Contradictions Uncovered: Tariffs, Lease Rates, and Demand Dynamics in 2025 Q2 Earnings Call

Record Revenue and Growth:
- Willis Lease Finance Corporation reported record revenue of $195.5 million for Q2 2025, an increase of 29.4% over the same period last year.
- The growth was driven by strong demand for leasing, parts, and maintenance solutions due to the high cost of new engines and the appeal of leasing as an attractive alternative.

Lease and Maintenance Reserve Revenue Trends:
- Core lease rent revenue for the quarter was $72.3 million, up 29.4% from the prior comparable period. Maintenance reserve revenues were $50.7 million, with $50.2 million coming from short-term conditions, up 9.5%.
- The increases were due to higher utilization rates (88.3% at the end of the quarter) and a growing portfolio of current-generation engines.

Acquisitions and Sales:
- Willis Lease purchased or sold 31 engines and 4 airframes during the quarter and completed its largest-ever engine ABS.
- The activity was driven by strategic initiatives to expand the business and achieve further growth and value creation.

Dividend and Financial Performance:
- The company declared its fifth consecutive regular quarterly dividend of $0.25 per share.
- The solid financial performance, with record EBT and net income, benefited from strong core lease rent and maintenance reserve revenues, as well as the sale of the Bridgend Asset Management consultancy business.