Willis Lease (WLFC) Earnings Call Transcript

Image source: The Motley Fool.

Tuesday, Mar. 10, 2026 astatine 10 a.m. ET

• Chief Executive Officer — Austin Willis

• Chief Financial Officer — Scott B. Flaherty

Need a punctuation from a Motley Fool analyst? Email [email protected]

Austin Willis: Thank you, operator. And convey you each for joining america contiguous to sermon Willis Lease Finance Corporation's Fourth Quarter 2025 Financial Results. On our telephone today, I americium joined by Scott B. Flaherty, our Chief Financial Officer. I promote you to presumption our accompanying presumption illustrating details from our prepared remarks. We finished the twelvemonth with beardown performance, delivering grounds revenues for the 4th fourth of $193,600,000, a 27% summation twelvemonth implicit year.

For the afloat year, we achieved grounds revenues of $730,200,000, a 28% increase, and grounds net earlier taxation of $160,600,000, reflecting the increasing request for our products and services and the spot crossed the aviation market, arsenic our planetary hose partners proceed to trust upon Willis Lease Finance Corporation's leasing and services solutions to support their fleets operating reliably and outgo effectively. In summation to the gross numbers described above, I would similar to item our adjusted EBITDA of $459,000,000. We felt that highlighting EBITDA portion adjusting for selected items would springiness investors a look astatine the immense cash-generating capableness of our enterprise.

We saw beardown utilization of our lease portfolio passim the year, averaging 85%, up from 83% successful 2024, portion retaining an mean lease rental origin successful excess of 1% per month. Utilization is affected by engines that are successful maintenance, and engines that we support disconnected lease to enactment programs similar ConstantThrust. Our accordant concern show and assurance successful the spot of the aviation marketplace has enabled Willis Lease Finance Corporation to instrumentality superior to our shareholders. Accordingly, we precocious declared a recurring dividend of $0.40 per share, reflecting our continued committedness to delivering semipermanent full returns to our shareholders. The aviation marketplace has go engine-centric.

Engines are a captious constraint to some caller craft deliveries arsenic good arsenic maintaining an operational craft fleet. While determination is immoderate optimism astir improvements successful craft AOGs resulting from delays successful motor repairs, determination are inactive implicit 600 craft powered by GTF engines that stay grounded and caller method issues that person arisen astir LEAPs that endanger to necessitate further maintenance. The outlook for motor store visits remains beardown done the mid-2030s.