DALLAS, TX -- November 13th, 2025 -- Sky Harbour Group Corp. (NYSE: SKYH): Stonegate Capital Partners updates their coverage on Sky Harbour Group Corp. (NYSE: SKYH). Sky Harbour sustained solid momentum in 3Q25 as it continued to scale and transition from development to cash-generating operations. The Company is now conducting resident flight operations at nine campuses, including fully operational sites at Sugar Land (SGR), Nashville (BNA), Miami Opa-Locka (OPF), San Jose (SJC), Camarillo (CMA), Phoenix Deer Valley (DVT), Dallas Addison (ADS), Seattle Boeing Field (BFI), and Denver Centennial (APA), while additional Tier 1 locations such as Bradley (BDL), Dulles (IAD), Orlando Executive (ORL), Salt Lake City (SLC), Portland-Hillsboro (HIO), and Long Beach (LGB) advance through development and pre-leasing. Constructed assets and construction in progress increased to more than $308.0M at quarter-end. Management also strengthened the capital stack, signing a JV letter of intent on an SH34 hangar at OPF Phase 2, together providing flexible, lower-cost funding to support the next wave of growth.
Company Updates:
Occupancy and Revenue: For 3Q25, Sky Harbour reported consolidated revenue of ~$7.3M, up 78% y/y and 11% sequentially, as additional campuses ramped. Rental revenue increased to roughly $5.7M and fuel revenue to about $1.6M, driven by higher utilization at both stabilized and recently opened sites. Stabilized campuses generally remained at or near full occupancy, while ADS and DVT moved past the 50% leased threshold and APA began contributing with initial leases. Pre-leasing activity at future developments, notably BDL and IAD, continued to secure early commitments without material pricing concessions, reinforcing the demand and pricing power.
Construction and Development: Constructed assets and construction-in-progress rose to more than $308M at quarter-end, supported by ongoing investment at Phoenix Deer Valley, Dallas Addison, Denver Centennial, and Miami Opa-Lock Phase 2. ADS received final certificates of occupancy and became fully operational, while APA commenced resident flight operations as it neared completion, marking a shift from construction to income generation at both campuses. OPF Phase 2 remains on schedule for completion in 2Q26, Bradley broke ground with targeted delivery in 4Q26, and site work advanced at Salt Lake City and other Tier 1 locations including Orlando Executive, Portland- Hillsboro, and Long Beach. Sky Harbour continues to leverage its vertically integrated platform, including Ascend Aviation Services and Stratus Building Systems, to enhance quality control, manage per-square-foot costs, and improve delivery timelines across the network.
Margins and Profitability: Gross margin was 13.5% in 3Q25, compared to 10.2% in 3Q24 and (2.0)% in 2Q25. Operating loss widened to $(7.7)M from $(4.8)M in the prior-year quarter. Net income attributable to common shareholders was $(1.9)M, or $(0.06) per diluted share. Adjusted EBITDA remained negative but improved on a run-rate basis.
Balance Sheet and Guidance: Sky Harbour ended 3Q25 with ~$48.0M in consolidated cash, restricted cash, and U.S. Treasuries. The new $200 million tax-exempt warehouse facility, expandable to $300 million, offers draw-as-needed flexibility at an attractive fixed rate with no prepayment penalty, and was undrawn at quarter-end, preserving capacity to fund 5–6 upcoming developments across Tier 1 airports.
Valuation: We use a Discounted Cash Flow Analysis to guide our valuation of SKYH. Our DCF analysis produces a valuation range of $12.81 to $19.93 with a mid-point of $15.74. This analysis relies on a range of discount rates between 8.75% and 9.25% with a midpoint of 9.00% and accounts for SKYH's debt being assumable, which has an estimated blended interest rate of 4.25%.
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