Willis Lease Finance Corporation (WLFC) is an international enterprise specializing in the leasing and maintenance of commercial aircraft and their engines. The ...
Willis Lease Finance Corporation is a specialized aviation asset owner, lessor, trader, and service provider focused primarily on commercial aircraft engines and related equipment. The company was founded in 1985 by Charles F. Willis, who pioneered the commercial jet-engine leasing business. Austin C. Willis became chief executive officer in April ...Willis Lease Finance Corporation is a specialized aviation asset owner, lessor, trader, and service provider focused primarily on commercial aircraft engines and related equipment. The company was founded in 1985 by Charles F. Willis, who pioneered the commercial jet-engine leasing business. Austin C. Willis became chief executive officer in April 2022, while Charles F. Willis has continued to be associated with the company as founder and executive chairman. WLFC is headquartered in Coconut Creek, Florida, and maintains operations and personnel across North America, Europe, and Asia.
The company operates mainly through two business areas. Its Leasing and Related Services segment acquires, owns, leases, manages, and resells commercial aircraft engines, aircraft, auxiliary power units, and other aviation assets. Leasing arrangements may be short-term or long-term and are intended to help airlines and other operators manage fleet requirements, engine shortages, maintenance events, and capital needs without purchasing every asset outright. The company also provides technical management, lease-management, consulting, and other aviation-support services. Its Spare Parts Sales segment sources and distributes used engine components, complete engines, modular engine units, and portable aircraft parts, serving customers that require replacement equipment or cost-effective maintenance solutions.
WLFC’s customers include commercial airlines, aircraft operators, original equipment manufacturers, and maintenance, repair, and overhaul organizations. The company’s asset portfolio and third-party managed assets provide exposure to global aviation utilization, engine maintenance cycles, aircraft deliveries, airline fleet transitions, and demand for spare engines. Based on the supplied company description, its owned portfolio included hundreds of engines, aircraft, a marine vessel, and other leased components, while it also managed a substantially larger collection of assets for third parties.
Financially, WLFC has an asset-intensive business model. It must commit substantial capital to aircraft engines and other equipment, which creates depreciation, financing, maintenance, refurbishment, and remarketing costs. The supplied trailing-twelve-month data indicates approximately $4.38 billion in market capitalization, a gross margin near 59.8%, an EBITDA margin near 40.9%, an EBIT margin near 25.4%, and a net profit margin near 12.0%. Return on equity was approximately 12.6%, while debt-to-equity was approximately 3.0 and debt-to-assets approximately 63.5%, reflecting meaningful use of secured and other financing to fund aviation assets. Capital expenditures were substantial, and reported free cash flow was negative, consistent with an asset-growth and fleet-investment strategy. WLFC’s principal opportunities include continued airline fleet expansion, constrained engine availability, maintenance demand, and growth in outsourced aviation asset management; key risks include airline credit quality, interest rates, residual-value changes, maintenance costs, asset concentration, leverage, and cyclical aviation demand.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$675.8M
+18.7%
-0.2%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$113.8M
+4.7%
+20.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+65.7%
-12.9%
-75.8%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+32.3%
+27.1%
-54.4%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+16.8%
-11.8%
+20.5%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-241.3M
+55.8%
+3541.6%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-35.7%
+62.8%
+3547.4%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
373.8%
-9.3%
-7.4%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
3.09x
-19.8%
-11.8%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day, and welcome to the Willis Lease Finance Corporation Q2 2026 Earnings Conference Call. Today's conference is being recorded. We would like to remind you that during this conference call, management will be making forward-looking statements, including statements regarding our expectations related to financial guidance, outlook for the company and our expected investment and growth initiatives. Please note that these forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect WLFC's views only as of today. They should not be relied upon as representative of views as of any subsequent date, and WLFC undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For further discussion of the material risks and other important factors that could affect WLFC's financial results, please refer to its filings with the SEC, including, without limitation, WLFC's most recently quarterly report on Form 10-Q, annual report on Form 10-K and other periodic reports, which are available on the Investor Relations section of WLFC's website at https://www.wlfc.global/investor-relations. At this time, I would like to turn the conference over to Mr. Austin Willis, CEO. Please go ahead.
Austin Willis: Thank you, operator, and thank you all for joining us today to discuss Willis Lease Finance Corporation's Second Quarter 2026 Financial results. On our call today, I am joined by Scott Flaherty, our Chief Financial Officer. I would like to also point you to the Investor Center section on our website, where we have posted a presentation to give further details supporting our prepared remarks, along with our earnings press release. We are pleased to have continued strong momentum from earlier in the year and are reporting another quarter of solid financial and operational performance. We continue to deliver on our strategy to grow assets under management and have increased this from roughly $3.6 billion in quarter 2 2025 to about $4.4 billion in quarter 2 2026. Furthermore, we delivered strong EBT performance of $38 million and an adjusted EBITDA of $120.7 million in an uncertain geopolitical environment. Before discussing our business segments, it's worth briefly touching on the broader operating environment. The macro environment has been dynamic in the second quarter and remains so. While geopolitical events, including the conflict in Iran, created some temporary market disruption, the underlying fundamentals of our business remain strong. As I will discuss later, one of the strengths of WLFC is our ability to perform across different market environments, supported by our integrated platform and the flexible solutions we …