Willis Lease Q3 Revenue Hits Record as AUM Reaches $4.9 Billion

Willis Lease Financial Corporation (NASDAQ: WLFC) reported record third-quarter 2026 revenue as its aviation leasing and asset-management platform expanded to $4.9 billion of assets under management at September 30, up 32% year over year. The company also increased its capital base and continued to build fee income through Willis Aviation Capital, supporting its shift from a balance-sheet-focused lessor toward a broader aviation asset manager.

Total revenue reached a quarterly record of $246.3 million, while lease-rent revenue set a record at $84.4 million. Net income attributable to common shareholders was $10.2 million, or $0.47 per diluted share. Adjusted EBITDA, a non-GAAP measure, totaled $100.9 million, and net contribution margin was $25.0 million.

WLFC’s owned portfolio had blended utilization of 83% and an on-lease lease-rate factor of 1.06% per month. The company reported a net debt-to-equity ratio of 2.88 times and an 11% return on equity, calculated using last-12-month net income attributable to common shareholders and average shareholders’ equity.

Leasing and asset sales support year-to-date results

For the first nine months of 2026, lease-rent revenue increased 10.3% to $238.9 million from $216.6 million a year earlier. WLFC attributed the increase to next-generation assets and lease-market dynamics. Its average lease-rate factor for the period was 1.06%, two basis points higher than a year earlier.

The company sold 43 engines and other parts and equipment during the nine-month period, generating a net gain of $55.4 million. That represented a 15.2% increase from $48.2 million in the prior-year period.

Year-to-date net income attributable to common shareholders was $62.6 million, with diluted earnings per share of $2.86. Adjusted EBITDA totaled $345.5 million, while net contribution margin was $65.2 million.

WLFC closed $698.7 million of asset purchases, measured by base purchase price, across its managed platform during the third quarter. The company also added $35 million to its equity capital base through a preferred-equity private placement with the Development Bank of Japan.

Willis Aviation Capital expands fee-based income

Willis Aviation Capital, the company’s asset-management and investment platform, continued to increase WLFC’s exposure to capital-light and recurring revenue streams. The platform includes institutional arrangements, joint ventures and third-party managed assets, with more than $2.8 billion of committed and managed capital presented as of the end of the quarter.

Management and advisory fees rose 178.9% to $17.9 million for the first nine months of 2026, compared with $6.4 million a year earlier. Income from investments increased 51% to $14.5 million. Together, those sources generated $32.5 million against average investments of $135.5 million, representing a 32% annualized return on average investments, according to the presentation.

WLFC said the asset-management model provides additional capital for investment beyond its own balance sheet, expands the volume of assets serviced across the platform and supports lessee diversification. Management also pointed to a pipeline of opportunities in 2026 and expects the scaling of Willis Aviation Capital to provide incremental fee-based revenue.

Capital returns and operating consolidation

After the quarter ended, WLFC’s board declared its 10th consecutive quarterly dividend and increased the payment by 12.8% to $0.15 per share. The dividend is payable November 25, 2026, to shareholders of record on November 16.

The board also authorized the repurchase of up to $200 million of common stock through December 31, 2031. Separately, the company completed the acquisition of commercial facilities in Coconut Creek, Florida, where it plans to consolidate its corporate headquarters, spare-parts operations, maintenance, repair and overhaul services, and engine preservation and storage activities.

The company identified aviation-industry conditions, interest rates, access to capital, asset values, regulatory changes and the operational risks of owning and leasing aircraft and engines as material uncertainties. Its outlook also depends on successfully purchasing, selling, leasing and repossessing assets, collecting amounts due and controlling expenses. Geopolitical, cybersecurity, weather and broader economic disruptions could also cause actual performance to differ from management’s expectations.