Willis Lease Finance Corporation

Worth knowing

• Stock pay outran buybacks. Stock-based pay expense $89M vs $13M spent repurchasing shares over the 3 fiscal years to 2025.

  Over three fiscal years Willis Lease Finance recorded $89M of stock-based pay expense and spent $13M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years Willis Lease Finance recorded $89M of stock-based pay expense and spent $13M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.

• Much more borrowing than peers. Debt is 3.3× equity vs a peer median of 0.4×.Debt is 3.3× equity vs peers 0.4×.

  Debt is 3.3× shareholders' equity, against a peer median of 0.4×, among the highest 10% of its peer group.Debt is 3.3× shareholders' equity, vs peers 0.4×, among the highest 10% of its peer group.

• Valuation signals disagree. Cheaper than 95% of peers on free cash flow, but only 52% on operating cash profit (EBITDA).Cheaper than 95% of peers on free cash flow, but only 52% on operating cash profit.

  Relative to its free cash flow, Willis Lease Finance looks cheaper than 95% of peers; relative to its operating cash profit (EBITDA), cheaper than only 52%. The valuation score blends the two, so look at which measure fits this business best.Relative to its free cash flow, Willis Lease Finance looks cheaper than 95% of peers; relative to its operating cash profit, cheaper than only 52%. The valuation score blends the two, so look at which measure fits this business best.

• Profit recovered from an unusually weak 2022. Since 2022 (an unusually weak year for operating profit): revenue +134%, operating profit +958%.Since 2022: revenue +134%, operating profit +958%.

  Since 2022, Willis Lease Finance's revenue grew 134% while operating profit grew 958%: each extra dollar of sales is adding more profit.