WLFC 2026년 3분기 실적 발표: 사상 최대 매출 및 포트폴리오 성장

윌리스 리스 파이낸스(Willis Lease Finance Corporation, NASDAQ: WLFC)는 리스 임대료 수익 증가와 8,910만 달러의 장비 매출에 힘입어 2026 회계연도 3분기에 2억 4,630만 달러의 분기 최고 매출을 기록했다고 발표했다. 정비 충당금 수익과 자산 매각 이익이 전년 동기 대비 감소함에 따라 세전 이익은 전년 동기 대비 하락했다.

핵심 요약

• 2026년 3분기 매출은 사상 최대인 2억 4,630만 달러를 기록했다. 세전 이익은 1,880만 달러, 보통주 주주 귀속 순이익은 1,020만 달러, 희석 주당순이익(EPS)은 0.47달러를 기록했다.
• 조정 EBITDA는 1억 90만 달러를 기록했으며, 연중 누계 영업활동 현금흐름은 2억 3,900만 달러로 전년 대비 14% 증가했다.
• 포트폴리오 성장과 평균 리스율 상승에 힘입어 리스 임대료 수익은 전년 동기 대비 10.2% 증가한 8,440만 달러로 사상 최고치를 기록했다. 평균 가동률은 86%에서 83.2%로 하락했다.
• 운용자산(AUM)은 2026년 2분기 44억 달러, 2025년 3분기 37억 달러에서 약 49억 달러로 증가했다. 재무상태표상 포트폴리오의 장부가액은 33억 달러에 달해 전년 동기 대비 14.2% 증가했다.
• 정비 충당금 수익은 장기 정비 충당금 인식액이 2,950만 달러에서 260만 달러로 감소한 데 주로 기인해 7,610만 달러에서 3,930만 달러로 줄었다. 경영진은 수익 인식 전에도 관련 현금 수금은 계속 이루어지고 있음을 강조했다.
• 이사회는 분기 배당금을 주당 0.15달러로 12.8% 인상했으며, 2031년 12월 31일까지 자사주 매입 한도를 2억 달러로 확대했다.

주요 재무 데이터

사업 및 영업 실적

리스 및 포트폴리오 성장

운용리스 보유 장비, 정비권, 받을어음, 판매형 리스 투자를 포함한 재무상태표상 포트폴리오의 장부가액은 33억 달러로 증가했다. 포트폴리오는 2025년 3분기 대비 14.2% 증가한 반면, 평균 리스율은 1.04%에서 1.06%로 상승했다.

평균 가동률은 전년 동기 86%에서 83.2%로 하락했다. 경영진은 레거시, 현세대 기술 및 최신 엔진 플랫폼 전반에 걸쳐 수요가 전반적으로 견조하게 유지되었으며, 연중 리스율도 전반적으로 안정적이었다고 밝혔다.

WLFC는 해당 분기 동안 WNG 거래를 통해 민간 항공기 12대와 항공기 엔진 13대를 인수했다. 경영진은 일부 자산이 윌리스 아비에이션 캐피털(Willis Aviation Capital)로 이전됨에 따라 최근 재무상태표 성장의 일부가 일시적으로 되돌려질 수 있다고 주의를 당부했다.

LEAP, GTF, GEnx 플랫폼을 포함한 최신 기술 엔진은 금액 기준으로 포트폴리오의 60% 가까이를 차지해 전년 동기의 54%에서 상승했다.

자산 관리 및 제3자 자본

윌리스 아비에이션 캐피털은 2026년 3분기에 15억 달러를 넘어섰다. 경영진은 회사가 재무상태표, 합작법인(JV), 일임펀드 등 광범위한 플랫폼 전체에 걸쳐 약 30억 달러의 투입 가능 자본을 보유하고 있다고 밝혔다.

회사는 통상 소싱한 투자 기회의 약 3분의 1을 합작법인에, 3분의 1을 블랙스톤(Blackstone) 펀드에, 3분의 1을 자체 재무상태표에 배분하는 것을 목표로 한다. 초기 펀드 시딩이 대부분 완료됨에 따라 경영진은 신규 투자 소싱이 재무상태표 성장에 더욱 직접적인 영향을 미칠 것으로 예상하고 있다.

경영진에 따르면, 연중 누계 투자 수익과 펀드 관리 및 자문 수수료는 2026년 평균 재무상태표 투자금 대비 32%의 수익률을 기록했다.

장비 매출 및 서비스

장비 매출은 총 8,910만 달러로, 주로 윌리스 미쓰이(Willis Mitsui) 합작법인을 통해 매각된 항공기 5대와 엔진 2대, 기체 1대를 반영한 것이다. 매매 이익은 620만 달러로 7%의 매출총이익률을 기록했다.

정비 서비스 매출은 엔진 및 항공기 보관과 수리 활동에 힘입어 208.5% 증가한 1,120만 달러를 기록했다. 해당 부문은 170만 달러의 마이너스(-) 매출총이익을 기록했으나, 경영진은 내부 거래 서비스가 소유 및 관리 자산의 수익성을 지원하기도 하며 연결 재무제표 작성 시 상계 소멸된다고 설명했다.

WLFC는 전 세계 세 번째이자 아시아 최초의 윌리스 엔진 수리 센터(Willis Engine Repair Center) 부지를 말레이시아에 매입했다. 또한 본사, 부품 사업, 정비 및 수리 활동, 엔진 보관 기능을 통합한 사우스 플로리다 캠퍼스 조성 계획도 추진했다.

경영진 전망

경영진은 공식적인 매출이나 이익 가이던스를 제시하지 않았다. 2026 회계연도 전체 실효세율은 연중 누계 실효세율인 28%가 최선의 추정치라고 밝혔다. 3분기의 38% 세율에는 플로리다주 세법 개정과 관련된 약 60만 달러의 일회성 비용이 포함되었다.

블랙스톤 펀드의 투자 기간은 2년이며, 경영진은 해당 기간 내에 자금을 성공적으로 집행할 수 있을 것으로 기대하고 있다. 집행 속도는 자산 확보 가능성과 가격에 따라 달라질 것이며, 경영진은 분기별 인수 실적이 고르지 않을 수 있다고 언급했다.

새로 선언된 주당 0.15달러의 분기 배당금은 2026년 11월 16일 기준 주주를 대상으로 2026년 11월 25일에 지급될 예정이다. 이사회가 최대 2억 달러 규모의 자사주 매입을 승인했지만, 경영진은 즉각적인 매입 계획은 없다고 밝혔다.

리스크 및 주시 사항

• 경영진은 높은 유가, 고금리, 지정학적 리스크를 항공 부문의 압박 요인으로 꼽았다.
• 항공사들이 연비가 낮은 구형 항공기의 일부 계류를 논의하고 있으나, 경영진은 퇴역 건수의 의미 있는 증가를 관찰하지는 못했다고 밝혔다.
• 운항 감소와 최신 엔진으로의 전환에 따라 포트폴리오 구성이 변화하면서 단기 정비 충당금 수익이 감소했다.
• 장기 정비 충당금 수익은 리스 만기 및 연장에 의존하므로 인식 시점을 예측하기 어렵다. 3분기 리스 연장은 이전 분기보다 약 10%~15% 증가했다.
• 정비 서비스 부문은 높은 매출 성장에도 불구하고 3분기에 매출총이익 수준에서 적자를 지속했다.
• 엔진 3대에 대해 손상이 발생하여 450만 달러의 장비 감액 손실이 발생했다.

애널리스트 Q&A 주요 내용

엔진 수요: 경영진은 레거시 및 최신 엔진 유형 전반에 걸쳐 수요가 견조하며 전반적으로 일정한 수준을 유지하고 있다고 설명했다. 개별 플랫폼은 분기별로 변동이 있을 수 있으나 평균 리스율은 비교적 안정적으로 유지되었다.

자본 집행: WLFC는 신규 투자 기회를 합작법인, 블랙스톤 펀드, 자체 재무상태표에 배분할 계획이다. 펀드 시딩 단계가 대부분 완료됨에 따라 향후 투자 소싱은 재무상태표 성장에 더욱 직접적으로 기여할 것이다.

정비 충당금 부채: 부채 증가는 인수한 WNG 자산에 정비 충당금이 포함되어 있던 점도 일부 영향을 미쳤다. 장기 정비 충당금으로 창출된 연중 누계 현금은 전년 동기의 1,620만 달러 대비 2,780만 달러를 기록했다. 리스가 연장될 경우 수익 인식이 이연될 수 있다.

리스 비중: 장기 리스와 단기 리스 비중은 거의 동일하게 유지되고 있다. 포트폴리오의 평균 리스 기간은 약 2년이지만, 장기 계약의 경우 이 평균을 웃돈다.

자본 배분: 경영진은 보통주 매입, 전환사채 할인 매입, 추가 항공 자산 인수의 수익률을 비교 평가할 예정이다. 사채 매입은 2억 달러 규모의 자사주 매입 승인과는 별개로 진행된다.

자산 가치: 경영진은 연례 감정평가가 갱신될 때 감정 시가와 장부가액 간의 비율 차이에 유의미한 변화는 없을 것으로 예상한다고 밝혔으며, 정식 검토는 연 1회 실시된다는 점을 강조했다.

실적 발표 컨퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

We would like to remind you that during this conference call, management will be making forward-looking statements, including statements regarding our expectations related to financial guidance, outlook for the company and our expected investment and growth initiatives.

Please note these forward-looking statements are based on current expectations and assumptions with respect to risks and uncertainties.

These statements reflect WLFC's views only as of today. They should not be relied upon as representative of views as of any subsequent date, and WLFC undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements in the light of new information or future events.

These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For further discussion of the material risks and other important factors that could affect WLFC's financial results, please refer to its filings with the SEC, including, without limitation, WLFC's most recent quarterly reports on Form 10-Q, annual report on Form 10-K and other periodic reports, which are available on the Investor Relations section of WLFC's website at https://www.wlfc.global/investor-relations.

Austin Willis

Thank you, operator, and thank you all for joining us today to discuss Willis Lease Finance Corporation's Third Quarter 2026 Financial results.

On our call today, I'm joined by Scott Flaherty, our Chief Financial Officer. I'm pleased to announce another great quarter. We continue to deliver on our strategy to expand our platform with services, managed capital and balance sheet investment.

We grew our assets under management by 10% quarter-over-quarter and our on-balance sheet portfolio by 12% quarter-over-quarter. This was due in large part to the closing on the purchase of the WNG aircraft and engine leasing entities.

Our results reflect the strength of our core leasing business. As we add assets to the balance sheet, it has a clear, direct and positive impact to our earnings. By growing Willis Aviation Capital, we are investing in the future, driving long-term fees, carried interest and asset growth to run through our services businesses.

We continue to be selective in the types of transactions that we pursue. As we originate aircraft and engine investment opportunities, we allocate them across our different pools of capital, namely on our balance sheet and Willis Aviation Capital, which encompasses our 2 discretionary funds and our joint venture with Mitsui and CASC in China.

As we deploy capital into our different funds, we will see slower growth on our balance sheet for a period of time. Now that the seeding phase of our fund strategy is complete, we can focus more directly on building up our balance sheet, which you can see from our Q3 results reacts favorably to even modest amounts of growth.

In Q3, we took several meaningful steps forward. Beyond expanding our aircraft and engine portfolio, we announced plans to replicate our proven engine repair center model in Asia, building on the success of our operations in the U.K. and in the U.S.

We also advanced plans to expand our operations in South Florida with the acquisition of a new facility that will house and consolidate our parts business, WASI, and our MRO, WERC U.S., establish a new corporate headquarters and provide a controlled environment for storing and maintaining engines.

I will recap these updates in greater detail shortly. We are making these investments against the backdrop of strong underlying demand for our assets and services supported by persistent engine supply constraints and growing aftermarket maintenance requirements.

Financially, we ended the quarter with about $4.9 billion in assets under management, increasing this from roughly $3.7 billion in Q3 2025 and $4.4 billion in Q2 2026.

For the first time, we surpassed $3 billion in our on-balance sheet portfolio. For the quarter, we delivered earnings before tax of $19 million and adjusted EBITDA of $101 million. I'd also like to highlight our contribution margin, a key indicator of the strength of the leasing business.

Contribution margin is defined as lease rent revenue and interest income less interest expense and depreciation and amortization of assets held for lease. In Q3, it exceeded $25 million, representing 18% year-over-year growth and a record quarterly high.

This is driven largely by balance sheet growth, and it should be noted that some of this may be temporarily reversed as we take a selection of these assets we just purchased and move them from held for sale into Willis Aviation Capital.

Scott will provide more details in a few minutes. Before turning to our individual business segments, I'd like to spend a few minutes discussing market dynamics.

Fuel prices, high interest rates and geopolitical risks are challenging the aviation sector, yet we continue to see strong demand for our products and services. Having come back from a regional tour of Asia in late August, 2 things are clear. High fuel prices are influencing operators regionally and the growth that the region is experiencing is profound.

Based on our conversations with numerous airlines over the past few months, we aren't seeing a meaningful increase in retirements, but there is discussion about parking some aircraft. By and large, these are older, less fuel-efficient aircraft. You can see from our results that short-term maintenance reserves have decreased since April 2026.

This is partially driven by macro events that have resulted in less flying, but it is also a byproduct of modernizing our fleet, which is now nearly 60% modern technology like LEAP, GTF and GEnx engine platforms versus 54% 1 year ago.

Should high fuel prices and other factors continue to pressure airlines, we remain exceptionally well positioned to help provide liquidity to those airlines looking to shore up their balance sheets and to provide ConstantThrust-type solutions to airlines who would rather opt to lease in temporarily rather than pay expensive shop visits during times of tight liquidity.

Speaking of liquidity, we have a great deal of dry powder ready to deploy through our balance sheet and Willis Aviation Capital. Now let me turn to the Willis platform and our primary business segments, leasing, Willis Aviation Capital and Services.

Starting with leasing. Our leasing business is performing well as we have been focusing on reallocating assets to different pools of capital to execute our growth strategy across our balance sheet business and Willis Aviation Capital.

We saw solid utilization of our lease portfolio in Q3, averaging about 83%. In August, we announced the acquisition of 12 commercial aircraft and 13 aircraft engines.

This is a significant expansion of our portfolio that puts capital to work in assets fitting well within our existing business and reflects our continued focus on disciplined growth and long-term value creation.

Next, Willis Aviation Capital, or WAC, grew to over $1.5 billion in Q3 2026. As we stand today, we have roughly $1 billion of additional capital ready to deploy through our discretionary funds, which is in addition to the capital raised by our joint ventures and Willis Aviation Capital structure.

This liquidity, along with the undrawn revolver capacity and our low net leverage provides added flexibility that will allow us to execute our growth strategy. This model can meaningfully increase the scale of the Willis platform over time while generating additional asset management and services revenue. I'd like to point you to Slide 9 in our investor presentation, which shows our income from investments and fee-related earnings.

When you combine these 2 elements, you can see the return on equity that we generate by managing third-party capital is significant, and this is going to be a key driver for us as we grow. Finally, services.

With industry maintenance capacity constrained and shop visits taking longer, our services businesses continue to be a major strategic advantage and value creator for our own assets and those we manage. Just before our Q2 earnings call, we announced a long-term engine storage agreement with Pratt & Whitney to provide storage and lease return services for PW1100, PW1500, PW1900, PW4000 and V2500 engines. WLFC will support Pratt & Whitney's growing aftermarket storage requirements from its Florida, U.K. and Malaysia facilities.

Another exciting update from the third quarter was the purchase of land to build a new Willis Engine Repair Center, or WERC, in Malaysia.

This is our third WERC facility globally and our first in Asia. And like our facilities in Florida and the U.K., it will provide maintenance, repair and storage services for our engine portfolio and third-party assets.

Critically, this new facility allows us to get closer to our customers and partners across the Asia Pacific and will support our long-term growth across the region. As I mentioned earlier in my remarks, I recently spent 2 weeks traveling around Asia, meeting customers, partners and other stakeholders.

And a large takeaway was the level of activity and long-term confidence in aviation across the region. It's one of the world's fastest-growing aviation markets and as demand for engine maintenance continues to accelerate, we are confident that WERC in Malaysia will position Willis to capitalize on this long-term growth.

Our investment in the APAC region demonstrates the global scale of our ambition. And in Q3, we made similarly important investment in infrastructure here in South Florida with the purchase and sale agreement for a new campus that will bring our headquarters, spare parts business, maintenance and repair operations and engine storage together under one roof.

This is not only a reflection of our expanded operational footprint, but it will increase operational efficiency, promote faster decision-making process, support future customer demand and bring our people closer together.

South Florida has been an excellent home for our business, and we're proud to continue growing within the region. And to support further expansion of our global services platform, in September, we entered into a $35 million preferred stock purchase agreement with the Development Bank of Japan for our Series B preferred stock, taking us to $100 million total in Series B preferred stock.

This builds on our long-term partnership with DBJ and further diversifies the sources of capital to support growth. Finally, we recently announced an increase in our quarterly dividend to $0.15 per share, reflecting a 12.8% increase from our prior August distribution and our long-term confidence in our business.

We also announced that the Board has approved the renewal and increase of our share repurchase program under which the company may repurchase its common stock for an aggregate purchase price of up to $200 million through December 31, 2031.

While we do not have immediate plans to repurchase shares, we want the flexibility to act should the right opportunity present itself. As I've stated before, we view ourselves as a growth stock with numerous attractive opportunities to deploy capital. At the same time, we continue to evaluate ways to return capital to shareholders, including through accretive share repurchases that can deliver premium returns.

Overall, we have achieved another solid quarter, and we are confident in the progress we are making to scale our global platform, expand our portfolio and deliver long-term value for our shareholders.

With significant capital to deploy into attractive aviation assets and with strong demand across both our leasing and maintenance services, we believe WLFC is well positioned for the next phase of growth. With that, I would like to hand it over to Scott Flaherty, our CFO, to discuss our financial performance in greater depth.

Scott Flaherty

Thank you, Austin, and good morning, all. Q3 was a solid quarter for Willis Lease, producing multiple records for the business from core lease rent revenues through income received from our many investments.

As we focused the first half of the year on staging and seeding our funds and joint ventures, we have now shifted to growth across the platform. The third quarter's record $246.3 million of revenues produced $18.8 million of earnings before tax, or EBT, $10.2 million of net income attributable to common shareholders and $0.47 of diluted earnings per share, as well as $100.9 million of adjusted EBITDA.

Walking through the P&L, our quarterly top line was driven by record lease rent revenues of $84.4 million in the quarter. Lease rent revenues were up 10.2% year-over-year. Growth in lease rent revenues was driven by an increase in balance sheet portfolio, up 14.2% from Q3 2025, measured as equipment held for operating lease, maintenance rights, notes receivable and investment in sales-type leases, which at the end of the third quarter was $3.3 billion in book value.

Strength in lease rates as our average lease rate ticked up from 1.04% to 1.06% in the comparable year-over-year period, all of which was slightly offset by average utilization, which was down from 86% in Q3 of '25 to 83.2% in Q3 of '26.

Maintenance reserve revenues for the quarter were $39.3 million, down from $76.1 million in the prior comparable period. The majority of that decline was due to lower long-term maintenance reserves, which is associated with engines coming off long-term leases.

This was $2.6 million in the current quarter compared to $29.5 million as we only recognized long-term maintenance reserves on 3 engines in the third quarter of 2026. $36.8 million of these revenues were short-term maintenance reserves as compared to $46.6 million in the third quarter of 2025.

Short-term maintenance reserve revenues are a proxy for both the number of engines that we have on short-term lease conditions as well as the operating tempo of these engines. New tech engines, which make up a larger percentage of our portfolio, approximately 60% today, tend to be on long-term lease conditions.

So despite the fact that we receive maintenance reserve cash flows for the monthly utilization of these assets, we do not recognize the revenues generally until the end of lease. Looking at the long-term maintenance reserve cash receipts year-to-date 2026, we see that they are up 72% to $27.8 million compared to the first 9 months of 2025. Although this does not immediately hit our P&L, they provide significant cash flow to the business and are reflective of our growth in the new tech equipment.

Spare parts and equipment sales were $98.1 million in the quarter compared to $5.4 million in the comparable period in 2025. Spare parts sales were $9.1 million in Q3 ' 26, up 67.8% from $5.4 million in the comparable prior quarter. Gross margins on spare parts were 10%. Sales in the consolidated P&L do not reflect $3.5 million of intercompany sales that are transacted at cost and eliminated in consolidation, providing incremental value to the consolidated business and our lease portfolio.

Equipment sales in the third quarter of 2026 were $89.1 million, where there were no such sales in the prior comparable period. These Q3 2026 revenues primarily reflect the sale of 5 aircraft recently acquired through our Willis Mitsui joint venture, where the company effectively warehoused these assets to effect the sale.

Also included in these sales were 2 engines and 1 airframe. The trading profit on sale of this equipment was $6.2 million, representing a 7% gross margin. Gain on sale of lease equipment, a net revenue metric, was $5.5 million in the third quarter, resulting from the sale of 8 engines as well as other equipment compared to $16.1 million in the comparable prior period.

Q3 gains on sale represented a 17% gross margin on $32.1 million of gross sales. Gain on sale was lighter than the gains in the preceding quarter as Q2 was influenced by the seeding of our leasing fund portfolio. Maintenance services revenue, which represents engine and aircraft storage and repair service and revenues related to management of fixed-based operator services, increased by $7.6 million or 208.5% to $11.2 million in the third quarter of 2026.

This growth was predominantly related to growth in engine and aircraft storage and repair services. Gross margin was a negative $1.7 million for the quarter. Our maintenance services offerings enhance our ability to provide a differentiated offering and program solution to our customer base. Intercompany revenue for maintenance services are eliminated in consolidation and therefore, not reflected in our P&L but continue to increase the profitability of our owned and managed assets.

Management and advisory fees, the fees generated through our asset management efforts, were $4.5 million in the quarter, up 140%. On the expense side of the equation, depreciation and amortization expense increased by $2.7 million or 9% to $31.4 million in Q3 2026.

The increase is primarily due to an increase in the size of our lease portfolio and the timing of placing acquired engines on lease. Write-down of equipment was $4.5 million in the third quarter, reflecting the impairment of 3 engines.

These asset write-downs are generally associated with the evaluation of engines post lease return. G&A expenses decreased by $0.5 million to $48.7 million in the third quarter. The decrease was primarily driven by a reduction in personnel costs and expenses related to the ceased sustainable aviation fuel project, partially offset by increased outside professional and insurance costs.

Technical expense increased by $5.1 million to $13.5 million in the quarter as compared to $8.4 million in the prior comparable period due to an increased level of engine repair activity. Technical expense generally relates to unplanned maintenance, whereas engine performance restorations tend to be planned and capitalized events.

Net finance costs decreased $4.3 million or 11.7% to $32.8 million in the quarter. The decrease was primarily attributable to $2.4 million of lower costs associated with debt extinguishment as we had effectively completed the paydown of our WEST VII financing and a lower overall weighted average cost of debt capital, slightly offset by increased total leverage.

Income from operations was $11.5 million compared to $38 million in the prior comparable period. Income from investments was $7.3 million, up $2.1 million or 41% from the prior period. This income was driven by growth contributions from our Willis Mitsui joint venture as well as our other asset management businesses and slightly offset by declines through our smaller China-based joint venture.

When we analyze our year-to-date income from investments and fund management and advisory fees and compare that to our 2026 average balance sheet investments, we can see that these initiatives have generated a 32% ROI.

Earnings before tax, or EBT, of $18.8 million for the quarter as compared to EBT of $43.2 million for the prior comparable period. Income tax expense was $7.1 million for the quarter, reflecting a 38% effective tax rate. Our third quarter effective tax rate includes a onetime charge of approximately $0.6 million or 3 percentage points, reflecting the impact of Florida's 2026 legislative decision not to adopt certain federal tax law changes under the One Big Beautiful Bill and the resulting updates to our current and deferred tax estimates.

As this adjustment relates to prior year tax positions, we do not expect it to recur. We would expect that our year-to-date 28% ETR to be the best estimate for a full year ETR. The company produced $10.2 million of net income attributable to common shareholders, which factors in GAAP taxes, net income attributable to our noncontrolling interest and the cost of our preferred equity.

Diluted weighted average income per share was $0.47 in the third quarter of 2026. Adjusted EBITDA for the third quarter of 2026 was $100.9 million. We believe that our adjusted EBITDA reflects the normalized cash flow generation capability of the Willis enterprise. Our adjusted EBITDA makes adjustments to our net income attributable to common shareholders for income tax expense, interest expense, preferred stock dividends and costs, the loss on debt extinguishment, depreciation and amortization expense, stock-based compensation expense, write-down of equipment, acquisition financing and divestitures-related expenses and other discrete gains and expenses.

Net cash provided by operating activities year-to-date was $239 million, up 14% compared to Q3 year-to-date 2025. Fluxes with the prior period predominantly related to changes in net income, net of tax effects, the cash tax effects, losses on debt extinguishment, the noncash effects of impairment on equipment, the prior year gain on sale of our WAML business to Willis Mitsui and a period-over-period $44 million increase in cash provided by changes in assets and liabilities.

On the financing and capital structure side of the business, the company, in July, effected a 3-for-1 common stock split effective July 21, 2026, to provide for more liquidity in our common shares.

On September 29, we closed a private placement of $35 million of Series B Preferred stock with our partner, the Development Bank of Japan, increasing their par investment in our preferred shares to $100 million.

The incremental $35 million investment carries an 8.09% dividend. On October 28, the Board of Directors approved the expansion and extension of our share repurchase program. The program was increased to $200 million in total size and extended through December 31, 2031.

In August, we paid our ninth consecutive regular quarterly dividend, which was $0.133 per share. Subsequent to quarter end, our Board of Directors has declared our 10th consecutive recurring quarterly dividend at a rate of $0.15 per share, reflecting a 12.8% increase from our prior dividend.

This dividend will be payable on November 25 to holders at November 16, 2026.

Our recurring dividend provides shareholders with a moderate current cash yield on their investment while not degrading the strong cash flow of our business and speaks to the health of the business and its underlying cash flow generation.

With respect to leverage, as defined as total debt obligations, net of cash and restricted cash to equity, inclusive of preferred stock, our leverage was 2.88x at the end of the third quarter of 2026.

Our leverage and capital availability across the entire Willis platform provides us the flexibility to access market opportunities as they become available. With that, I will hand the call back to Austin.

Austin Willis

Thank you, Scott. As you can see, we are delivering on our strategy to supplement our on-balance sheet leasing business with asset management. While this strategy moderates on-balance sheet growth as we deploy third-party capital, it is consistent with our long-term strategy, and we expect it to ultimately deliver premium returns. With that, I'd like to open up the call for Q&A.

Operator

[Operator Instructions] We'll take our first question from Angelina Zhao with Deutsche Bank.

질의응답

Yongqi Zhao

This is Angelina Zhao on for Shannon. So my first question is this quarter saw a solid increase in lease revenue. What are you seeing in terms of demand across your engine portfolio by engine types?

Austin Willis

Thanks, Angelina. We're seeing pretty consistent demand across our portfolio, both in the legacy or current tech as well as the more modern tech.

We generally don't break it down engine by engine. But I can tell you that it still remains robust. There's always fluctuations. You might have a 5B or a 7B high one quarter and a little bit lower the next quarter, and the same goes for GTF or LEAPs.

So we continue to see fluctuations, but demand remains pretty consistent. Lease rates have remained on average pretty flat for the majority of the year for most of the engine types. So some going up a little bit and some going down a little bit.

Yongqi Zhao

Got it. And I have another question. So you called out focusing on growing the Willis platform, including your balance sheet.

And with remaining capital available across the Liberty Mutual and Blackstone strategies, how should we think about the pace of deployment from here and the mix of incremental asset growth between the balance sheet and the managed third-party capital?

Austin Willis

Sure. So we have in round terms, about $3 billion in capital that we can deploy or dry powder, so to speak.

We tend to think about our origination opportunities in terms of 1/3, 1/3, 1/3. We try to allocate about 1/3 between our joint ventures, 1/3 between our fund with Blackstone and 1/3 on balance sheet. The first half of the year, we really focused on seeding the Blackstone and Liberty Mutual funds.

So that was both trying to originate from the market, but also taking assets from our own balance sheet and putting them into those funds. So that slowed our pace of growth on balance sheet somewhat while we did that. We've done the majority of that seeding now. So as we originate, it's going to have a more direct impact to our on-balance sheet growth as we also grow the other pockets of capital as well. And that's sort of what I was trying to allude to in my prepared remarks.

Operator

We will take our next question from Will Waller with M3F.

William Waller

Great quarter operationally. From my perspective, this is probably one of the strongest quarters I've seen in the history of Willis. So great job.

On the maintenance reserve liability, in the press release, you discussed the timing of recognition of long-term maintenance revenue -- long-term maintenance reserve revenue. I track the build of that through the balance sheet liability, which increased to $201.7 million at September 30, up from $129.3 million at June 30.

I don't recall ever seeing a growth of that magnitude while only $2.6 million was recognized as long-term maintenance revenue during the quarter. Could you walk us through kind of the primary drivers of that liability increase and specifically, how much of that came from net collections of reimbursable reserves versus any amounts that were assumed in acquisitions or other portfolio activity?

Austin Willis

So I will just say one quick thing, and then I'll hand it over to Scott. We did have the highest number of lease extensions in the third quarter that we saw in over a year and higher than -- 2026 to date has been higher than 2025, but a little bit lower than '24.

And as you know, lease extensions do play a role in rev rec with respect to long-term reserves. So I wanted to quickly mention that, but I'll hand it over to Scott, who's going to be able to give you a more concise answer.

Scott Flaherty

Sure. Thanks, Austin. And thanks, Will. Thanks for the comments on the quarter. So yes, you're talking about a couple of things, Will, that have happened.

Obviously, we were acquisitive in the quarter. And Austin, I think, discussed the WNG transaction.

So some of the assets we brought over did come with reserves, right? So that's going to adjust -- that will have an effect on our pro forma balance sheet. But then -- and you'll see this when we come out later today with our 10-Q. Then if you just look on our cash flow statement and you look at the net cash provided by maintenance reserves, right? And the maintenance reserves are going to be associated with those long term -- with the long-term leases was $27.8 million compared to -- year-to-date compared to $16.2 million year-to-date in the prior year.

So what we are seeing, right, is that shift or the mix shift slightly to newer tech assets, which tend to be on a longer-term lease.

And whereas you might not see that in the P&L, long-term MR, you definitely see it on a cash basis.

William Waller

Okay. That makes sense. And Austin, you mentioned that the kind of lease extension rate is a bit elevated. Do you guys have any sense of what percentage of long-term leases are being extended that would then obviously defer the recognition of some of that maintenance reserve revenue on the long-term leases?

Austin Willis

I don't have those numbers handy right now. But I will say that, generally speaking, the lease extensions were, I'd say, 10% to 15% higher than they had been in previous quarters.

And I wouldn't attribute that to anything in particular other than just the normal fluctuations in our business.

William Waller

Yes, probably shows that there's good demand. Nobody wants to -- a lot of airlines don't want to return engines, which I'd say is probably a positive trend.

And then on the -- you kind of mentioned that a lot of these are new generation engines. I think you gave the statistic that 60% of your portfolio is now sort of the new tech engines. Is that by number or by dollar amount that's carried on your balance sheet of your equipment? Is it by number of engines or by dollar amount of engines that 60% is new tech engines?

Austin Willis

That's by dollar amount.

William Waller

Okay. Great quarter. And if there's no other questions, I might ask one more, but I'll drop back into the queue.

Operator

We'll take our next question from Buckley Capital.

Unknown Analyst

Congrats on the quarter. I think Will asked the majority of my questions. I guess I just want to make sure I understand sort of how much of that balance sheet increase related to maintenance reserves was acquisitions versus organic?

Scott Flaherty

So the amount of the increase that was related to cash flow for -- on a year-to-date, like I said, was $27.8 million, right? And the rest -- so on a year-to-date basis, so looking back and the rest was related to acquisition.

Unknown Analyst

Got it. And then any commentary you guys have on like the pacing of how the Blackstone portfolio will kind of build over time?

Austin Willis

Yes. I mean it's going to be consistent with our general origination. And I'll say we've been pretty judicious about what we bought over the past year. It's going to come down to where the market opportunities play out in 2027.

I think there's a view that there may be more opportunities to acquire attractive assets at good values. And should that manifest itself, and I think we'll deploy pretty quickly. But these also do tend to be lumpy. So I know that's not a very precise answer for you.

But we have -- I believe it's 2 years for the investment phase of the funds, and our expectation is to deploy the capital well inside of that.

Unknown Analyst

Got it. And then I guess just last thing, is there any commentary you can have on kind of when the balance sheet item will be released into the income statement? Like will that happen in the next 12 months? Or any specificity you can provide would be helpful.

Scott Flaherty

You're talking about the specific.

Unknown Analyst

Maintenance reserves...

Scott Flaherty

No, it's hard for us to do that for a lot of the reasons that we're talking about. The assets get extended on lease.

But it's just -- it's over time, it does get recognized, right? I mean it's really all timing, right? The cash flow is happening on a current basis.

Most of the engines that we have that are on long-term lease are going to be paying current MRs. So the cash flow is being realized in real time. But over time, the long-term MR will be realized.

But it's really hard for us to say exactly when it is because the various terms of the lease. We look at our average portfolio is approximately 2 years, but the longer-term leases are obviously longer than that, and they'll be realized over that period.

Operator

[Operator Instructions] We'll go back to Will Waller with M3F.

William Waller

Yes. As it relates to the $200 million share repurchase authorization, when you look at the convertible debt, how do you look at buying back common stock versus potentially buying back that convertible debt? And would that -- if you did go back into the markets and buy some of the debt that you recently issued, would that go against that repurchase authorization that you just authorized? Or would that be something you could do outside of that?

Scott Flaherty

Yes. So good question. It's 2 different things, right? The convertible bond is not part of a share repurchase program.

So can we go out and buy debt in the open market and retire at a discount? Yes, we can. And that would not go against the $200 million program that we have on the share repurchase side.

But as always, we kind of look where we get the most bang for the buck for how we spend our dollars and how we allocate our capital. And does it make sense to buy a share back or does it make sense to buy debt back in the open market? I mean, we've done all of these things in the past or does it make sense to put the next dollar into a new asset?

We kind of evaluate all these things on a case-by-case basis to where we're going to generate the best returns for the business.

William Waller

Okay. That makes sense. And then I think at the end of last year, you had about appraisals were kind of showing the current market value of engines. I think we're about $700 million above what was -- what they're carried out on the balance sheet.

Does it feel like to you guys, and I know you only get appraisals done once a year, I think, on those, but with all the changes that have gone on with your portfolio with sales and so on, do you have any sense of what that gain might be today, the unrealized gain?

Scott Flaherty

Sure. Yes. So well, as you know, we do this once a year. So -- and definitely, I want to encourage you to stay tuned for when we do it, when we tell you next year.

But I wouldn't expect there to be any material difference in kind of percentages, right? We haven't seen material movements. And our portfolio is material enough that it doesn't change over any specific quarter. So I would expect to have consistent percentages that we've had in the past there.

William Waller

Great. That's good to hear. And it seems like the stock trades at such a discount to sort of what the intrinsic value of the equity and the value of the engines you have that would make great sense if you buy back stock or buy back some of the debt.

So glad to see the authorization and hope to see that you act on it. And then one last question, just kind of circling back to the topic I asked about before on long-term maintenance revenues and so on. Do you know roughly what percentage of your leases are long term versus short term? I know historically, it's kind of 50-50, but just kind of curious what that is these days.

Austin Willis

Yes. That really hasn't changed very much, Will. It's still roughly 50-50.

Operator

With no additional questions in the queue at this time, I'd like to turn the call back over to Austin Willis for any additional or closing remarks.

Austin Willis

Thank you, operator. We appreciate everybody giving us their time today, and we look forward to speaking to you again in the new year.

Operator

That will conclude today's call. We appreciate your participation.