$WLFC

WILLIS LEASE FINANCE CORP

CIK:0001018164|SEC Filings

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
REVENUE
Interest revenue	$ 1,183	$ 3,649	$ 3,971	$ 7,583
Gain on sale of leased equipment	32,038	27,582	49,997	32,019
Gain on sale of financial assets	154	0	592	378
Management and advisory fees	5,524	2,588	13,419	4,551
Total revenue	194,017	195,502	388,363	353,234
EXPENSES
Depreciation and amortization expense	29,068	27,550	59,246	52,574
Cost of spare parts and equipment sales	15,097	28,102	29,514	43,425
Cost of maintenance services	10,350	8,621	19,210	13,950
Write-down of equipment	4,910	11,458	6,059	13,567
General and administrative	55,559	50,429	112,163	98,149
Technical expense	9,947	7,508	19,635	13,738
Net finance costs:
Interest expense	29,689	33,569	62,322	65,663
Loss on debt extinguishment	5,421	0	12,448	0
Total net finance costs	35,110	33,569	74,770	65,663
Total expenses	160,041	167,237	320,597	301,066
Income from operations	33,976	28,265	67,766	52,168
Gain on sale of business	0	42,950	0	42,950
Income from investments	4,172	3,082	7,220	4,433
Income before income taxes	38,148	74,297	74,986	99,551
Income tax expense	7,828	13,920	19,583	22,305
Net income	30,320	60,377	55,403	77,246
Net income attributable to noncontrolling interests	152	0	152	0
Net income attributable to WLFC	30,168	60,377	55,251	77,246
Preferred stock dividends	1,353	1,353	2,706	2,676
Accretion of preferred stock issuance costs	70	69	139	139
Net income attributable to common shareholders	28,745	58,955	52,406	74,431
Net income attributable to common shareholders	$ 28,745	$ 58,955	$ 52,406	$ 74,431
Basic weighted average income per common share (in dollars per share)	$ 1.36	$ 2.89	$ 2.53	$ 3.70
Diluted weighted average income per common share (in dollars per share)	$ 1.31	$ 2.81	$ 2.39	$ 3.55
Basic weighted average common shares outstanding (in shares)	21,127	20,367	20,733	20,094
Diluted weighted average common shares outstanding (in shares)	22,013	20,970	21,885	20,985
Lease rent revenue
REVENUE
Lease rent and maintenance reserve revenue	$ 77,137	$ 72,268	$ 154,522	$ 140,007
Maintenance reserve revenue
REVENUE
Lease rent and maintenance reserve revenue	46,456	50,743	101,968	105,602
Spare parts and equipment sales
REVENUE
Other sales and revenue	21,180	30,354	42,867	48,594
Maintenance services revenue
REVENUE
Other sales and revenue	8,983	8,031	18,752	13,617
Other revenue
REVENUE
Other sales and revenue	$ 1,362	$ 287	$ 2,275	$ 883

Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

Cash flows from operating activities:

Net income

$ 55,403

$ 77,246

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization expense

59,246

52,574

Gain on sale of leased equipment

(49,997)

(32,019)

Stock-based compensation expense

26,455

23,658

Loss on debt extinguishment

12,448

Income from investments

(7,220)

(4,433)

Accretion of deferred costs and note discounts

6,390

5,033

Write-down of equipment

6,059

13,567

Payments received on sales-type leases

1,164

5,210

Gain on derivative instruments

(701)

Gain on sale of financial assets

(592)

(378)

(Gain) loss on disposal of property, equipment and furnishings

(23)

Allowances and provisions

(169)

Gain on sale of business

(42,950)

Amortization of contract asset

1,497

Deferred income taxes

18,367

20,733

Changes in assets and liabilities:

Receivables

(5,706)

(828)

Inventory

10,918

8,852

Other assets

4,682

890

Due from affiliates

(3,188)

Accounts payable and accrued expenses

(11,246)

(1,325)

Maintenance reserves

13,194

21,315

Security deposits

(114)

280

Unearned revenue

(2,246)

(3,607)

Due to affiliates

886

Net cash provided by operating activities

134,199

145,191

Cash flows from investing activities:

Purchase of equipment held for operating lease and for sale

(401,934)

(154,944)

Proceeds from sale of equipment (net of selling expenses)

302,836

141,949

Proceeds from sale of notes receivable (net of selling expenses)

88,371

Issuance of notes receivable

(42,484)

Purchase of investments and contributions to joint ventures

(39,586)

(1,770)

Proceeds from sale of investments in sales-type leases

15,513

Purchase of property, equipment and furnishings

(6,287)

(17,117)

Payments received on notes receivable

5,345

8,580

Proceeds from sale of business (net of cash and cash equivalents sold with business)

21,055

Net cash used in investing activities

(78,226)

(2,247)

Cash flows from financing activities:

Principal payments on debt obligations

(1,182,898)

(309,641)

Proceeds from debt obligations

803,000

851,051

Cancellation of restricted stock units in satisfaction of withholding tax

(27,914)

(18,714)

Debt issuance costs

(11,519)

(9,017)

Common stock cash dividends paid

(6,158)

(3,749)

Debt extinguishment payments

(4,834)

Preferred stock dividends

(2,706)

(2,973)

Contributions from non-controlling interest holders

2,115

Proceeds from shares issued under stock compensation plans

222

132

Net cash (used in) provided by financing activities

(430,692)

507,089

(Decrease) increase in cash, cash equivalents and restricted cash

(374,719)

650,033

Cash, cash equivalents and restricted cash at beginning of period

546,941

132,502

Cash, cash equivalents and restricted cash at end of period

172,222

782,535

Net cash paid for (refunded):

Interest

64,083

63,055

Income Taxes

(663)

3,429

Supplemental disclosures of non-cash activities:

Transfers from Equipment held for operating lease to Equipment held for sale

9,296

24,436

Transfers from Equipment held for operating lease to Spare parts inventory

738

311

Transfers from Equipment held for sale to Equipment held for operating lease

1,381

Transfers from Notes receivable to Equipment held for operating lease

1,863

Transfers from Notes receivable to Equipment held for sale

1,374

Contributions to joint ventures

22,500

Proceeds from sale of business

22,500

Additions to Equipment held for operating lease

^[1]

4,631

Accretion of preferred stock issuance costs

$ 139

[1]

During the six months ended June 30, 2025, the Company engaged in an exchange transaction with a third party in which the Company sold aircraft engines in exchange for aircraft engines. This transaction was accounted for under Accounting Standards Codification (“ASC”) 805 and ASC 845 and resulted in $4.6 million in non-cash additions to equipment held for operating lease for the associated total gain.

Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands

Jun. 30, 2026

Dec. 31, 2025

ASSETS

Cash and cash equivalents

$ 10,725

$ 16,441

Restricted cash

161,497

530,500

Equipment held for operating lease, less accumulated depreciation of $613,256 and $640,495 at June 30, 2026 and December 31, 2025, respectively

2,783,382

2,801,683

Maintenance rights

83,632

30,632

Equipment held for sale

77,002

20,509

Receivables, net of allowances of $944 and $868 at June 30, 2026 and December 31, 2025, respectively

41,365

35,717

Spare parts inventory

51,402

56,577

Investments

152,148

104,250

Intangible assets, net

8,295

271

Notes receivable, net of allowances of $101 and $140 at June 30, 2026 and December 31, 2025, respectively

89,279

139,945

Investments in sales-type leases, net of allowances of $0 and $17 at June 30, 2026 and December 31, 2025, respectively

16,595

Due from affiliates

3,188

Other assets

114,357

109,360

Total assets

^[1]

3,653,176

3,936,315

Liabilities:

Accounts payable and accrued expenses

103,306

105,706

Deferred income taxes

264,773

228,547

Debt obligations

2,320,904

2,700,338

Maintenance reserves

129,261

116,185

Security deposits

24,537

24,651

Unearned revenue

35,112

35,350

Due to affiliates

1,407

Total liabilities

^[2]

2,879,300

3,210,777

Redeemable preferred stock ($0.01 par value, 15,000 shares authorized; 9,750 shares issued at June 30, 2026 and December 31, 2025, respectively)

63,540

63,401

Shareholders’ equity:

Common stock ($0.01 par value, 60,000 shares authorized; 22,808 and 22,860 shares issued at June 30, 2026 and December 31, 2025, respectively)

228

229

Paid-in capital in excess of par

71,274

72,510

Retained earnings

637,033

590,785

Accumulated other comprehensive income (loss), net of income tax expense (benefit) of $18 and $(395) at June 30, 2026 and December 31, 2025, respectively

(1,387)

Total Willis Lease Finance Corporation (“WLFC”) shareholders’ equity

708,596

662,137

Noncontrolling interests

1,740

Total equity

710,336

662,137

Total liabilities, redeemable preferred stock and equity

3,653,176

3,936,315

Property, Equipment, and Furnishings

ASSETS

Property, equipment & furnishings, less accumulated depreciation of $30,959 and $27,869 at June 30, 2026 and December 31, 2025, respectively

$ 76,904

$ 73,835

[1]

Total assets at June 30, 2026 and December 31, 2025, include the following assets of variable interest entities (“VIEs”) that can only be used to settle the liabilities of the VIEs: Restricted cash $161,497 and $530,500; Equipment $1,752,419 and $1,892,356; Maintenance rights $18,801 and $19,502; Notes receivable $67,656 and $139,538; Investments in sales-type leases $0 and $15,774; and Other assets $9,640 and $9,759 (each respectively).

[2]

Total liabilities at June 30, 2026 and December 31, 2025, include the following liabilities of VIEs for which the VIEs’ creditors do not have recourse to Willis Lease Finance Corporation: Debt obligations $1,533,540 and $1,933,119, respectively. Further, refer to Note 6 of the Condensed Consolidated Financial Statements for details of the Company’s commitments and contingencies.