Willis Lease Finance Corporation Reports $157.7 Million Revenue in Q1 2025, 32.5% Increase Year-Over-Year

Willis Lease Finance Corporation reported a total revenue of $157.7 million for the first quarter of 2025, marking a 32.5% increase from $119.1 million in the same period of 2024. The growth was driven by significant increases in lease rent revenue, which rose by 28.1% to $67.7 million, and maintenance reserve revenue, which increased by 25% to $54.9 million. Spare parts and equipment sales saw a remarkable surge of 454.7%, reaching $18.2 million, largely due to heightened demand for surplus materials as operators extend the lives of their engine portfolios. However, net income attributable to common shareholders decreased to $15.5 million, down from $20.0 million in the prior year, reflecting increased expenses and a higher effective tax rate.

The company's financial performance was impacted by a notable rise in total expenses, which increased by 45.7% to $133.8 million, compared to $91.9 million in the previous year. This rise was primarily attributed to a significant increase in general and administrative expenses, which surged by 61.3% to $47.7 million, largely due to consultant fees related to a sustainable aviation fuel project and increased personnel costs. Additionally, net finance costs rose by 39.5% to $32.1 million, driven by a higher level of debt obligations and increased borrowing costs.

Operationally, Willis Lease Finance Corporation maintained a portfolio of $2.6 billion in equipment held for operating leases as of March 31, 2025, a slight decrease from $2.6 billion at the end of 2024. The company managed 68 lessees across 38 countries, with an average utilization rate of approximately 80%. The company also reported a total of 282 engines and related equipment managed on behalf of other parties. The increase in spare parts sales and equipment sales reflects a strategic focus on expanding its service offerings and enhancing customer engagement.

In terms of strategic developments, the company entered into a joint venture with Global Engine Maintenance to establish an engine test facility in Florida, further diversifying its operational capabilities. Additionally, the company has committed to purchasing 30 new LEAP-1A engines and 21 LEAP-1B engines, with total commitments expected to reach approximately $912.6 million by 2030. The company also declared a quarterly dividend of $0.25 per share, reflecting its commitment to returning value to shareholders.

Looking ahead, Willis Lease Finance Corporation acknowledges the challenges posed by the current high interest rate and inflationary environment, which may impact its operations and financial condition. The company remains focused on evaluating its growth strategy and operational efficiencies to navigate these market conditions. Management anticipates that ongoing investments in its leasing portfolio and strategic partnerships will position the company for continued growth in the aviation leasing sector.