Q4 and Full- Year 2025 Earnings Call Presentation
This presentation does not constitute an offer to any person or to the public generally to subscribe for or otherwise acquire any securities. This presentation has been prepared solely for informational purposes and is not intended to serve as the basis for any investment decision. Under no circumstances is this presentation or the information contained herein to be construed as a prospectus, offering memorandum or advertisement and neither any part of this written or oral presentation nor any information or statement contained herein or therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in any jurisdiction where such an offer or solicitation would be unlawful. Forward Looking Statements This presentation contains certain forward-looking statements within the meaning of the federal securities laws. Some of the forward-looking statements can be identified by the use of forward-looking words. Statements that are not historical in nature, including ‘‘anticipate,’’ ‘‘may,’’ ‘‘estimate,’’ ‘‘should,’’ ‘‘expect,’’ ‘‘plan,’’ ‘‘believe,’’ ‘‘intend,’’ and similar words, or the negatives of those words, are intended to identify forward-looking statements. They also include statements containing a projection of revenues, earnings (loss), capital expenditures, dividends, capital structure or other financial terms. Certain statements regarding the following particularly are forward-looking in nature: • Willis Lease Financial Corporation (the "Company" or "WLFC")’s business strategy; • WEST’s business strategy and assumptions used to develop the cash flow models; • future performance, developments, market forecasts or projections; and • WLFC’s projected capital expenditures. All forward-looking statements are based on our beliefs, assumptions and expectations of future economic performance, taking into account the information currently available. These statements are not statements of historical fact. Forward-looking statements are subject to a number of factors, risks and uncertainties, some of which are not currently known and many of which are beyond WLFC’s and WEST’s control, which may cause actual results, performance or financial condition to be materially different from the stated expectations of future results, performance or financial position, as well as those included in the cash flow models. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include, but are not limited to: • the effects on the airline industry and the global economy of events such as terrorist activity; • changes in fuel prices and other disruptions to the world markets and the global economy of geopolitical, weather, cybersecurity, humanitarian and other events, including but not limited to war and terrorist activity; • trends in the airline industry, including growth rates of markets and other economic factors; • risks associated with owning and leasing commercial engines and aircraft; • changes in interest rates and availability of capital to us and to our customers; • our ability to continue to meet our customers’ changing demands; • the market value of engines and other assets in our portfolio; • regulatory changes affecting commercial aircraft operators, aircraft maintenance, engine standards, accounting standards and taxes; and • WLFC’s, in its capacity as Servicer, ability to successfully negotiate engine purchases, sales and leases, to collect outstanding amounts due, and to repossess engines under defaulted leases, and to control costs and expenses. • further information regarding these and other risks is included in WLFC's most recent U.S. Securities and Exchange Commission ("SEC") filings, including its Annual and Quarterly Reports on Forms 10-K and 10-Q, respectively, filed with the SEC under the heading “Risk Factors.” In light of these risks, uncertainties and assumptions, you are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of presentation or as of the date of any document incorporated by reference, as applicable. Such forward-looking statements are inherently uncertain, and actual results may differ from expectations. We are not under any obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise. Non-GAAP Financial Measures In this presentation, WLFC presents certain non-GAAP measures, including Adjusted EBITDA and similar measures, which are not required by, or presented in accordance with, GAAP. While WLFC believes these are useful metrics, companies use these metrics for differing purposes and they are often calculated in ways that reflect the particular circumstances of those companies. You should exercise caution in comparing the non-GAAP metrics reported by us to such metrics or other similar metrics as reported by other companies. Our non-GAAP metrics have limitations as analytical tools, and you should not consider them in isolation. The non-GAAP financial information presented herein is provided in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP and should not be considered as alternatives to any performance measures derived in accordance with GAAP. A reconciliation of EBITDA, a non-GAAP financial measure, to its most directly comparable GAAP measure, can be found on slide 16 of this presentation. The distribution of this presentation in certain jurisdictions may be restricted by law. Those persons into whose possession this presentation comes are required to inform themselves about and to observe any such restrictions. Disclaimer 2
Record financial performance reflects strong aviation demand 3 Key 2025 Takeaways Core engine leasing and services platform operating at high utilization Willis Aviation Capital (“WAC”) creates scalable, fee-based growth engine Strong and flexible balance sheet through record $3.4B of capital markets and strategic activity Assets Under Management of $4.1B, and 11% growth, year over year
Delivered Strong Q4 and FY 2025 Financial Results Information as of December 31, 2025 unless otherwise denoted (1) As represented by WLFC Portfolio of Leased Assets, Notes Receivable, Investments in Sales-type Leases, Maintenance Rights, Appraised Value of Managed Portfolios and Leased Assets in Joint Venture portfolios as of December 31, 2025 (2) Calculated as LTM Net Income Attributable to Common Shareholders / average of Shareholder’s Equity as of December 31, 2024 and December 31, 2025 (3) Calculated as (total Debt Obligations - Cash and Cash Equivalents) / (Preferred Equity + Total Shareholder’s Equity) (4) Includers the LEAP variants, GTF, GEnx and Trent XWB 4 2025 revenue $730.2M With Q4 revenue of $193.6M 2025 Net Income Attributable to Common Shareholders $108M 2025 Adjusted EBITDA $459M Blended Annual Utilization 85% With over 1% On-lease rental factor Asset Under Management $4.1B1 With 55% modern technology assets4 Return on Equity 18%2 With $17.2M fee related revenue Net Debt / Equity 2.97x3
2024 2025 5 Consistent Growth Across Entire Platform Driven by continued strength of the aviation marketplace • Strong demand for surplus material as operators seek to extend the lives of their current generation engine portfolios • Spare parts inventory supports the growing Willis Lease portfolio of managed assets $213.9M • Recognized $44.5 million of long-term maintenance revenue compared to $39.4 million for 2024 • Short-term maintenance reserve revenues driven by growth in engines on short-term lease conditions, and the systematic, contractual increase in the hourly and cyclical usage rates on our engines $238.2M 2024 2025 • Growth driven by increase in average size of the portfolio and utilization of equipment held in our operating lease portfolio LEASE RENT MAINTENANCE RESERVE SPARE PARTS SALES 2024 2025 2025 $291.6M $232.0M $95.5M $37.7M $26.1M 22% 8% 44%
A Pioneer in Aviation Solutions Vertically integrated platform of aircraft engines, loan products and services businesses to solve airline planning, financing and maintenance needs (1) As represented by WLFC Portfolio of Leased Assets, Notes Receivable, Investments in Sales-type Leases, Maintenance Rights, Appraised Value of Managed Portfolios and Leased Assets in Joint Venture portfolios as of December 31, 2025 Principal source of revenue from Leasing and Maintenance Reserve revenue The Company uses services businesses to: • Manage the turn time and reduce maintenance expense for WLFC’s engines and aircraft • Predict on wing life and maintenance cost for owned engines • Monetize assets through the sale of parts • Generate additional revenue by providing each service for third parties 40-year history of consistently delivering profits • Positive net income every year as a public company • Purchased, leased and sold more engines in more countries over a longer period of time than any independent competitor Well positioned to enjoy a resurging market in engine and aircraft equipment and services • Growing $4.1B of AUM, of which 363 engines owned, primarily modern aircraft engines(1) • Portfolio comprises 86% narrowbody aircraft • 55% of our portfolio are modern technology assets Long-Standing Relationships with the World’s Leading Aviation Companies 6 Diverse Customer Groups Underpins Unique Industry Positioning and Differentiates WLFC From Traditional Aircraft Leasing Players
7 WAC Asset Management Capabilities Enhance WLFC Portfolio New division transforms WLFC from balance-sheet lessor to scaled aviation asset manager Blackstone Credit & Insurance Engine leasing >$1.0B Liberty Mutual Investments Funds growing credit strategy Up to $600M 50:50 Joint Ventures Willis Mitsui & Co CASC Willis Engine Leasing Co $626M Lease Managed Assets (1) Owned by airlines and investors $438M Enhanced transaction scale, enabling more programmatic investments and greater lessee diversification Supports balance sheet deleveraging Increases volume of aviation assets serviced across WLFC’s operating and JV businesses Generates additional recurring income streams • Management fees • Carried interest • Servicing revenues Provides competitive low-cost financing for our existing customer base Expands origination opportunities by allowing for larger single transactions (1) Leased Managed Assets are portfolios managed by WLFC but holds no equity investment in the assets (2) Willis Aviation Services Limited is our airframe maintenance facility in the UK and is certified to perform all C checks on 737NG and up to 6-year checks on A320CEO aircraft (3) Willis Aeronautical Services, Inc offers parts locator services and maintains a constantly changing inventory (4) Willis Mitsui & Co. Asset Management Limited provides independent aviation consultancy, advisory solutions, and technical services across a broad spectrum of engine types (5) Willis Engine Repair Center conducts maintenance repair and overhaul services on our owned engine portfolio and third-party assets in the USA and the UK (2) (3) (4) (5)
8 Scaling a Capital-Light Asset Management Platform Leveraging our industry-leading leasing and services platform to bring attractive returns to our partners and enhance enterprise value of WLFC (1) Does not include additional capacity at WLFC or Joint Ventures (2) Reflects committed capital as of December 31, 2025. (3) Leased Managed Assets are portfolios managed by WLFC but holds no equity investment in the assets (4) Investment partnership with Liberty Mutual Investments (5) Investment partnership with Blackstone Credit & Insurance Willis Aviation Capital WLFC 50/50 Joint Ventures $3B $626M $438M $600M(2) $1B+ (2) LMA(3) AUM: $4.1 B+(1) as of 12/31/2025 WLFC LMI(4) WLFC BX(5) $2.7B+ of deployed, committed and managed capital
9 A Unique Opportunity in Aviation (1) As represented by WLFC Portfolio of Leased Assets, Notes Receivable, Investments in Sales-type Leases, Maintenance Rights, Appraised Value of Managed Portfolios and Leased Assets in Joint Venture portfolios as of December 31, 2025 Pioneer and market leader with seasoned leadership team in the most desirable sector of commercial aviation Growing $4.1B (1) AUM portfolio of primarily modern aircraft engines servicing the most in-demand aircraft in the industry, diversified across OEMs, engine and aircraft type, lessee and geography Vertically integrated platform enables WLFC to provide liquidity, assets and reduced maintenance expenses to customers and extract maximum value from the portfolio Consistent track record of revenue, profitability and cash flow generation, with record results delivered in 2025 Strong balance sheet and a large, diverse pool of leading financial partners through WAC, enhancing enterprise value and liquidity Large pipeline provides significant go forward growth and investment opportunities Amplified aircraft and Engine OEM supply chain issues are a tailwind for leased engine demand
10 Appendix
11 Quarterly and Full Year Statements of Income 1
12 Consolidated — Quarterly and Full Year Statements of Income (unaudited) in (000s) Q1 2025 Q2 2025 Q3 2025 Q4 2025 YTD 2025 Lease Rent Revenue $ 67,739 $ 72,268 $ 76,552 $ 75,074 $ 291,633 Maintenance Reserve Revenue 54,859 50,743 76,054 50,324 231,980 Spare parts and equipment sales 18,240 30,354 5,394 41,495 95,483 Interest revenue 3,934 3,649 3,360 3,150 14,093 Gain on sale of leased equipment 4,437 27,582 16,134 5,872 54,025 Gain on sale of financial assets 378 - - - 378 Maintenance services revenue 5,586 8,031 3,636 8,239 25,492 Other revenue 2,559 2,875 2,259 9,464 17,157 Total Revenue $ 157,732 $ 195,502 $ 183,389 $ 193,618 $ 730,241 Depreciation and amortization expense 25,024 27,550 28,662 30,317 111,553 Cost of spare parts and equipment sales 15,323 28,102 6,684 42,162 92,271 Cost of maintenance services 5,329 8,621 5,135 8,833 27,918 Write-down of equipment 2,109 11,458 10,201 9,179 32,947 General and administrative 47,720 50,429 49,190 47,396 194,735 Technical expense 6,230 7,508 8,352 9,294 31,384 Net finance costs 32,094 33,569 37,140 32,338 135,141 Total Expenses $ 133,829 $ 167,237 $ 145,364 $ 179,519 $ 625,949 Income from Operations 23,903 28,265 38,025 14,099 104,292 Gain on sale of business - 42,950 - - 42,950 Income from Joint Ventures 1,351 3,082 5,192 3,740 13,365 Income Before Income Taxes $ 25,254 $ 74,297 $ 43,217 $ 17,839 $ 160,607 Income tax expense 8,385 13,920 18,893 5,651 46,849 Net Income $ 16,869 $ 60,377 $ 24,324 $ 12,188 $ 113,758
13 Consolidated Balance Sheets 2
14 Consolidated Balance Sheets in (000s) December 31, 2025 December 31, 2024 Cash and cash equivalents $ 16,441 $ 9,110 Restricted cash 530,500 123,392 Equipment held for operating lease, less accumulated depreciation 2,801,683 2,635,910 Maintenance rights 30,632 31,134 Equipment held for sale 20,509 12,269 Spare parts inventory 56,577 72,150 Property, equipment & furnishings, less accumulated depreciation 73,835 48,061 Intangible assets, net 271 2,929 All Other Assets 405,867 362,241 Total Assets $ 3,936,315 $ 3,297,196 Debt, net 2,700,338 2,264,552 All Other Liabilities 510,439 420,184 Total Liabilities $ 3,210,777 $ 2,684,736 Redeemable preferred stock ($0.01 par value) 63,401 63,122 Total shareholders’ equity $ 662,137 $ 549,338 Total liabilities, redeemable preferred stock and shareholders’ equity $ 3,936,315 $ 3,297,196
15 Reconciliation of Non-GAAP Measures 3
16 Adjusted EBITDA Reconciliation (unaudited)(1) FY 2025 and FY 2024 (1) We define Adjusted EBITDA as net income attributable to common shareholders, excluding (i) income tax expense, (ii) interest expense, (iii) preferred stock dividends/costs, (iv) loss on debt extinguishment, (v) depreciation and amortization expense, (vi) stock compensation expense, (vii) write-down of equipment, (viii) acquisition, financing and divestitures related expenses, and (ix) other items not indicative of our ongoing operating performance in (000s) FY 2025 FY 2024 Net income attributable to common shareholders $ 108,066 $ 104,378 Add: Income tax expense 46,849 44,033 Add: Interest expense 132,060 104,764 Add: Preferred stock dividends/costs 5,692 4,234 Add: Loss on debt extinguishment 3,081 --- Add: Depreciation and amortization expense 111,553 92,460 Add: Stock compensation expense (2) 44,566 29,247 Add: Write-down of equipment 32,947 11,228 Add: Acquisition, financing and divestitures related expenses 3,495 1,449 (Less) Add: Other (3) (29,197) 1,881 Adjusted EBITDA: $ 459,112 $ 393,674 (2) In 2025, upon the resignation of our former General Counsel, $5.3 million of stock compensation expense relates to the acceleration of vesting of shares. (3) In 2025, the Company recognized $43.0 million in relation to the gain on sale of the Bridgend Asset Management Limited business. In 2025 and 2024, the Company recognized $13.8 million and $1.9 million, respectively, in non-recurring project expenses associated with the sustainable aviation fuels project.