10-Q · May 5, 2026
Willis Lease Finance Corporation reported strong Q1 2026 results with revenue of $194.3 million, up 23.2% from the prior year, and EPS of $3.26, exceeding estimates. Increased revenue from leasing and maintenance…
Earnings analysis · 10-Q
WLFC earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Willis Lease Finance delivered Q2 revenue of $194.017 million, essentially flat year over year and modestly below the implied $194.346 million Q1 level, while operating margin expanded to an estimated 35.6%. EPS of…
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Willis Lease Finance delivered Q2 revenue of $194.017 million, essentially flat year over year and modestly below the implied $194.346 million Q1 level, while operating margin expanded to an estimated 35.6%. EPS of $1.31 improved sequentially from $1.09 but declined from $2.81 a year ago because the prior period included an approximately $43.0 million business-sale gain; the result also missed the $2.70 consensus estimate. Core lease-rent growth, asset-sale gains and new fund-management fees were constructive, but lower maintenance reserves, elevated asset investment, substantial debt and committed purchases temper the outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.31
- Operating margin
- 35.6%
What stood out
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Revenue broadly stable despite mix pressure
Q2 revenue was $194.017 million, down only 0.8% from $195.502 million a year earlier. Lease rent revenue grew 6.7% to $77.137 million and gains on sale of leased equipment rose 16.2% to $32.038 million, partly offset by a 30.2% decline in spare-parts and equipment sales.
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Operating margin expanded year over year
Operating income was approximately $69.0 million, implying a 35.6% operating margin, versus approximately $61.9 million and a 31.7% margin a year earlier. Q2 diluted EPS was $1.31, up from $1.09 in Q1 2026 but below $2.81 in Q2 2025.
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Adjusted EBITDA rose to $120.7 million
Adjusted EBITDA increased 4.0% to $120.737 million from $116.061 million. The increase occurred despite $5.421 million of loss on debt extinguishment and $4.910 million of equipment write-downs.
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Lease asset base expanded
The operating-lease portfolio reached $2.783 billion at June 30, 2026, up from $2.607 billion a year earlier. Lease-rent growth was attributed to the larger average portfolio, although quarterly average utilization declined to 85.0% from 87.2%.
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Cash generation funded heavy asset investment
First-half operating cash flow was $134.2 million, down 7.6% from $145.2 million. Equipment purchases were $401.9 million, or 103.5% of $388.363 million of first-half revenue, while equipment-sale proceeds totaled $302.8 million.
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Third-party fund fees became a growth driver
New fund activity supported fee income: management and advisory fees more than doubled to $5.524 million, driven principally by $2.8 million of fees from the LMI and BXCI funds, which began operations in March and April 2026.
What to watch
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EPS declined sharply on lapping business-sale gain
Net income attributable to common shareholders fell 51.2% to $28.745 million from $58.955 million, and diluted EPS fell to $1.31 from $2.81. The prior-year quarter included a roughly $43.0 million gain on the sale of the BAML business that did not recur.
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High leverage and floating-rate sensitivity
Debt obligations were $2.321 billion net of issuance costs at June 30, 2026, with $437.0 million at variable rates. Management estimates a 1% rate change would alter annual interest expense by $3.9 million, net of swaps.
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Large committed asset purchases require funding
The company has $1.394 billion of purchase obligations, including $782.0 million for 42 additional LEAP engines by 2030 and approximately $256.7 million for nine engines and four aircraft in 2026. It also recorded a $5.421 million quarterly loss on debt extinguishment from refinancing activities.
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Maintenance-revenue and utilization headwind
Quarterly maintenance-reserve revenue fell 8.4% to $46.456 million, as short-term maintenance revenue declined to $39.0 million from $50.2 million. Management identifies this revenue stream as a proxy for portfolio engine flight time.
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No formal risk-factor changes; concentration remains
Item 1A states there were no material changes to risk factors from the 2025 Form 10-K. Nonetheless, two customers each represented approximately 11% of Q2 lease-rent revenue, leaving meaningful customer concentration.
Management's outlook
The 10-Q provides no explicit quantitative revenue or EPS guidance. Management stated it believes its equity base, cash on hand, internally generated funds and existing debt facilities are sufficient to maintain operations for the next 12 months, while noting that growth could be constrained if additional capital is unavailable.
Earlier filings 4
10-K · March 10, 2026
Willis Lease positions itself as a specialist lessor and servicer of commercial aircraft engines and related parts, pursuing value via lease rent, maintenance reserves and management fees while vertically integrating…
10-Q · August 5, 2025
Willis Lease reported quarterly revenue of $195,502 (as filed) and diluted EPS of $8.43 for the three months ended June 30, 2025, driven by strong spare parts sales and gains on asset sales. Revenue and EPS rose versus…
10-Q · May 3, 2024
Willis Lease reported Q1 revenue of $119,083,000 (up from $89,535,000 in Q1 2023) and operating income of $27,218,000 (vs $7,998,000), driving diluted EPS of $3.00 (vs $0.55). Operating cash flow was $59,827,000, while…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.