Willis Lease Finance Corporate (WLFC) CEO Austin Willis said the company is confident in its core engine leasing business despite market volatility created by tariffs, he said during the company’s first quarter earnings results.
“While concerns over tariffs have created market volatility, we remain confident in the drivers of our business,” said Willis in a statement. “The cost of new engines continues to drive operators towards leasing, and our maintenance capabilities and programmes provide value and certainty for cost conscious airlines.”
Willis said during the company’s earnings call that tariffs presented “both challenges and opportunities”. He later added in the call that direct tariff impact has been de minimis – both on the import and leasing side.
“There was a little bit of noise around China early on with respect to the implication of tariffs on lease rent revenue, but it looks like that has largely gone away,” explained Willis. “Things are pretty much business as usual.”
He added that the future tariff impact is largely speculative at present. “I don’t think it’s unreasonable to expect some degree of asset inflation with our existing portfolio,” he continued. “I think engines coming out of the OEMs are likely to be a bit more expensive because of the tariffs that they incur and will drive up values elsewhere.”
Additionally, the company said its repair stations based in the US and the UK will “work well in the event that the world does become more of a bifurcated system".
Revenues were up 32.5% to $157.7 million during the quarter, with a pre-tax income of $23.3 million, down 12.2%. The company’s net income dropped 19.2% to $16.9 million. Total expenses had climbed 45.7% to $133.8 million.
Lease rent revenue was up 28.1% to $67.7 million, while maintenance reserve revenue climbed 25% to $54.9 million. The company’s spare parts and equipment sales totalled $18.2 million during the quarter.
As of March 31, 2025, the company’s lease portfolio was $2.8bn.
The company had declared a quarterly dividend on $0.25 per share on May 2, 2025.
The dividends are expected to be paid on May 22, 2025.
