Willis Lease Finance Corp. (WLFC)
NASDAQ:WLFC
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Willis Lease Finance
(NASDAQ:WLFC)
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Rating:64Neutral
Price Target:
$215.00
▲(78.39% Upside)
Action:ReiteratedDate:04/01/26
WLFC scores as moderately attractive: improved profitability and an inexpensive earnings multiple are key positives, reinforced by a constructive earnings-call outlook and liquidity-supportive financing updates. The main constraints are weaker technical momentum and fundamental risk from leverage, volatile/negative free cash flow, and some data confidence issues in the latest reported figures.
Positive Factors
Willis Aviation Capital launch
Launching Willis Aviation Capital and partnering with Liberty Mutual and Blackstone creates fee-bearing AUM and third-party capital channels. Structurally this diversifies revenue away from pure leasing, lowers on-balance-sheet capital intensity over time, and builds recurring management fees and carried interest.
Negative Factors
High historical leverage
An asset‑intensive leasing model combined with historically high leverage raises refinancing and downturn vulnerability. Conflicting recent debt reporting increases transparency risk and complicates assessing covenant headroom, which can constrain strategic flexibility and make funding more costly during market stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Willis Aviation Capital launch
Launching Willis Aviation Capital and partnering with Liberty Mutual and Blackstone creates fee-bearing AUM and third-party capital channels. Structurally this diversifies revenue away from pure leasing, lowers on-balance-sheet capital intensity over time, and builds recurring management fees and carried interest.
Read all positive factors
Willis Lease Finance (WLFC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.38B
Dividend Yield0.82%
Average Volume (3M)46.79K
Price to Earnings (P/E)8.1
Beta (1Y)1.52
Revenue Growth27.90%
EPS Growth19.25%
CountryUS
Employees445
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)1.52
Shares Outstanding6,786,392
10 Day Avg. Volume53,309
30 Day Avg. Volume46,787
Financial Highlights & Ratios
PEG Ratio42.87
Price to Book (P/B)1.26
Price to Sales (P/S)1.36
P/FCF Ratio-3.80
Enterprise Value/Market Cap2.96
Enterprise Value/Revenue5.66
Enterprise Value/Gross Profit7.88
Enterprise Value/Ebitda10.15
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)14.71
Revenue Forecast (FY)$643.00M
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 aero...
How the Company Makes Money
WLFC primarily makes money through the leasing and monetization of aircraft engines and related aviation assets. Its key revenue streams typically include: (1) Lease revenue from renting spare commercial aircraft engines to airlines and other oper...
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 Earnings Call Summary
Earnings Call Date:Mar 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial story: record revenues, record EBT, strong adjusted EBITDA growth, improved utilization, larger portfolio, expanded fee-generating businesses and the launch of Willis Aviation Capital with major partnerships. These highlights outweigh a set of manageable headwinds — increased impairments, higher G&A and finance costs, lumpy maintenance reserve timing, low margins in certain services while they scale, and some operational risks (grounded GTFs and LEAP issues). Management emphasized cash generation, portfolio value upside, returning capital to shareholders and strategic fund initiatives that should diversify and expand earnings over time.Positive Updates
Record Quarterly and Annual Revenues
Q4 revenue of $193.6 million, up 27% year-over-year; full-year revenue of $730.2 million, up ~28.3% from 2024.
Negative Updates
Increased Equipment Write-Downs and Impairments
Write-down of equipment was $32.9 million in 2025 versus $11.2 million in 2024; $41.5 million of asset transfers into held for sale and other impairment-related adjustments noted.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarterly and Annual Revenues
Q4 revenue of $193.6 million, up 27% year-over-year; full-year revenue of $730.2 million, up ~28.3% from 2024.
Read all positive updates
Company Guidance
Management guided that Willis will begin deploying capital into Willis Aviation Capital’s two “funds of one” — a $600 million Liberty Mutual loan/loan‑like fund and a $1 billion+ Blackstone operating‑lease fund — to expand assets under management, fee revenue and carried interest (other revenue was $17.2M in 2025) while complementing its $3.0B year‑end owned portfolio; they expect to finance transactions with ABS and similar structures (2025 capital activity ~ $3.4B, including $596M WEST VIII and $392.9M WEST IX) and to seed the funds with a small portfolio of assets. Management reiterated a bullish demand outlook with shop visits expected to remain strong through the mid‑2030s, portfolio utilization averaging 85% (vs. 83% in 2024), an average lease rental factor >1%/month, maintenance reserve revenues of $232M (long‑term $44.5M; short‑term $187.5M), an estimated ~$700M maintenance‑adjusted market value excess over book, and ongoing opportunities for gains on equipment sales (2025 gain on sale $54M on $269.7M gross sales) and spare parts/equipment sales ($95.5M), while preserving shareholder returns via a recurring $0.40 quarterly dividend and maintaining leverage of 2.97x (down from 3.48x).Willis Lease Finance Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
56
Neutral
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 675.84M | 569.22M | 418.56M | 311.93M | 274.20M |
| Gross Profit | 444.10M | 429.44M | 291.26M | 202.83M | 168.77M |
| EBITDA | 329.53M | 352.62M | 236.85M | 164.80M | 167.63M |
| Net Income | 113.76M | 108.61M | 43.78M | 5.44M | 3.35M |
Balance Sheet | |||||
| Total Assets | 4.03B | 3.30B | 2.65B | 2.58B | 2.46B |
| Cash, Cash Equivalents and Short-Term Investments | 16.44M | 9.11M | 7.07M | 12.15M | 14.33M |
| Total Debt | 2.71B | 2.26B | 1.80B | 1.85B | 1.79B |
| Total Liabilities | 3.31B | 2.75B | 2.21B | 2.17B | 2.09B |
| Stockholders Equity | 725.54M | 549.34M | 438.96M | 404.69M | 375.88M |
Cash Flow | |||||
| Free Cash Flow | -241.34M | -546.07M | 60.96M | -148.60M | -117.29M |
| Operating Cash Flow | 283.24M | 284.41M | 229.74M | 144.42M | 90.66M |
| Investing Cash Flow | -256.40M | -764.91M | -92.78M | -194.38M | -148.00M |
| Financing Cash Flow | 387.60M | 444.98M | -57.94M | 43.33M | 74.05M |
Willis Lease Finance Technical Analysis
Positive
120.52
Price Trends
186.14
Positive
164.25
Positive
151.88
Positive
Market Momentum
3.28
Negative
69.44
Neutral
97.09
Negative
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 175.95, below the 50-day MA of 186.14, and below the 200-day MA of 151.88, indicating a bullish trend. The MACD of 3.28 indicates Negative momentum. The RSI at 69.44 is Neutral, neither overbought nor oversold. The STOCH value of 97.09 is Negative, 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 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $7.28B | 9.92 | 13.23% | 1.37% | 9.67% | 96.43% | |
68 Neutral | $24.29B | 6.60 | 20.95% | 0.74% | 2.90% | 67.73% | |
64 Neutral | $1.38B | 8.05 | 16.94% | 0.82% | 27.90% | 19.25% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $8.63B | 16.03 | 16.36% | 1.75% | 1.68% | 9.91% | |
51 Neutral | $10.58B | -5.08 | 32.05% | ― | -1.22% | -639.34% | |
51 Neutral | $1.97B | -2.13 | 193.77% | ― | -7.36% | 62.27% |
* Industrials Sector Average
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Willis Lease Finance Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Willis Lease Finance Ends Key Credit Facility Agreement
Negative
Mar 31, 2026
On March 26, 2026, Willis Warehouse Facility LLC, a wholly owned subsidiary of Willis Lease Finance Corporation, entered into an agreement to terminate a credit agreement originally dated May 3, 2024, with Bank of America as facility agent, Bank o...
Business Operations and StrategyPrivate Placements and Financing
Willis Lease Finance Expands and Extends Credit Facility
Positive
Mar 30, 2026
On March 27, 2026, Willis Lease Finance Corporation amended and extended its revolving credit facility, boosting total lender commitments from $1.0 billion to $1.75 billion and pushing the facility’s maturity out to April 2031. The company r...
Business Operations and StrategyFinancial Disclosures
Willis Lease Finance Announces Record 2025 Financial Results
Positive
Mar 10, 2026
On March 10, 2026, Willis Lease Finance Corporation reported record results for the year ended December 31, 2025, with total revenue rising 28.3% to $730.2 million and pre-tax income increasing 5.2% to $160.6 million. The company also posted recor...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Willis Lease Finance Amends Credit Agreement to Adjust Leverage
Positive
Feb 24, 2026
On February 19, 2026, Willis Lease Finance Corporation and its guarantors executed a second amendment to their existing credit agreement with Bank of America, N.A., acting as administrative agent. The amendment modifies the way “Total Debt&#...
Financial Disclosures
Willis Lease Finance Schedules Q4 and 2025 Results Call
Neutral
Feb 10, 2026
Willis Lease Finance Corporation, a global lessor of spare commercial aircraft engines and aircraft with complementary trading, asset management, maintenance and end-of-life services, supports airlines, engine manufacturers and MRO providers acros...
Business Operations and StrategyProduct-Related Announcements
Willis Lease Finance Launches CFM56 Engine Life Extension Program
Positive
Feb 9, 2026
On February 9, 2026, Willis Lease Finance Corporation announced an industry‑first program developed with CFM International to extend the operational life of CFM56‑5B and CFM56‑7B engines, key powerplants for many single‑ais...
Business Operations and StrategyDividendsFinancial Disclosures
Willis Lease Finance Declares Quarterly Dividend, Signals Confidence
Positive
Jan 20, 2026
On January 16, 2026, Willis Lease Finance Corporation’s board declared a quarterly cash dividend of $0.40 per share on its common stock, to be paid on February 20, 2026 to shareholders of record as of February 11, 2026. The announcement, rea...
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.