2025 Highlights (All metrics compared to 2024, except if noted)
- Record high annual total revenue of
$730.2 million , an increase of 28.3% - Record high pre-tax income of
$160.6 million , an increase of 5.2% - Record high lease rent revenue of
$291.6 million , an increase of 22.4% - Record high maintenance reserve revenue of
$232.0 million , an increase of 8.4% - Record high spare parts and equipment sales of
$95.5 million , an increase of 252.3% - Record high gain on sale of leased equipment of
$54.0 million , an increase of 19.9% - Record high net income attributable to common shareholders of
$108.1 million , an increase of 3.5% - Adjusted EBITDA of
$459.1 million , an increase of 16.6% - Average portfolio utilization increased to 84.9% for 2025, compared to 82.9%
Total revenue was
“Our 2025 results were strong,” said
2025 Operating Results
Lease rent revenue increased by
Maintenance reserve revenue increased by
Spare parts and equipment sales for 2025 increased by
Gain on sale of leased equipment was
The book value of lease assets owned either directly or through WLFC’s joint ventures, inclusive of the Company’s equipment held for operating lease, maintenance rights, notes receivable, and investments in sales-type leases was
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA
We analyze our financial data to evaluate the health of our business and assess our performance. As appropriate, in addition to income or loss from operations under GAAP, we use Adjusted EBITDA, a non-GAAP financial measure, to evaluate our business. We believe that this non-GAAP financial measure provides meaningful supplemental information regarding our performance as it excludes certain items that may not be indicative of our recurring operating results. We also believe that investors, in addition to management, benefit from referring to this non-GAAP financial measure in assessing our performance, when viewed together with our GAAP results. While items excluded from Adjusted EBITDA may be recurring in nature and should not be disregarded in evaluating performance, it can be useful to exclude such items as they can vary significantly between periods and or not be indicative of current or future operating results.
Because non-GAAP financial measures are not standardized, our calculation of Adjusted EBITDA may differ from similarly titled non-GAAP measures, if any, reported by other companies. This non-GAAP financial measure should not be considered in insolation from, or as a substitute for, financial information performed in accordance with GAAP.
We define Adjusted EBITDA as net income attributable to common shareholders, excluding (i) income tax expense, (ii) interest expense, (iii) preferred stock dividends/costs, (iv) loss on debt extinguishment, (v) depreciation and amortization expense, (vi) stock compensation expense, (vii) write-down of equipment, (viii) acquisition, financing and divestitures related expenses, and (ix) other items not indicative of our ongoing operating performance.
Adjusted EBITDA was approximately
| Year Ended December 31, | ||||||
| 2025 | 2024 | |||||
| (in thousands) | ||||||
| Net income attributable to common shareholders | $ | 108,066 | $ | 104,378 | ||
| Add: Income tax expense | 46,849 | 44,033 | ||||
| Add: Interest expense | 132,060 | 104,764 | ||||
| Add: Preferred stock dividends/costs | 5,692 | 4,234 | ||||
| Add: Loss on debt extinguishment | 3,081 | — | ||||
| Add: Depreciation and amortization expense | 111,553 | 92,460 | ||||
| Add: Stock compensation expense (1) | 44,566 | 29,247 | ||||
| Add: Write-down of equipment | 32,947 | 11,228 | ||||
| Add: Acquisition, financing and divestitures related expenses | 3,495 | 1,449 | ||||
| (Less) Add: Other (2) | (29,197 | ) | 1,881 | |||
| Adjusted EBITDA | $ | 459,112 | $ | 393,674 | ||
________________________________________________________
- In 2025, upon the resignation of our former General Counsel,
$5.3 million of stock compensation expense relates to the acceleration of vesting of shares. - In 2025, the Company recognized
$43.0 million in relation to the gain on sale of theBridgend Asset Management Limited business. In 2025 and 2024, the Company recognized$13.8 million and$1.9 million , respectively, in non-recurring project expenses associated with the sustainable aviation fuels project.
Balance Sheet
As of
Conference Call
WLFC plans to hold a conference call led by members of WLFC’s executive management team on
To participate in the conference call, please use the following dial-in numbers:
US and
International +1 (646) 307-1068
Conference ID 661343.
The conference call may also be accessed by registering via the following link:
https://event.webcasts.com/starthere.jsp?ei=1752912&tp_key=936d4d322e
A digital replay will be available two hours after the completion of the conference call. To access the replay, please visit the Investor Relations sections of our website at https://www.wlfc.global/investor-center.
by Willis, and
| CONTACT: | |
| Executive Vice President & Chief Financial Officer | |
| 561.413.0112 | |
Unaudited Consolidated Statements of Income
(In thousands, except per share data)
| Three Months Ended | Year Ended | ||||||||||||||||
| 2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||||||||
| REVENUE | |||||||||||||||||
| Lease rent revenue | $ | 75,074 | $ | 64,584 | 16.2 | % | $ | 291,633 | $ | 238,236 | 22.4 | % | |||||
| Maintenance reserve revenue | 50,324 | 57,381 | (12.3) | % | 231,980 | 213,908 | 8.4 | % | |||||||||
| Spare parts and equipment sales | 41,495 | 6,762 | 513.6 | % | 95,483 | 27,099 | 252.3 | % | |||||||||
| Interest revenue | 3,150 | 3,718 | (15.3) | % | 14,093 | 11,683 | 20.6 | % | |||||||||
| Gain on sale of leased equipment | 5,872 | 11,915 | (50.7) | % | 54,025 | 45,063 | 19.9 | % | |||||||||
| Gain on sale of financial assets | — | — | nm | 378 | — | nm | |||||||||||
| Maintenance services revenue | 8,239 | 6,202 | 32.8 | % | 25,492 | 24,158 | 5.5 | % | |||||||||
| Other revenue | 9,464 | 2,235 | 323.4 | % | 17,157 | 9,076 | 89.0 | % | |||||||||
| Total revenue | 193,618 | 152,797 | 26.7 | % | 730,241 | 569,223 | 28.3 | % | |||||||||
| EXPENSES | |||||||||||||||||
| Depreciation and amortization expense | 30,317 | 24,157 | 25.5 | % | 111,553 | 92,460 | 20.7 | % | |||||||||
| Cost of spare parts and equipment sales | 42,162 | 5,849 | 620.8 | % | 92,271 | 22,852 | 303.8 | % | |||||||||
| Cost of maintenance services | 8,833 | 6,823 | 29.5 | % | 27,918 | 24,470 | 14.1 | % | |||||||||
| Write-down of equipment | 9,179 | 10,362 | (11.4) | % | 32,947 | 11,228 | 193.4 | % | |||||||||
| General and administrative | 47,396 | 42,452 | 11.6 | % | 194,735 | 146,757 | 32.7 | % | |||||||||
| Technical expense | 9,294 | 4,370 | 112.7 | % | 31,384 | 22,294 | 40.8 | % | |||||||||
| Net finance costs: | |||||||||||||||||
| Interest expense | 32,220 | 29,386 | 9.6 | % | 132,060 | 104,764 | 26.1 | % | |||||||||
| Loss on debt extinguishment | 118 | — | nm | 3,081 | — | nm | |||||||||||
| Total net finance costs | 32,338 | 29,386 | 10.0 | % | 135,141 | 104,764 | 29.0 | % | |||||||||
| Total expenses | 179,519 | 123,399 | 45.5 | % | 625,949 | 424,825 | 47.3 | % | |||||||||
| Income from operations | 14,099 | 29,398 | (52.0) | % | 104,292 | 144,398 | (27.8) | % | |||||||||
| Gain on sale of business | — | — | nm | 42,950 | — | nm | |||||||||||
| Income from joint ventures | 3,740 | 992 | 277.0 | % | 13,365 | 8,247 | 62.1 | % | |||||||||
| Income before income taxes | 17,839 | 30,390 | (41.3) | % | 160,607 | 152,645 | 5.2 | % | |||||||||
| Income tax expense | 5,651 | 9,329 | (39.4) | % | 46,849 | 44,033 | 6.4 | % | |||||||||
| Net income | 12,188 | 21,061 | (42.1) | % | 113,758 | 108,612 | 4.7 | % | |||||||||
| Preferred stock dividends | 1,368 | 1,368 | — | % | 5,413 | 4,126 | 31.2 | % | |||||||||
| Accretion of preferred stock issuance costs | 70 | 69 | 1.4 | % | 279 | 108 | 158.3 | % | |||||||||
| Net income attributable to common shareholders | $ | 10,750 | $ | 19,624 | (45.2) | % | $ | 108,066 | $ | 104,378 | 3.5 | % | |||||
| Basic weighted average income per common share | $ | 1.58 | $ | 2.97 | $ | 16.00 | $ | 15.97 | |||||||||
| Diluted weighted average income per common share | $ | 1.52 | $ | 2.81 | $ | 15.39 | $ | 15.34 | |||||||||
| Basic weighted average common shares outstanding | 6,806 | 6,603 | 6,754 | 6,536 | |||||||||||||
| Diluted weighted average common shares outstanding | 7,057 | 6,983 | 7,020 | 6,804 | |||||||||||||
Unaudited Consolidated Balance Sheets
(In thousands, except per share data)
| ASSETS | |||||||
| Cash and cash equivalents | $ | 16,441 | $ | 9,110 | |||
| Restricted cash | 530,500 | 123,392 | |||||
| Equipment held for operating lease, less accumulated depreciation | 2,801,683 | 2,635,910 | |||||
| Maintenance rights | 30,632 | 31,134 | |||||
| Equipment held for sale | 20,509 | 12,269 | |||||
| Receivables, net | 35,717 | 38,291 | |||||
| Spare parts inventory | 56,577 | 72,150 | |||||
| Investments | 104,250 | 62,670 | |||||
| Property, equipment & furnishings, less accumulated depreciation | 73,835 | 48,061 | |||||
| Intangible assets, net | 271 | 2,929 | |||||
| Notes receivable, net | 139,945 | 183,629 | |||||
| Investments in sales-type leases, net | 16,595 | 21,606 | |||||
| Other assets | 109,360 | 56,045 | |||||
| Total assets | $ | 3,936,315 | $ | 3,297,196 | |||
| LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITY | |||||||
| Liabilities: | |||||||
| Accounts payable and accrued expenses | $ | 105,706 | $ | 75,983 | |||
| Deferred income taxes | 228,547 | 185,049 | |||||
| Debt obligations | 2,700,338 | 2,264,552 | |||||
| Maintenance reserves | 116,185 | 97,817 | |||||
| Security deposits | 24,651 | 23,424 | |||||
| Unearned revenue | 35,350 | 37,911 | |||||
| Total liabilities | 3,210,777 | 2,684,736 | |||||
| Redeemable preferred stock ( | 63,401 | 63,122 | |||||
| Shareholders’ equity: | |||||||
| Common stock ( | 76 | 72 | |||||
| Paid-in capital in excess of par | 72,663 | 50,928 | |||||
| Retained earnings | 590,785 | 491,439 | |||||
| Accumulated other comprehensive (loss) income, net of tax | (1,387 | ) | 6,899 | ||||
| Total shareholders’ equity | 662,137 | 549,338 | |||||
| Total liabilities, redeemable preferred stock and shareholders’ equity | $ | 3,936,315 | $ | 3,297,196 | |||
