Institutional flows into Western Equipment Finance have ticked higher since April, with hedge funds favoring the firm’s diversified lease portfolio. Sector-wide data indicate equipment finance index growth at 3.8% YoY, supporting bullish sentiment and potential stock breakouts above the $35 resistance. In the absence of other Arc7s, Novatek has relied on a group of sanctioned vessels — including the Buran, Zarya, Voskhod, and Iris. These are ice-strengthened or ice-reinforced (Arc4) vessels, meaning they can handle some ice conditions but are not capable of independent, year-round navigation in the Arctic. Their operations are effectively limited to the navigation season of the Northern Sea Route, typically from April to October, when ice conditions are less severe. Outside this window, they cannot guarantee safe passage without icebreaker assistance, making them a stopgap solution until more Arc7 vessels are delivered. “A lot of my customers are harvesters. A lot of my vendors that sell equipment are part of that,” David said. Leasing rates for construction equipment rose 2.7% in Q2, boosting Western Equipment Finance’s margins. Demand is especially strong in infrastructure projects tied to federal funding disbursements.
