Willis Lease Finance Corp (NASDAQ: WLFC)

Willis Lease Finance Corp operates as a leading lessor and servicer of commercial aircraft and aircraft engines. The company's primary business objective is to build value for shareholders by acquiring commercial aircraft and engines, then managing these assets to generate returns through lease rent and maintenance reserve revenues, as well as management fees earned for managing assets owned by third parties. As of December 31, 2025, Willis Lease Finance Corp had a diverse portfolio including 363 engines, 20 aircraft, one marine vessel, and other leased parts and equipment, serving 69 lessees across 37 countries. The company also manages 116 engines and related equipment for third parties, demonstrating its significant role in the aviation industry.

Revenue generation for Willis Lease Finance Corp is primarily driven by lease rent and maintenance reserve revenues from its extensive portfolio of commercial aircraft and engines. The company's primary products include noise-compliant Stage IV commercial jet engines manufactured by CFMI, General Electric, Pratt & Whitney, Rolls Royce, and International Aero Engines. These engines are widely used and power aircraft from major manufacturers such as Airbus, Boeing, Bombardier, and Embraer. The company's customer base includes commercial aircraft operators and maintenance, repair, and overhaul organizations (MROs) worldwide, catering to the global demand for aircraft leasing and related services.

• Leasing and Related Operations: This segment is the core of Willis Lease Finance Corp's business, focusing on leasing aircraft and aircraft engines to a diversified group of commercial aircraft operators and MROs. The company's strategy involves providing spare engines to support fleet operations during maintenance cycles and unscheduled events. The engine portfolio consists of widely used engines that power various aircraft types. Revenue from this segment accounted for 94.9% and 95.4% of the company's total consolidated revenue for the years ended December 31, 2025 and 2024, respectively. The segment also includes the management of assets owned by third parties, further diversifying the revenue streams.

• Spare Parts Sales: Managed by the wholly-owned subsidiary Willis Aero, this segment engages in the sale of aircraft engine parts and materials. Willis Aero acquires or consigns engines from third parties or from the leasing portfolio to provide end-of-life solutions for surplus aircraft and engines. This business segment enhances the returns on the company's engine portfolio and creates incremental value for shareholders. As of December 31, 2025, the spare parts inventory had a carrying value of $56.6 million.

Willis Lease Finance Corp holds a strong position within the aircraft leasing industry, competing with aircraft engine and aircraft parts manufacturers, aircraft and aircraft engine lessors, airline and aircraft service and repair companies, and aircraft and aircraft engine spare parts distributors. The company distinguishes itself through the quality of its engine portfolio, supply reliability, and high level of customer service. It focuses on ensuring adequate engine availability in high-demand locations, building strong relationships with lessees, and maintaining close coordination with them. Additionally, the company has developed an engine pooling arrangement that allows pool members quick access to available spare aircraft engines, further enhancing its competitive advantage.

The company's customer base is diverse and global, with lessees located in 37 countries. Willis Lease Finance Corp serves commercial aircraft operators and MROs, providing them with the necessary engines and related services to support their operations. The company's extensive portfolio and global reach allow it to recover from the loss of any single customer, ensuring stability and continuity in its business operations.