage and negative cash flow, along with bearish technical indicators, moderate the overall score.

Willis Lease Finance (WLFC) vs. SPDR S&P 500 ETF (SPY)

Willis Lease Finance Business Overview & Revenue Model

Company DescriptionWillis 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 MoneyWillis 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 Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance with record revenue and strategic achievements such as successful financial transactions and increased utilization. However, there were challenges in managing increased expenses and negative margins in maintenance services, as well as a decline in long-term maintenance reserve revenue. Overall, the highlights significantly outweighed the lowlights, reflecting a positive sentiment.
Q2-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
WLFC achieved its highest ever quarterly total revenue of $195.5 million, an increase of 29.4% over the same period last year.
Increased Utilization and Efficiency
Utilization increased from 82% in June last year to 88% at the end of June 2025, and there was an 85% reduction in time from engine acquisition to lease readiness.
Successful Financial Transactions
WLFC completed its largest ever engine ABS with the tightest pricing to date and conducted its sixth JOLCO financing.
Positive Developments in Tax and Tariffs
The U.S. and EU are moving towards a 0 tariff policy for aircraft parts, and changes in depreciation and interest treatment in the Big Beautiful Bill are expected to benefit WLFC.
Strong Earnings and Shareholder Returns
Net income attributable to common shareholders was $59 million for the quarter, up 41.5% from the previous year, with a declared quarterly dividend of $0.25 per share.
Negative Updates
Increased SG&A Expenses
SG&A increased by $15.7 million, largely due to personnel expenses and share-based compensation associated with the departure of the former General Counsel.
Negative Gross Margins in Maintenance Services
Maintenance services revenue increased to $8 million, but gross margins were negative 7% due to the build-out of the aircraft line and base maintenance business.
Decline in Long-term Maintenance Reserve Revenue
Long-term maintenance reserve revenue was only $0.5 million compared to $17 million in the comparable prior period, attributed to timing and lease extensions.
Company Guidance
During the Willis Lease Finance Corporation Q2 2025 earnings call, the company highlighted its record-setting quarter, achieving the highest ever quarterly total revenue of $195.5 million, which marks a 29.4% increase over the previous year. Earnings before taxes (EBT) reached $74.3 million, up 28.3%, while net income attributable to common shareholders soared 41.5% to $59 million. The company reported a lease rental factor of 1.01% and an increase in portfolio utilization from 82% in June last year to 88% in June 2025. Additionally, Willis Lease executed its largest engine asset-backed securitization to date and received over $6 million in grant proceeds from the U.K. government for its sustainable aviation fuel initiative. The company also highlighted its strategic initiatives, such as the sale of its consulting business to its joint venture with Mitsui & Company, which contributed a $43 million gain, and the implementation of its SOAR lean business system, which resulted in an 85% reduction in time from engine acquisition to lease readiness.

Willis Lease Finance Financial Statement Overview

Summary
Willis Lease Finance shows strong revenue growth and high gross profit margins, indicating efficient cost management. However, high leverage and negative free cash flow pose financial risks, impacting financial flexibility.
Income Statement
75
Positive
Willis Lease Finance shows a strong revenue growth rate of 9.5% TTM, indicating robust business expansion. The gross profit margin remains high at 68.6%, reflecting efficient cost management. However, the net profit margin has slightly decreased to 18.0% TTM from 19.1% in the previous year, suggesting some pressure on net profitability. The EBIT and EBITDA margins are solid at 41.0% and 56.5% TTM, respectively, though they have slightly declined from the previous year, indicating potential operational challenges.
Balance Sheet
60
Neutral
The company's debt-to-equity ratio is high at 4.11 TTM, indicating significant leverage, which could pose financial risks if not managed properly. Return on equity is strong at 20.6% TTM, showcasing effective use of equity to generate profits. The equity ratio is relatively low, suggesting a higher reliance on debt financing, which could impact financial stability in adverse conditions.
Cash Flow
50
Neutral
Willis Lease Finance's free cash flow is negative, with a significant decline of 28.9% TTM, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is slightly above 1, indicating that operating cash flow adequately covers net income. However, the negative free cash flow to net income ratio suggests challenges in converting profits into free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue678.15M569.22M407.97M305.68M250.39M288.69M
Gross Profit464.88M429.44M301.84M196.59M235.46M177.39M
EBITDA382.94M345.63M236.85M164.80M167.63M176.90M
Net Income122.40M108.61M43.78M5.44M3.35M9.75M
Balance Sheet
Total Assets3.95B3.30B2.65B2.58B2.46B2.36B
Cash, Cash Equivalents and Short-Term Investments782.53M9.11M7.07M12.15M14.33M42.54M
Total Debt2.80B2.26B1.80B1.85B1.79B1.69B
Total Liabilities3.27B2.75B2.16B2.17B2.09B2.00B
Stockholders Equity681.20M549.34M488.93M404.69M375.88M364.01M
Cash Flow
Free Cash Flow-392.19M-546.07M60.96M-148.60M-117.29M-318.78M
Operating Cash Flow299.94M284.41M229.74M144.42M90.66M93.44M
Investing Cash Flow-492.15M-764.91M-92.78M-194.38M-148.00M-506.67M
Financing Cash Flow826.83M444.98M-57.94M43.33M74.05M428.48M

Willis Lease Finance Technical Analysis

Technical Analysis Sentiment
Negative
Last Price141.24
Price Trends
50DMA
147.54
Negative
100DMA
143.28
Negative
200DMA
162.52
Negative
Market Momentum
MACD
-1.59
Positive
RSI
40.95
Neutral
STOCH
8.37
Positive
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 141.24 is below the 20-day moving average (MA) of 146.87, below the 50-day MA of 147.54, and below the 200-day MA of 162.52, indicating a bearish trend. The MACD of -1.59 indicates Positive momentum. The RSI at 40.95 is Neutral, neither overbought nor oversold. The STOCH value of 8.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
82
Outperform
$7.10B7.7111.89%1.39%8.08%76.55%
79
Outperform
$21.74B7.4612.21%0.86%3.24%4.46%
78
Outperform
$7.66B16.0316.46%1.78%3.68%6.61%
66
Neutral
$961.79M8.3919.97%0.71%30.08%32.62%
47
Neutral
$2.10B-0.82505.56%-7.58%-225.06%
44
Neutral
$5.68B-2.5580.95%-2.25%-395.93%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WLFC
Willis Lease Finance
141.24
-6.69
-4.52%
AER
Aercap Holdings
123.13
29.37
31.32%
AL
Air Lease
63.51
18.96
42.56%
CAR
Avis Budget
161.27
73.68
84.12%
R
Ryder System
187.74
44.84
31.38%
HTZ
Hertz Global
6.77
3.47
105.15%

Willis Lease Finance Corporate Events

Dividends
Willis Lease Finance Declares Quarterly Dividend
Positive
Jul 31, 2025

On July 30, 2025, Willis Lease Finance Corporation’s Board of Directors declared a quarterly dividend of $0.25 per share on its outstanding common stock, which is scheduled to be paid on August 21, 2025, to stockholders of record as of August 12, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may reinforce its market position by demonstrating financial stability and shareholder confidence.

Business Operations and StrategyPrivate Placements and Financing
Willis Lease Finance Amends Credit Agreement Terms
Positive
Jul 25, 2025

On July 22, 2025, Willis Warehouse Facility LLC, a subsidiary of Willis Lease Finance Corporation, amended its Secured Credit Agreement with several financial institutions, extending the availability period and final repayment date by one year each, to 2027 and 2030 respectively. The amendment also includes more favorable asset advance rates and reduced fees on undrawn loan commitments, potentially enhancing the company’s financial flexibility and operational efficiency.

Financial Disclosures
Willis Lease Finance Q2 2025 Earnings Announcement
Neutral
Jul 15, 2025

On July 15, 2025, Willis Lease Finance Corporation announced it will release its financial results for the second quarter of 2025 on August 5, 2025, before the market opens. The company will hold a conference call at 10:00 a.m. Eastern Time on the same day to discuss these results, which reflects its commitment to transparency and engagement with stakeholders.

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.Date of analysis: Sep 24, 2025