Shares of Willis Lease Finance Corporation (WLFC Quick QuoteWLFC - Free Report) have gained 8.1% since the company reported its earnings for the quarter ended June 30, 2025, outpacing the S&P 500 index’s 1% growth over the same period. Over the past month, WLFC shares have gained 6.3%, also exceeding the S&P 500’s 2.3% growth, signaling a strong post-earnings investor response.

The company delivered second-quarter 2025 EPS of $8.43 compared to $6.21 in the second quarter of 2024. 

WLFC’s total revenues of $195.5 million, up 29.4% from $151.1 million in the year-ago period, were driven by robust lease rent growth and surging spare parts and equipment sales. Lease rent revenue climbed 29.4% year over year to $72.3 million, while net income attributable to common shareholders jumped 41.5% to $59 million. Gains from the sale of leased equipment and the divestiture of its aviation consultancy unit also bolstered results.

Willis Lease Finance Corporation Price, Consensus and EPS Surprise

Willis Lease Finance Corporation price-consensus-eps-surprise-chart | Willis Lease Finance Corporation Quote

Other Key Business Metrics

Maintenance reserve revenues fell 19.3% year over year to $50.7 million due to timing differences and fewer engines coming off long-term leases.

However, recurring short-term maintenance reserve revenue rose 9.5%, reflecting higher engine utilization and contractual rate increases. Spare parts and equipment sales surged nearly 391% to $30.4 million, buoyed by one large engine sale and robust demand for surplus material as airlines extended the life of their existing fleets. The company’s portfolio utilization rate stood at 88.3% at quarter end, up from 76.7% at year-end 2024, highlighting improved asset deployment.

Management Commentary

CEO Austin C. Willis credited the record performance to a durable business model, rising lease rates, and strong demand for WLFC’s integrated maintenance and parts services. He noted that rising costs for new engines have made leasing a more attractive option for airlines seeking to avoid expensive shop visits. Management also emphasized the positive impact of the company’s SOAR operational efficiency program, which has reduced lead times and improved margins. CFO Scott B. Flaherty pointed out that higher equipment sales, stronger lease revenues, and a $43 million gain from the consultancy business sale were key drivers of the quarter’s profitability.

Factors Influencing the Headline Numbers

Revenue growth was supported by higher gross equipment sales, increased utilization, and robust demand for fixed asset trading, which generated a $27.6 million gain on the sale of leased equipment, up 91.2% from the prior-year quarter. However, expenses rose sharply, with general and administrative costs up 45.4% and technical expenses up 66.2%, partly due to higher engine repair activity and legal costs. Interest expense also climbed 36.7% on higher debt levels, reflecting expanded portfolio investments.

Write-downs of equipment, totaling $11.5 million, weighed on operating income, though these were offset by strong sales gains.

Other Developments

During the quarter, WLFC sold its U.K.-based aviation consultancy business, Bridgend Asset Management Limited, to its Willis Mitsui & Company Engine Support Limited joint venture, generating a $43 million gain. The move was positioned as a strategic reallocation of resources toward core leasing and maintenance operations while retaining upside through the joint venture. Additionally, in July, Willis Aviation Services secured a commitment from Jet2.com for two base maintenance lines in the U.K., signaling continued expansion in maintenance capabilities.