Did Willis Lease Finance beat or miss consensus estimates last quarter?

What were the key takeaways from Willis Lease Finance’s earnings call?

What were the key takeaways from Willis Lease Finance's earnings call?

What does Willis Lease Finance do and what are its main business segments?

What is Willis Lease Finance's latest dividend and current dividend yield?

What is the market's earnings forecast for Willis Lease Finance next quarter?

What is Willis Lease Finance's gross profit margin?

What guidance did Willis Lease Finance's management provide for the next earnings period?

- **Revenue Surge**: Q3 2025 revenue up 25.4% YoY to $183.4 million, driven by leasing and aviation recovery.
- **Dividend Boost**: 7th consecutive dividend increased to $0.40 per share, signaling financial confidence.
- **Strategic Expansion**: $136.4M in new engine and aircraft acquisitions, including Air India and Dash 8-400 deals.
- **Utilization Excellence**: 86% engine utilization, with leasing revenue up 32% YoY.
- **Tax Headwinds**: 43.7% effective tax rate due to temporary tax law changes, expected to normalize.
- **SAF Ambitions**: Exploring third-party funding for 14,000-ton SAF plant, early-stage development.
- **Leverage Improvement**: Debt-to-equity ratio at 2.90x, down from 3.48x YoY, with strong cash flow.


**【CEO Summary Section】**
- **Revenue Growth**: Q3 2025 revenue reached $183.4 million, a 25.4% year-over-year increase, driven by core leasing and aviation market recovery.
- **Portfolio Expansion**: Acquired $136.4 million in engines and aircraft, including 12 engines from Air India Express and 6 Dash 8-400 aircraft.
- **Dividend Increase**: 7th consecutive quarterly dividend raised to $0.40 per share, reflecting confidence in business strength.
- **Leasing Performance**: Leasing, maintenance, and interest revenue totaled $156 million, up 32% YoY, with 86% engine utilization.
- **Strategic Initiatives**: Opened new Teesside maintenance hangar and hired Pascal Picano to enhance aircraft leasing capabilities. Investing in engine testing to avoid costly shop visits.

**【CFO Financial Commentary】**
- **Record Revenues**: Core lease rent ($76.6M, +17.9% YoY) and maintenance reserve ($76.1M, +52.8% YoY) drove EBT to $43.2 million (+25.4% YoY).
- **Cash Flow Strength**: Operating cash flow of $209.1 million, with leverage at 2.90x (down from 3.48x YoY).
- **Tax Considerations**: 43.7% effective tax rate due to Section 162(m) compensation and tax law changes, temporarily higher but expected to normalize.
- **Debt Management**: Reduced debt to $2.24 billion, with 89% fixed-rate and 5.11% weighted average cost.

**【Q&A Highlights】**
- **Write-Downs**: Sequential write-downs ($10.2M Q3) reflect engines moving to held-for-sale post-lease, part of portfolio recycling strategy.
- **G&A Expenses**: Q3 G&A at $49.2 million (+23% YoY) due to consulting fees, personnel costs, and share-based compensation.
- **SAF Project**: Seeking third-party funding for 14,000-ton SAF plant, in early development stages with conservative risk approach.
- **Share Repurchases**: Open to repurchases but prioritizing portfolio growth and shareholder value.


WLFC

WLFC fundamentals

You can ask Aime