COCONUT CREEK, Fla., May 6, 2025 – Willis Lease Finance Corporation (NASDAQ: WLFC), a leading provider of aircraft engine leasing and aviation services, today announced its financial results for the first quarter of 2025, ending March 31. The company also declared a quarterly dividend of $0.25 per share, payable on May 22, 2025, to shareholders of record as of May 12, 2025.
First Quarter Highlights
- Total revenue reached a record $157.7 million, up 32.5% from $119.1 million in Q1 2024.
- Pre-tax income for the quarter was $25.3 million.
- Lease rent revenue increased by 28.1%, totaling $67.7 million.
- Maintenance reserve revenue grew by 25.0%, reaching $54.9 million.
- Spare parts and equipment sales surged to $18.2 million, compared to $3.3 million a year ago.
- Portfolio utilization improved to 86.4%, up from 76.7% at the end of 2024.
The growth in revenue was driven primarily by increased lease and maintenance reserve revenues, reflecting a strong aviation market. Airlines continue to rely on Willis Lease for leasing, parts, and maintenance services, which help avoid expensive engine repairs.
“Our strong first-quarter results reflect the effectiveness of our business model, which allows us to offer efficient solutions to airlines,” said Austin C. Willis, CEO of Willis Lease. “Despite some market volatility due to tariffs, we remain confident in the continued demand for leasing and maintenance services, which provide value and cost certainty to airlines.”
Quarterly Performance Breakdown
- Maintenance reserve revenue for Q1 2025 was $54.9 million, up from $43.9 million in Q1 2024, driven by the growth of the lease portfolio.
- Short-term maintenance revenue from engines with non-reimbursable usage fees was $45.3 million, compared to $37.6 million in Q1 2024.
- Long-term maintenance revenue increased to $9.6 million, up from $6.3 million in the same period last year.
- Spare parts and equipment sales rose significantly to $18.2 million, largely due to increased demand for parts as airlines extend the lives of older engine models. This included a one-time $7.0 million sale. Equipment sales totaled $2.2 million in Q1 2025, compared to none in Q1 2024.
- The company reported a gain of $4.4 million from the sale of leased equipment, including seven engines and other parts, compared to $9.2 million in Q1 2024 from the sale of eight engines and related equipment.
Increased Costs Due to Strategic Investments
General and administrative expenses grew, largely due to an $11.4 million increase in consultant-related fees. These expenses are tied to Willis Lease’s sustainable aviation fuel project, which is still in its early stages. The company expensed these costs in line with GAAP standards.
Balance Sheet Overview
As of March 31, 2025, Willis Lease’s lease portfolio totaled $2.82 billion, consisting of:
- $2.60 billion in equipment held for operating leases,
- $179.3 million in notes receivable,
- $25.2 million in maintenance rights,
- $17.3 million in investments in sales-type leases.
The portfolio included 347 engines, 15 aircraft, one marine vessel, and other leased parts and equipment.
This compares to a total lease portfolio of $2.87 billion at the end of 2024, reflecting a slight reduction in asset values, primarily due to the sale of equipment during the quarter.
Willis Lease’s continued growth in revenue and portfolio utilization highlights its strong market position as airlines turn to leasing to meet operational demands. With its expanding services and strategic investments, the company remains well-positioned to capitalize on the ongoing strength in the aviation industry.
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