WLFC

Willis Lease is a niche aircraft-engine lessor printing some of the best operating results in its history. FY2024 revenue grew 36% to $569M, operating income jumped 125% to $144M (25.4% operating margin), and diluted EPS surged 146% to $15.34, driving ROE to a healthy 19.8%. Net income has compounded from $43.8M (FY2023) to $109M (FY2024) after years stuck in single digits ($9.75M, $3.35M, $5.44M in 2020-2022), so this is a genuine inflection, not a flat trend. The 10-K backs the demand story: a portfolio of 363 engines, 20 aircraft, $2,801.7M of equipment on operating lease across 69 lessees in 37 countries, plus a vertically integrated parts arm (Willis Aero, $56.6M inventory) and two 50/50 JVs (WMES, CASC Willis). With OEMs behind on new-aircraft delivery, lessors that own popular Stage IV CFMI/GE/PW/RR/IAE engines are in structurally tight supply — exactly the assets WLFC owns.

Valuation is undemanding for this growth: P/E of 14.7 on $15.34 EPS and P/S of 2.6 at a $1.49B cap, against earnings that more than doubled. That is the core of the buy case — the market is paying a below-market multiple for a business at the top of its operating cycle in a favorable supply environment. Operating cash flow of $284M dwarfs the $15.6M of true capex (asset purchases run through investing, not opex), and the company is returning cash via $11.6M buybacks and $10.7M dividends.