Executive Summary

Q2 2025 revenue rose 82% year over year and 18% sequentially to $6.588M, driven by the Camarillo acquisition and higher occupancy at existing campuses; rental revenue was $5.225M and fuel revenue $1.363M . Net income was $14.356M, entirely driven by a $21.8M non‑cash warrant fair value gain; operating loss (EBIT) was $(7.528)M and adjusted EBITDA was $(3.016)M .
Operating cash outflow improved to approximately $(0.9)M for the quarter vs $(5.0)M in Q1; management reaffirmed guidance to reach consolidated operating cash‑flow breakeven by year‑end 2025 as APA, ADS, DVT and BFI ramp .
Announced an expected $200M, 5‑year tax‑exempt bank “warehouse” facility at 80% of 3‑month SOFR + 200 bps (indicative ~5.47%), closing on or about Aug 28, to fund 5–6 next airport projects; longer‑term plan to term out with PABs in 3–4 years .
Strategic highlights: higher‑than‑forecast revenue per square foot at stabilized campuses; first pre‑leases at BDL and IAD with above‑target revenue rates; vertical integration across manufacturing (Stratus) and construction (Ascend) to improve quality, speed, and cost .

What Went Well and What Went Wrong

What Went Well

Higher‑than‑forecast revenue per square foot at stabilized campuses; re‑leases capturing inflation and brand premium (e.g., Miami leases rising from ~$32 to ~$46 per RSF, with Phase 2 expected higher) .
Pre‑leasing pilot success at BDL and IAD: signed deposits and “introductory pricing” while still above target per‑square‑foot revenue, reducing lease‑up time and enabling customized improvements during construction; management expects more pre‑leasing .
Obligated Group positive operating cash flow of ~$2.2M in Q2, up 117% q/q, supporting bond coverage as new campuses lease up . Quote: “Cash flow from operations generated a positive $2,200,000 in the quarter and we expect this number to continue to increase…” .

What Went Wrong

Core operations remain loss‑making: operating loss (EBIT) widened to $(7.528)M vs $(4.958)M in Q2 2024 as ground lease expense and campus operating costs rose ahead of revenue from new sites .
Fuel expenses and fuel revenue recognized gross at Camarillo added cost volatility; fuel expenses jumped to $0.923M vs $0.082M in Q2 2024, while fuel revenue increased to $1.363M .
Construction costs elevated by prior hangar design retrofits ($26–$28M aggregate) and steel tariff headwinds; while mitigated by pre‑purchases and vertical integration, these factors increased project costs and extended build timelines by 3–5 months at APA, DVT, ADS .

Financial Results

Metric	Q2 2024	Q2 2025
Total Revenue ($USD Millions)	$3.618	$6.588
Rental Revenue ($USD Millions)	$3.174	$5.225
Fuel Revenue ($USD Millions)	$0.444	$1.363
Operating Income (EBIT) ($USD Millions)	$(4.958)	$(7.528)
Net Income ($USD Millions)	$4.163	$14.356
Basic EPS ($)	$0.23	$0.52
Diluted EPS ($)	$0.06	$0.18
Adjusted EBITDA ($USD Millions, non‑GAAP)	$(2.063)	$(3.016)
Sequential Revenue Change (%)	—	+18% (management)

Revenue composition and margin drivers:

YoY revenue growth (+82%) primarily from Camarillo (CMA) acquisition and increased occupancy at BNA, OPF, SJC; fuel revenue increased 207% YoY, mainly CMA recognized on a gross basis .
Operating expenses increased across campus operating, ground leases (+59% YoY), depreciation (+130% YoY), and employee compensation (+26% YoY), reflecting staffing and leases ahead of full revenue ramp at DVT, ADS, APA .

Cash flow and liquidity:

Net cash used in operating activities: ~$(0.9)M in Q2 (vs $(5.0)M Q1), with consolidated cash and U.S. Treasuries ~$75M at 6/30/25; Obligated Group cash + Treasuries $37M .
Planned $200M tax‑exempt drawdown facility to fund next projects, with equity including $32M Camarillo contribution; total funding capacity >$300M .

Segment breakdown (company reports one segment):

Rental vs Fuel revenue disclosed above; Sky Harbour operates a single consolidated segment .

KPIs (operations, lease‑up, per RSF economics):

Campus	Occupancy	Rentable SF	Revenue per RSF ($)	Notes
SGR (Houston)	100%	66,080	$21.22	Stabilized
BNA (Nashville)	89%	149,069	$33.47	Stabilized
OPF 1 (Miami)	100%	160,092	$39.25	Phase 2 in construction
SJC (San Jose)	100%	50,431	$79.65	Renovation
CMA (Camarillo)	78%	121,931	$31.33 (adj. for unoccupied)	Acquired Dec 2024
BFI (Seattle)	42%	89,609	$24.83	Early lease‑up
DVT 1 (Phoenix)	25%	134,270	$29.73	Certificate of Occupancy obtained
ADS 1 (Dallas)	27%	120,836	$24.35	Certificate of Occupancy obtained
APA 1 (Denver)	13%	132,000	$39.97	CO obtained; operations commencing

Management targets new campuses (DVT, ADS, APA) at “100%+ expected within 6 months” (stacking in semi‑private hangars can exceed 100% occupancy) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated operating cash‑flow breakeven	YE 2025	Breakeven by YE 2025	Reaffirmed; Q2 op cash outflow ~$(0.9)M; Q1 $(5.0)M	Maintained
New ground leases	2025 year‑end	5 additional by YE 2025	Reaffirmed; total portfolio expected 23 airports by YE 2025	Maintained
New campus revenue run‑rate	Within 6 months post‑CO	Meet campus run‑rate targets	Reaffirmed for Denver, Dallas, Phoenix; first six leases executed, additional LOIs	Maintained
OPF Phase 2 completion	Q2 2026	—	Under construction; completion expected by Q2 2026	New specific timing
Capital formation	Near‑term	Dual‑tracking bank vs PABs	Pursuing $200M, 5‑year tax‑exempt bank warehouse; plan to term out with tax‑exempt bonds in 3–4 years	Strategy shift short‑term; longer‑term maintained
Debt service coverage (OG)	Ongoing	Coverage expected to exceed original	Positive operating cash flow; increasing coverage as campuses lease up	Positive trajectory

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Vertical integration (Stratus manufacturing, Ascend construction)	Expanding in‑house PEMB manufacturing, GC/CM; aims: quality, speed, cost; retrofits increased cost/time	Organization scaled; Ascend led by Phil Amos; manufacturing only for Sky Harbour 37; hybrid GC/CM model; procurement at scale	Executing; capacity/time savings expected
Pre‑leasing strategy	Experimenting with pre‑leasing; pricing leverage better at CO	Pilot at BDL & IAD: signed leases with deposits; above‑target revenue/RSF; more pre‑leasing expected	Adoption increasing
Operations/service model differentiation	Centralized ops leadership; security, efficiency; resident evangelism; fewer movements than FBOs	National Directors for Line Training/Facilities/GSE; surveys show service as key differentiator; focus on “bulletproof” safety/security/efficiency	Strengthening
Tariffs/supply chain	Steel tariff reimposition noted; pre‑purchased steel; mitigations	Tariffs effective Mar 12, 2025; continued cost vigilance; structure GMP with shared savings	Manageable headwind with mitigations
Financing strategy	Dual‑tracking PABs vs bank term; targeting $150–$175M PABs; interest ~SOFR+200 for bank alternatives	Pursuing $200M bank warehouse at 80% SOFR +200bp; plan to bond out in 3–4 years; flexibility in sequencing	Near‑term bank; long‑term bonds
Revenue capture & RSF economics	SHER rising vs 2022 CBRE; re‑lease premiums; runway to $190M realizable revenue	Weighted average rent/RSF exceeds projections; re‑leases step up 20–30%; potential $140M→$200M revenue capture by YE	Improving

Management Commentary

“We expect a step function increase in revenues in Q3 and Q4 and into the New Year as these three campuses are leased up and rent and fuel revenues commence to flow.”
“Preleasing… may end up being a key component of the leasing strategy going forward… we like the pricing… above our target revenues for those airports.”
“We’ve gone… to a really not minor construction company… dedicated only to manufacturing Sky Harbour 37 hangars across the country… increase quality, accelerate pace… lower per square foot cost.”
“What most people come back to is the service… our best evangelist… we need to be absolutely bulletproof on safety, security, and efficiency.”
On financing: “$200,000,000 five year tax exempt… floating rate equal to 80% of three months SOFR plus 200 basis points… we like the risk transfer of construction risk away from our permanent bond program.”

Q&A Highlights

Scale benefits: SG&A largely fixed; as DVT, ADS, APA ramp, operating leverage improves; biggest scale gains expected in development costs .
Revenue drivers: higher rents due to scarcity, fuel margin capture, semi‑private stacking enabling >100% occupancy per hangar footprint .
Pre‑leasing economics: “introductory pricing advantage” for blue‑chip tenants yet above targets; more pre‑leasing likely .
Ground lease accounting: immediate expense recognition under GAAP upon lease signing (e.g., HIO and Stuart/“Hillsboro and Stuart International” in Q2), affecting quarterly OpEx .
Debt facility rationale: drawdown reduces negative arbitrage vs upfront bonds; floats with potential rate cuts; shifts construction risk from bond program .
Electric aviation readiness: campuses pre‑wired; regulatory shifts help, but pace gradual; no near‑term acquisition of additional trades beyond manufacturing/GC .

Estimates Context

Wall Street consensus (S&P Global) for Q2 2025 revenue and EPS was unavailable; the S&P Global feed returned no estimates or counts for SKYH across Q4 2024–Q2 2025. Given reaffirmed breakeven guidance and faster lease‑up via pre‑leasing, Street models may need to reflect higher near‑term rental revenue and improved operating cash flow trajectory as APA/ADS/DVT ramp and Obligated Group cash flow strengthens . Values retrieved from S&P Global.

Metric	Q2 2025 Consensus	Q2 2025 Actual
Revenue ($USD Millions)	N/A*	$6.588
Diluted EPS ($)	N/A*	$0.18

Values retrieved from S&P Global.*

Key Takeaways for Investors

Leasing momentum and pricing power: stabilized campuses are outperforming forecast per RSF, and re‑leases capture inflation/brand premium; near‑term catalysts are rapid lease‑up at APA, ADS, DVT aided by pre‑leasing .
Vertical integration is the linchpin: Ascend + Stratus should compress schedules and reduce unit costs over time, which expands the addressable airport set and supports yield on cost; watch for tangible cost/time metrics in H2/H1’26 .
Cash‑flow inflection path intact: Q2 operating cash burn improved materially; breakeven by YE 2025 reaffirmed; Obligated Group already at positive op cash flow, supporting bond coverage .
Financing flexibility lowers execution risk: $200M tax‑exempt warehouse facility provides draw‑as‑needed funding, reduces negative arbitrage, and defers equity funding; plan to term out with PABs in 3–4 years .
Construction and tariff risks persist but mitigated: 2024–2025 retrofits and steel tariffs raised costs; management offset via pre‑purchases, GMP shared‑savings, and procurement at scale .
Service moat is widening: centralized ops and resident feedback loop strengthen stickiness; security/efficiency features differentiate vs FBOs, enabling premium pricing .
Near‑term trading lens: catalysts include facility close (Aug 28), campus lease‑up milestones (six‑month targets), additional pre‑lease announcements, and OPF Phase 2 progress; monitor warrant volatility’s non‑cash impact on GAAP net income .

Appendix: Additional Data Points

Q2 2025 variable payments included in revenue: rental $0.411M; fuel $0.616M .
Future minimum tenant lease payments (non‑cancelable) total $62.595M (schedule disclosed) .
Portfolio in operation at 6/30/25: 52 hangars, 892,318 rentable SF, weighted occupancy 68.9% (early ramp sites included) .

All statements and figures are sourced from the company’s Q2 2025 press release and Form 8‑K, Q2 2025 10‑Q, Q2 2025 earnings call transcript, and Q2 2025 earnings slides as cited above.

Sky Harbour Group Corp (SKYH)·Q2 2025 Earnings Summary