Willis Lease Finance Corporation (WLFC) Cash Flow Statement

A persistent OCF-to-net-income multiple well above 1.0 suggests that depreciation of roughly $24M to $31M per quarter and other non-cash charges are a large driver of reported cash generation relative to accounting earnings. The 2026Q3 spike, with operating cash of $104.8M against net income of only $11.7M, appears linked to a $43.3M working capital contribution, so investors should monitor whether that release reverses in coming periods.

Free cash flow was negative in six of the ten quarters shown, and capex consumed well over 100% of revenue in several periods, pointing to an aircraft acquisition program that absorbs operating cash and more. The alternating sign of capex, including a $310.6M inflow in 2025Q4, suggests that aircraft disposal proceeds or timing of asset sales materially distort quarterly FCF, so the underlying trajectory is better judged over multiple quarters.

Depreciation of roughly $24M to $31M per quarter provides a rough benchmark for maintenance-level reinvestment, and capex running at several times that level points to growth fleet additions rather than replacement alone. This pattern implies that returns depend on lease placement of newly acquired aircraft, and investors should monitor whether utilization and lease rates justify the elevated spending.

Capital returned to shareholders through dividends and buybacks is small relative to operating cash generation, suggesting that cash is largely retained to fund fleet expansion and acquisitions. Buybacks spiked to $25.0M in 2026Q2 while free cash flow was positive, which may indicate opportunistic capital return, though its sustainability depends on whether negative FCF periods recur.

The persistent difference between operating cash and free cash indicates that reported operating cash generation is being reinvested rather than distributed or retained as surplus. Investors should weigh whether the aircraft portfolio ultimately generates returns sufficient to justify sustained capital consumption, since the cash flow statement alone does not confirm asset-level profitability.