Willis Lease Finance Corporation reported on August 4 that net income fell 51.2% to $28.7 million in its second quarter, even as operating income grew and its fee-based asset management arm expanded.
Diluted earnings per share dropped to $1.31 from $2.81 a year earlier. The second quarter of 2025 included a $43.0 million gain from the sale of the company’s BAML business that had no counterpart this year. Willis Lease also recognized a $5.4 million loss on debt extinguishment in the quarter, and $12.4 million over six months, tied to refinancing.
Income from operations climbed 20.2% to $34.0 million in the quarter ended June 30, 2026, driven by lease rent revenue, which rose 6.7% to $77.1 million as the average portfolio size expanded. Over the first six months of 2026, lease rent revenue rose 10.4% to $154.5 million.
The company’s trading business booked a $32.0 million gain on the sale of leased equipment, up 16.2%, after selling 21 engines and other parts and equipment during the quarter, compared with 14 engines and two airframes a year earlier.
Assets under management, which combines the on-balance-sheet fleet with the Willis Aviation Capital business, grew 21% year over year to $4.4 billion. Management and advisory fees jumped 113.4% to $5.5 million in the quarter and 194.9% to $13.4 million over six months. CEO Austin C. Willis tied that growth to building out Willis Aviation Capital.
Two new investment fund partnerships underpin the shift toward managing third-party capital: one with Liberty Mutual Investments that began operating in March 2026, and one with Blackstone Credit & Insurance that started in April 2026.
Total revenue slipped 0.8% to $194.0 million. Spare parts and equipment sales fell 30.2% to $21.2 million and interest revenue dropped 67.6%. General and administrative expense rose 10.2% to $55.6 million, and the company recorded a $4.9 million write-down of equipment.
Debt obligations dropped from $2.70 billion to $2.32 billion, and the engine count in the lease portfolio fell from 363 to 334, while leased aircraft rose from 20 to 22.