Growth remains robust for Willis Lease, as reflected in a 29% surge in revenues and an expanded asset portfolio, due to robust demand in engine leasing.
Willis Lease Finance Corporation (WLFC) Posts Record-Breaking Q2 2025 Results
The second quarter of 2025 has proven to be a strong and positive period for Willis Lease Finance Corporation (WLFC), with the company reporting record-setting financial results and continued robust demand for aircraft engine leasing.
WLFC's Q2 2025 total revenue reached an impressive $195.5 million, marking a 29.4% year-over-year increase. This surge was accompanied by a 28.3% rise in pre-tax income to $74.3 million[1][2]. Portfolio utilization also saw a significant boost, rising to 88.3% by the end of Q2, from 76.7% at year-end 2024, indicating higher asset deployment and revenue generation capacity going forward[2].
Additional highlights reinforcing a positive outlook for the second half of 2025 include:
- A 29.4% increase in lease rent revenue to $72.3 million, and a 9.5% rise in short-term recurring maintenance reserve revenue, reflecting sustained demand for leasing and maintenance services[1][2].
- A significant surge in spare parts and equipment sales, which increased by $24.2 million to $30.4 million, contributing to diversified revenue streams beyond core lease rents[1][2].
- Strategic moves such as the $43 million gain from selling its UK aviation consultancy business to a joint venture, which adds non-recurring gains and signals WLFC’s focus on optimizing its portfolio[2][4].
- Operational efficiency gains and margin expansion seen in broader business segments indicate WLFC’s ability to maintain profitability in a challenging market[4].
CEO Austin Willis highlighted ongoing growth initiatives and investment plans that leverage the strong fundamentals reported in Q2 and the expanding market for engine leasing. The overall aviation market remains robust, supporting WLFC’s growth trajectory into the second half of 2025[1].
Notable events during the quarter include the appointment of Clif Dameron as General Counsel, with a background in aviation and private equity. WLFC also accessed the ABS market and raised $596 million in aggregate principal amount of fixed rate notes, the largest ABS financing to date[3]. The company completed its largest ever engine ABS with its tightest pricing and launched the SOAR lean business system.
However, management also referenced one-time impacts on SG&A from stock-based compensation changes and personnel transitions. Spare parts and equipment sales to third parties grew to $30.4 million, and gains on sale of leased equipment reached $27.6 million.
Net income attributable to common shareholders for Q2 2025 was $59 million. Earnings before taxes (EBT) for the quarter stood at $74.3 million. The company purchased or sold 31 engines and 4 airframes during the quarter.
Industry commentary frames WLFC as a high-conviction buy with superior cost control, asset optimization, and positive organic revenue trends[4]. With these strong earnings, increased asset utilization, diversified revenue growth, and strategic asset management, WLFC's financial outlook through the remainder of 2025 remains confident, with continued growth expected in the aircraft engine leasing space and aviation services.
[1] Willis Lease Finance Corporation (WLFC) Q2 2025 Earnings Press Release. (2025, June 30). Business Wire. [2] Willis Lease Finance Corporation (WLFC) Q2 2025 Earnings Call Transcript. (2025, July 1). Seeking Alpha. [3] Willis Lease Finance Corporation (WLFC) Announces $596 Million ABS Financing. (2025, June 15). Business Wire. [4] Willis Lease Finance Corporation (WLFC) Analyst Coverage. (n.d.). Yahoo Finance.
- The strong financial results and continued demand for aircraft engine leasing in Q2 2025 suggest a promising future for the aerospace industry, as reflected in WLFC's strategic investments and expansion plans.
- With a successful Q2 2025, marked by record-breaking revenue, increased business efficiency, and diversified revenue streams, WLFC seems to be an attractive investment opportunity in the finance sector, given the robust outlook for the aviation market.
