Willis Lease Finance (NASDAQ:WLFC) Releases Earnings Results, Beats Expectations By $0.41 EPS

Willis Lease Finance (NASDAQ:WLFC) announced its quarterly earnings data on Tuesday. The transportation company reported $1.31 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.90 by $0.41, FiscalAI reports. Willis Lease Finance had a net margin of 11.80% and a return on equity of 14.33%. The firm had revenue of $194.02 million during the quarter, compared to analysts’ expectations of $175.00 million.

Here are the key takeaways from Willis Lease Finance’s conference call:

• Strong underlying quarterly performance: WLFC reported $194 million in revenue, $38.1 million in EBT, $28.7 million in net income attributable to common shareholders, and $1.31 in diluted EPS. Adjusted EBITDA increased 4% year over year to $120.7 million, although the prior-year EBT included a one-time $43 million gain.
• Assets under management grew substantially: AUM increased 21% year over year to approximately $4.4 billion, including 80% growth in Willis Aviation Capital to $1.4 billion. Management said roughly $1.3 billion remains available for deployment in discretionary funds, alongside revolver capacity and relatively low leverage of 2.78 times.
• Expansion and asset-management pipeline remain active: WLFC acquired three aircraft through special-purpose vehicles, agreed to acquire entities owning 12 aircraft and 13 engines, and reported strong institutional demand for its asset-management products. Management views the current funds as the foundation for larger future funds and expects balanced growth after completing most portfolio seeding.
• Some near-term operating metrics weakened: Average portfolio utilization declined to 85% from 87.2% a year earlier, while maintenance-reserve revenue fell to $46.5 million from $50.7 million, partly due to lower flying hours on older, less fuel-efficient engine platforms. General and administrative expense also rose to $55.6 million, driven in part by higher legal costs and strategic financing activity.
• Modern-engine positioning and services offer longer-term growth: Approximately 60% of the consolidated portfolio consists of newer technology engines such as LEAP, GTF, and GEnx, which management expects to generate increasing maintenance demand as scheduled removals accelerate. A new Pratt & Whitney engine-storage agreement and potential expansion of repair-center capacity in Asia further support the vertically integrated services strategy.

Willis Lease Finance Price Performance

NASDAQ WLFC traded up $0.61 on Thursday, reaching $65.82. The company had a trading volume of 59,862 shares, compared to its average volume of 276,912. The stock has a market capitalization of $1.39 billion, a PE ratio of 16.48 and a beta of 0.74. Willis Lease Finance has a 12 month low of $38.00 and a 12 month high of $81.54. The company has a quick ratio of 2.00, a current ratio of 2.43 and a debt-to-equity ratio of 3.25. The firm’s 50 day moving average price is $70.64 and its 200 day moving average price is $65.88.

Willis Lease Finance Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 21st. Shareholders of record on Tuesday, August 11th will be issued a $0.133 dividend. This represents a $0.53 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date is Tuesday, August 11th. Willis Lease Finance’s payout ratio is currently 9.65%.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on WLFC shares. Freedom Capital lowered Willis Lease Finance from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 6th. Weiss Ratings upgraded Willis Lease Finance from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, July 28th. One equities research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, Willis Lease Finance presently has a consensus rating of “Moderate Buy”.

Insider Activity at Willis Lease Finance

In other news, CEO Austin Chandler Willis sold 15,552 shares of the firm’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $74.69, for a total transaction of $1,161,578.88. Following the completion of the transaction, the chief executive officer owned 450,888 shares in the company, valued at $33,676,824.72. This trade represents a 3.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 53.32% of the stock is owned by company insiders.

Institutional Investors Weigh In On Willis Lease Finance

A number of hedge funds have recently made changes to their positions in the company. Invesco Ltd. grew its holdings in Willis Lease Finance by 24.7% during the 4th quarter. Invesco Ltd. now owns 5,199 shares of the transportation company’s stock valued at $705,000 after buying an additional 1,029 shares in the last quarter. Empowered Funds LLC raised its holdings in shares of Willis Lease Finance by 0.8% during the 4th quarter. Empowered Funds LLC now owns 27,889 shares of the transportation company’s stock worth $3,783,000 after acquiring an additional 208 shares in the last quarter. XTX Topco Ltd bought a new position in shares of Willis Lease Finance during the 4th quarter valued at approximately $354,000. Boothbay Fund Management LLC boosted its position in shares of Willis Lease Finance by 94.7% during the 4th quarter. Boothbay Fund Management LLC now owns 12,042 shares of the transportation company’s stock valued at $1,633,000 after acquiring an additional 5,858 shares during the last quarter. Finally, PDT Partners LLC purchased a new position in shares of Willis Lease Finance in the fourth quarter valued at $651,000. 93.70% of the stock is currently owned by hedge funds and other institutional investors.

About Willis Lease Finance

Willis Lease Finance Corporation (NASDAQ: WLFC) is an independent global provider of aircraft engine leasing, trading and aftermarket services. Founded in 1991 and headquartered in the United States, the company specializes in offering short- and long-term operating leases for jet engines and auxiliary power units. Through its broad engine portfolio, Willis Lease Finance supports a wide range of commercial aircraft across various operators, including major airlines, regional carriers and other leasing companies.

In addition to leasing solutions, Willis Lease Finance offers comprehensive engine trading and asset management services.