Sky Harbour Group Corp (SKYH)·Q1 2025 Earnings Summary

Executive Summary

• Q1 revenue accelerated to $5.593M, up 133% year over year and 20% sequentially; GAAP net loss improved to $(9.126)M and EPS to $(0.19) from $(0.78) a year ago .
• Liquidity remained strong with $97.4M in consolidated cash and U.S. Treasuries; net cash used in operating activities was $5.1M due partly to start-up costs for new campuses and timing of payables .
• Management reiterated year-end 2025 target for run-rate breakeven operating cash flow/Adjusted EBITDA; updated 2025 ground-lease signing plan to five additional new leases (total 23 by YE 2025) from six previously .
• Key near-term catalysts: lease-up of Phoenix (DVT), Dallas–Addison (ADS), and Denver (APA) with a 4–6 month lease-up cycle, plus an expected $150–$175M private-activity debt issuance; experiment with selective pre-leasing could pull forward visibility and de-risk ramps .

What Went Well and What Went Wrong

• What Went Well

  • Material top-line inflection: Total revenue rose 133% YoY to $5.593M, reflecting CMA (Camarillo) acquisition contribution, SJC ramp, and higher occupancy/pricing in BNA/OPF; sequential revenue +20% vs Q4 .
  • Execution and scale: DVT opened in Q1; ADS and APA near completion with initial leases signed; management intensified vertical integration (design/engineering/GC) and construction leadership to speed builds, cut costs, and improve quality. “Sky Harbour is entering a new phase… the company is gearing for scale” (CEO) .
  • Liquidity and funding path: ~$97.5M cash/T-bills, bonds rallying; company reconfirmed plan for tax-exempt financing and is tracking a $150–$175M issuance for growth .

• What Went Wrong

  • Operating cost pressure from growth: Operating expenses rose due to start-up hiring at ADS/APA/DVT, full-quarter operations at CMA, and fuel recorded gross at CMA; CFO cited ~$1.5M increase with ~1/3 from fuel accounting, plus AP timing impacted cash from operations .
  • Quarterly cash burn: Net cash used in operating activities was $5.1M in Q1 (consolidated), though management expects step-ups in revenue/cash flow with new campus lease-ups .
  • Guidance tightening on site wins: 2025 new ground-lease target adjusted to five additional (from six) to reach 23 by YE 2025; execution remains the main risk as volume scales .

Financial Results

Income summary (GAAP; $USD thousands unless noted)

Revenue mix ($USD thousands)

Select KPIs and liquidity

Additional notes:

• Consolidated revenue +133% YoY, +20% QoQ; OG revenue +24% YoY .
• Large non-cash warrant MTM affected Q1 2024 loss; still a $(2.528)M non-cash warrant loss in Q1 2025 .

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Sky Harbour is entering a new phase… the company is gearing for scale.” — Tal Keinan, CEO .
• “Of the $1.5 million increase [in operating expenses], approximately 1/3… relates to an increase in our reported fuel expenses… Two other impactful factors include our start-up expenses… and a full quarter of operations at Camarillo.” — Michael Schmitt, CAO .
• “We continue to enjoy strong liquidity with approximately $97.5 million of cash in U.S. treasuries… we stand by our expectation that future debt service coverage ratios… will exceed [original forecasts].” — Tim Herr, Treasurer .
• On competition: “It’s probably my biggest concern… [but] we have a much better chance of maintaining our lead as time goes by.” — CEO .

Q&A Highlights

• Funding plan: Company is “tracking $150–$175 million” for the next tax-exempt debt issuance; dual-tracking bank term facilities as an alternative given market conditions .
• Leasing dynamics: Testing selective pre-leasing at one airport; re-leases fetching 20–30% premiums; brand awareness increasing inbound demand .
• Occupancy: “Effective” occupancy can exceed 100% in semiprivate configurations; Miami/Houston above 100% .
• Cost/inputs: No project delays from supply chain/tariffs; pre-purchased steel in February; vertical integration reduces exposure .
• Market focus: New York economics attractive (double-digit yield on cost); also strong opportunities in FL/CA/TX; site acquisition remains deepest moat .

Estimates Context

• No S&P Global (Capital IQ) consensus EPS or revenue estimates were available for Q1 2025 at the time of this analysis; as a result, we cannot assess beat/miss vs. Street consensus (company does not provide quarterly EPS guidance).

Key Takeaways for Investors

• Revenue inflection is underway: Q1 revenue +133% YoY and +20% sequential, with additional step-ups expected as ADS/APA fully open and lease .
• Liquidity provides runway: ~$97.4M cash/T-bills supports construction ramp and bridging to debt financing; OG produced $1.0M positive operating cash in Q1 .
• Execution is the swing factor: Vertical integration should improve yield-on-cost and speed, but demands flawless delivery and leasing at rising volumes .
• Funding catalyst: A $150–$175M tax-exempt debt issuance (or bank alternative) is a key 2025 milestone to fund the next wave of campuses .
• Pricing power intact: Re-leasing premiums and “effective” >100% occupancy in semiprivate hangars underscore differentiated value, supporting rent growth .
• Guidance watch: Breakeven run-rate by YE 2025 reaffirmed; 2025 ground-lease additions adjusted to five (total 23), focusing on the highest-revenue locations .
• Trading lens: Near-term stock moves likely hinge on (1) pace/quality of lease-up at DVT/ADS/APA, (2) debt deal execution and cost, and (3) evidence that vertical integration lowers unit costs without delaying timelines .

Notes on sources:

• Q1 2025 10‑Q (financial statements) .
• Q1 2025 press releases (results, HIO ground lease, pre‑announce) .
• Q1 2025 earnings call (prepared remarks and Q&A) –.
• Prior quarters for trend: Q4 2024 press release/transcript/slides and Q3 2024 press release/transcript – – – – –.

Disclosure: No 8‑K 2.02 filing was identified for Q1 2025; core primary sources were the Q1 2025 10‑Q, earnings call transcript, and company press releases as cited above.