Will Waller's questions to Willis Lease Finance Corp (WLFC) leadership • Q2 2025
Question
Will Waller of M3F, Inc. questioned the significant drop in long-term maintenance reserve revenue compared to previous quarters and the corresponding increase in the maintenance reserve liability, asking if lease extensions were a primary factor. He also inquired about the timing and income statement impact of government grants for the sustainable fuel project.
Answer
CEO Austin Willis explained that the low long-term maintenance revenue was primarily due to the timing of engines coming off lease rather than an unusual number of extensions. CFO Scott Flaherty added that core short-term maintenance revenue grew nearly 10% and the liability growth represents future income. Regarding the grants, Flaherty confirmed that a grant exceeding $6 million was received and recognized in Q2, while another awarded grant of over $4 million will be recognized upon receipt, with the majority of project costs having been incurred in Q1.