WLFCNasdaqWholesale-Machinery, Equipment & SuppliesUS GAAP · USD

Willis Lease Finance Corporation

Willis Lease Finance Corp. is a U.S.-based aviation asset company that acquires, leases, manages, and sells commercial aircraft engines, aircraft, and related equipment through its subsidiaries. Its business also includes engine management services and the sale of aircraft engine spare parts and materials, with operations and lessees spread across multiple countries.

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Revenue730m USD
+28.3 %y/y
Operating profit (EBIT)104m USD
−27.8 %y/y
EBIT margin14.3%
−11.1 ppy/y
Net income114m USD
+4.7 %y/y
Free cash flow252m USD
−6.2 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

0200400600800m USD2020: 289 m USD2020: EBIT 15 m USD20202021: 274 m USD2021: EBIT 8.3 m USD20212022: 312 m USD2022: EBIT 9.9 m USD20222023: 419 m USD2023: EBIT 64 m USD20232024: 569 m USD2024: EBIT 144 m USD20242025: 730 m USD2025: EBIT 104 m USD2025730104
RevenueOperating profit (EBIT)
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Business

Share of revenue
Engine and aircraft leasing75 %

Operating leases for commercial aircraft engines, aircraft, and related equipment.

Maintenance reserves and lease-related fees10 %

Lease-related income tied to engine use, maintenance, and asset management.

Engine management and consulting5 %

Third-party asset management and consulting for engines and related equipment.

Spare parts sales10 %

Sale of aircraft engine parts and materials through Willis Aero.

Customers

Customers are commercial airlines, aircraft operators, and maintenance, repair and overhaul providers that need engine capacity, short- or long-term lift, or parts support. The company also serves third-party asset owners that outsource engine management, and buyers of surplus engine parts and materials through its Willis Aero business. Demand is tied to fleet utilization, maintenance cycles, and the need for flexible access to engines and parts across the aviation aftermarket.

Commercial airlines

Lease engines and related equipment to cover maintenance, growth, and disruption needs.

Aircraft operators

Use leased engines and aircraft to maintain fleet flexibility and capacity.

MROs and repair facilities

Buy or lease engines, parts, and support services for maintenance activity.

Third-party asset owners

Outsource engine management and consulting to Willis Asset Management.

Aftermarket parts buyers

Purchase engine parts and materials from Willis Aero's spare-parts platform.

Strategy

The company focuses on acquiring popular commercial jet engines and managing them to maximize lease income and residual value over the asset life cycle. It also uses vertically integrated services, including parts sales and engine management, to extract additional value from leased assets and end-of-life equipment. Financing is structured around secured borrowing against the lease portfolio, which supports portfolio growth and asset rotation.

Grow and refresh the engine lease portfolioMedium term

A larger, newer portfolio supports lease rent and redeployment flexibility.

Monetize end-of-life assets and spare partsMedium term

Parts sales and tear-down activity improve value recovery from retired equipment.

Expand third-party asset managementMedium term

Management fees diversify revenue beyond direct leasing.

Use joint ventures to access regional demandLong term

Local partners can improve market access and customer reach.

Geography

Willis Lease Finance operates globally, with lessees in dozens of countries and assets that can be redeployed across international markets. The company also has joint ventures in Ireland and China, reflecting its participation in both global engine leasing and region-specific demand pools. Geography matters because aircraft engines are mobile assets, but customer credit, regulatory conditions, and demand for air travel vary by country and region.

Risks

The business is exposed to airline and MRO customer credit risk, because lease payments and parts demand depend on the financial health of aviation operators. Asset values can also move materially with engine supply-demand conditions, maintenance cycles, and the pace of aircraft retirements, while the company relies on secured borrowing and interest-rate hedging to fund its portfolio. Competition, tariffs, cybersecurity, and concentration in a small number of large customers add further operational and financial risk.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Customer industry cyclicality1Residual value and asset impairment risk2Interest rate and refinancing risk4Competition and vertical integration5Geopolitical and trade barriers6
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Customer industry cyclicalityImpact: HighLikelihood: High

    Airline and MRO demand is tied to air travel, cargo volumes, and financing conditions.

    Exposure: Commercial aviation operators and maintenance providers worldwide.

  2. Residual value and asset impairment riskImpact: HighLikelihood: Medium

    Engine and aircraft values depend on secondary-market demand and future leaseability.

    ExposureApplies to operating lease portfolioNotes receivableSales-type leases
  3. Customer concentrationImpact: High

    A small number of lessees can account for a meaningful share of lease rent and receivables.

    Exposure: One customer accounted for about 13% of lease rent revenue in 2025.

  4. Interest rate and refinancing riskImpact: MediumLikelihood: Medium

    Growth is funded largely with secured borrowings and floating-rate debt.

    Exposure: Lease portfolio financing and hedge counterparties.

  5. Competition and vertical integrationImpact: MediumLikelihood: Medium

    OEMs, lessors, and MROs can compete directly or move into aftermarket parts.

    ExposureEngine leasingParts salesMaintenance services
  6. Geopolitical and trade barriersImpact: MediumLikelihood: Medium

    Tariffs and trade restrictions can affect cross-border aviation asset flows.

    Exposure: International leasing and parts movement.

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Accounting

Judgemental items
Operating lease revenue recognition

Straight-line recognition affects timing of reported lease income.

Impact: Lease rent revenue

Residual value and impairment testing

Engine and aircraft values must be tested against market and cash-flow assumptions.

Impact: Equipment held for operating lease

Credit loss allowances

Customer financial stress can require higher provisions on receivables and notes.

Impact: Notes receivable and lease-related balances

Fair value estimates for parts and equipment

Spare parts and end-of-life assets rely on appraisal and market-sale assumptions.

Impact: Willis Aero inventory and asset write-downs

Joint venture accounting

Equity-method investments in WMES and CASC Willis affect reported earnings and assets.

Impact: Investment carrying values and equity income

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Last updated: 24/09/2026