Willis Lease Finance Corporation (WLFC) shares have surged 35.3% over the past six months, significantly outpacing the transportation equipment and leasing industry, which grew by 21.8%. The company reported lease rent revenues of $76.6 million and maintenance reserve revenues of $76.1 million in Q3 2025, demonstrating robust utilization and demand for spare engines. WLFC’s portfolio includes 354 engines and 20 aircraft leased to 69 lessees in 37 countries, primarily focusing on profitable leasing and asset management strategies.
WLFC recently formed strategic partnerships, including a $600 million deployment with Liberty Mutual Investments and a $1 billion aircraft engine leasing partnership with Blackstone Credit & Insurance, enhancing its growth potential and funding sources. However, the company faces challenges such as rising financing costs, increased interest expenses, and $10.2 million in equipment write-downs in Q3, affecting overall margins.
Trading at 5.02X trailing EV/sales, WLFC is valued below the industry average of 7.4X, indicating a potentially attractive investment opportunity. Despite operational hurdles, strong fundamental performance and strategic partnerships position WLFC for continued growth.
