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- **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.


Willis Lease Finance Corporation (WLFC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

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Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

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Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

WLFC

WLFC fundamentals

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