Key Highlights

  • Diluted EPS of USD 0.47 missed the consensus estimate of USD 1.07 and fell from USD 1.08 a year earlier.
  • Record total Revenue of USD 246.3 million rose 34.3% and topped the consensus estimate of USD 170.43 million.
  • Spare parts and equipment sales rose to USD 98.1 million from USD 5.4 million, led by five aircraft sales.
  • Adjusted EBITDA fell to USD 100.9 million from USD 135.0 million, while record income from investments reached USD 7.3 million.

Willis Lease Finance Corporation (NASDAQ:WLFC) reported third quarter 2026 total revenue of USD 246.3 million, up 34.3% from USD 183.4 million a year earlier and well above the consensus estimate of USD 170.43 million. Diluted Earnings per Share were USD 0.47 against a consensus estimate of USD 1.07, and compared with USD 1.08 in the third quarter of 2025. Net Income attributable to common shareholders fell 55.3% to USD 10.2 million.

Lease rent revenue reached a record USD 84.4 million, up 10.2%, which the company tied to a larger average portfolio and a strong lease rate factor. Income from operations fell to USD 11.5 million from USD 38.0 million, as cost of spare parts and equipment sales rose USD 84.4 million and technical expense rose to USD 13.5 million from USD 8.4 million.

Equipment Sales Lift Revenue While Maintenance Income Drops

Spare parts and equipment sales rose by USD 92.7 million to USD 98.1 million, driven by USD 89.1 million of equipment sales from five aircraft, two engines and one airframe. The aircraft were acquired in the WNG Acquisition and sold to the Willis Mitsui joint venture, with the company acting in a Warehouse capacity. Cost of spare parts and equipment sales rose to USD 91.1 million from USD 6.7 million.

Maintenance reserve revenue fell 48.3% to USD 39.3 million. Long term maintenance revenue was USD 2.6 million against USD 29.5 million, and short term maintenance revenue from non-reimbursable usage fees was USD 36.8 million against USD 46.6 million. Gain on sale of leased equipment was USD 5.5 million against USD 16.1 million, while maintenance services revenue rose 208.5% to USD 11.2 million and management and advisory fees rose 140.0% to USD 4.5 million.

Management Priorities and Portfolio Position

Chief Executive Officer Austin Willis said the company spent the year launching Willis Aviation Capital and growing Assets under management, and is now refocusing on growing the whole platform, including its balance sheet. He said the company anticipates profits in its core leasing Business to accelerate as it realizes economies of scale.

Assets under management, including joint ventures, third party managed assets and managed funds, were USD 4.9 billion at September 30, 2026, with the owned lease asset Book Value at USD 4,174.2 million. The operating lease portfolio held 341 engines, 31 aircraft and one marine vessel, against 363 engines and 20 aircraft at year end 2025.

Debt, Cash and Adjusted EBITDA Against Prior Periods

Debt obligations stood at USD 2.525 billion against USD 2.700 billion at year end 2025, while cash was USD 11.1 million against USD 16.4 million and restricted cash was USD 122.6 million against USD 530.5 million. Third quarter Adjusted EBITDA of USD 100.9 million compares with USD 135.0 million a year earlier, and the nine month figure of USD 345.5 million compares with USD 354.4 million. Interest expense was USD 32.2 million against USD 34.2 million, and maintenance reserves rose to USD 201.7 million from USD 116.2 million.