Willis Lease Finance Posts Record Revenue, Lower Profit

The Tip Desk · November 3, 2026 · 3 min read

Third-quarter revenue reached a record $246.3 million, up 34.3%, as equipment sales of $89.1 million lifted the top line even as net income attributable to common shareholders fell to $10.2 million.

Willis Lease Finance Corporation (WLFC), the leading lessor of commercial aircraft engines and global provider of aviation services, reported record quarterly total revenue of $246.3 million for the three months ended September 30, 2026, up 34.3% from $183.4 million a year earlier.

The top-line record was driven by a large equipment-sales program rather than by the core lease book. Spare parts and equipment sales were $98.1 million, compared with $5.4 million a year earlier. Equipment sales of $89.1 million reflected five aircraft, two engines and one airframe; there were no equipment sales in the year-ago quarter. The company said the equipment sales primarily reflected five aircraft acquired in connection with the WNG Acquisition that it sold to its joint venture Willis Mitsui & Company Engine Support Limited, acting in a warehouse capacity. Spare parts sales were $9.1 million.

Lease rent revenue, the recurring core of the business, rose 10.2% to a record $84.4 million from $76.6 million a year earlier. The company attributed the increase to a larger average portfolio and a strong lease rate factor. Sequentially, lease rent revenue rose from $77.1 million in the second quarter, when it had increased 6.7% year over year.

Maintenance reserve revenue fell 48.3% to $39.3 million from $76.1 million a year earlier. Long-term maintenance revenue was $2.6 million, versus $29.5 million in the year-ago quarter, as maintenance reserves and end-of-lease payments for assets coming off lease with long-term conditions were higher in the prior comparable period. Engines on lease with non-reimbursable usage fees generated $36.8 million of short-term maintenance revenues, compared with $46.6 million a year earlier.

Maintenance services revenue rose 208.5% to $11.2 million from $3.6 million a year earlier. Management and advisory fees rose 140.0% to $4.5 million from $1.9 million. Income from investments rose 40.8% to a record $7.3 million from $5.2 million.

Profitability moved the other way. Income from operations fell 69.8% to $11.5 million from $38.0 million a year earlier. Net income attributable to common shareholders fell 55.3% to $10.2 million from $22.9 million, or $0.47 a share diluted, versus $1.08. Adjusted EBITDA was $100.9 million, versus $135.0 million a year earlier. Cost of spare parts and equipment sales was $91.1 million, versus $6.7 million a year earlier, tracking the equipment program.

The gain on sale of leased equipment was $5.5 million on eight engines and other parts, versus $16.1 million on 10 engines, one airframe and other parts a year earlier. Sequentially, that gain fell from $32.0 million in the second quarter, when 21 engines and other parts were sold.

The book value of lease assets owned directly or through joint ventures was $4,174.2 million as of September 30, 2026, up from $3,721.6 million as of June 30. Assets under management were $4.9 billion, up from $4.4 billion three months earlier. Equipment held for operating lease was $3,024.4 million, covering 341 engines and 31 aircraft, versus $2,801.7 million covering 363 engines and 20 aircraft as of December 31, 2025. Maintenance rights were $146.5 million.

Chief Executive Officer Austin Willis said that after a year-to-date focus on launching Willis Aviation Capital and growing assets under management, the company is refocusing on growing the entire Willis platform, inclusive of its balance sheet, and that it expects profits in the core leasing business to accelerate as it realizes economies of scale.