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Sky Harbour Group Corp (SKYH)·Q4 2024 Earnings Summary

Executive Summary

  • Sky Harbour reported record full-year 2024 results, with consolidated revenues up 95% YoY and strong liquidity of $127 million in cash and U.S. Treasuries at 12/31/24; management reiterated guidance to reach run-rate breakeven operating cash flow/Adjusted EBITDA by Q4 2025 .
  • Q4 2024 sequential revenue increased 13% vs Q3, driven by lease optimization across operating campuses and three weeks of Camarillo operations; operating expenses rose on pre-opening staffing and noncash ground lease accruals ($1.4 million in Q4) .
  • Strategic expansion continued: new ground lease at Seattle’s Boeing Field (BFI; ~90,000 RSF), Phoenix campus opened in Q1 2025, with Denver (APA) and Dallas (ADS) openings imminent, and strong leasing momentum (first leases signed in Phoenix and Dallas; 4–6 month lease-up expected) .
  • Financing runway: completed ~$75 million PIPE equity in late 2024; pursuing ~$150 million private activity debt issuance in summer 2025 with active investor interest and a path to investment-grade ratings; obligated group DS coverage tests in compliance .
  • Estimates context: S&P Global consensus EPS and revenue estimates for Q4 2024 were unavailable; comparisons vs Street cannot be provided (see Estimates Context section).

What Went Well and What Went Wrong

What Went Well

  • Strong top-line momentum and liquidity: full-year consolidated revenues +95% YoY; cash and U.S. Treasuries at $127 million; obligated group revenues +51% YoY and positive operating cash flow of $6.5 million .
  • Strategic expansion and operational ramp: executed BFI ground lease (~90,000 RSF); Phoenix opened in Q1; Denver and Dallas opening in Q2; first tenant leases signed in Phoenix and Dallas; active pre-leasing in Denver; 4–6 month lease-up targeted .
  • Management reaffirmed breakeven timeline and articulated scalable cost/speed improvements with RapidBuilt and standardization (“Sky Harbour 37” prototype); CEO emphasized focus on best airports and growing brand with premier residents .

What Went Wrong

  • Limited quarter-specific disclosure: Q4 did not provide GAAP quarterly revenue/EPS figures; only directional sequential growth and noncash expense drivers, constraining precise margin and EPS analysis .
  • Operating expenses elevated by pre-opening staffing and noncash ground lease accruals ($1.4 million in Q4; higher San Jose ground lease burden), pressuring near-term profitability until campus ramp offsets .
  • Minor disclosure inconsistency: March 27 press release references a PIPE “In Q4 2025,” while the equity raise second closing occurred December 23, 2024; investors should rely on the December 2024 release for timing and proceeds (~$75.2 million) .

Financial Results

Consolidated and Key Operating Metrics

MetricQ2 2024Q3 2024Q4 2024
Revenue Sequential Growth (%)N/AN/A+13%
Noncash Ground Lease Expense ($USD Millions)$1.1 $1.3 $1.4
Cash and U.S. Treasuries ($USD Millions)$150 $110 (Cap + HoldCo) $127

Notes:

  • Q4 2024 consolidated revenue/EPS/margins were not disclosed in dollar terms; management provided sequential growth and expense drivers .
  • S&P Global consensus estimates were unavailable for EPS/revenue (see Estimates Context).

Obligated Group Highlights (FY context relevant to Q4 ramp)

MetricFY 2023FY 2024
Revenues YoY Change (%)—+51%
Operating Cash Flow ($USD Millions)-$1.4 +$6.5
Cash and U.S. Treasuries ($USD Millions)—$66.3
DS Coverage Tests—In compliance

Segment/KPI Snapshot

KPIQ4 2024
Camarillo (CMA) Occupancy (%)68% (remaining hangar expected to rent by summer)
BFI Lease Size (RSF)~90,000 in four structures
Lease-Up Duration (New Campuses)4–6 months
“Realizable Revenue” Capture ($USD Millions)~$140 current; ~$190 target by YE 2025

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Run-rate Breakeven Operating Cash Flow/Adjusted EBITDA (Consolidated)FY 2025“Fall 2025” breakeven “Q4 2025” breakeven reiterated Narrowed timing (maintained)
Total Airport Ground LeasesYE 202523 airports by YE 2025 Reiterated 23 airports; six additional ground leases to be announced by YE 2025 Maintained total; clarified adds
New Campus OpeningsQ1–Q2 2025DVT/APA/ADS on schedule DVT opened Q1; APA/ADS opening in coming weeks Execution progressing
Lease-Up for New Campuses2025Not specified4–6 months New explicit guidance
Private Activity Bonds (PAB)Summer 2025~$150m “early next year” dual-track bank/bond ~$150m issuance expected this summer; investor interest; pursuing IG ratings Timing clarified/affirmed

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Site Acquisition PacePipeline expansion; SLC lease; target best airports; raise guidance to 22 by YE 2025 Revised to 23 airports by YE 2025; emphasis on best airports and revenue density BFI lease executed; six more ground leases targeted by YE 2025 Accelerating, consistent with 23 by YE 2025
Standardization/RapidBuiltSky Harbour 37 prototype finalized; RapidBuilt configured; economies of scale Continued standardization and in-sourcing; quality/speed/cost focus Cost/time savings (e.g., $32–33/sf metal building margin); procurement scale benefits; two shifts planned Scaling and cost-down actions advancing
Leasing StrategyNDA limits; brand awareness rising; semi-private boosts revenue density Staggered leases, 20%+ step-ups on renewals; brand with premier flight departments First leases in Phoenix/Dallas; pre-leasing in Denver; 4–6 month lease-up; pricing leverage strongest on standing product Healthy demand; pricing power intact
Fuel Revenues ReportingSan Jose step-function; consolidated SG&A includes stock comp; ground lease accrual Noncash items detailed; warrant fair value major driver of GAAP loss First-time separate reporting of fuel revenues; plans to break out MAGs (minimum amount guarantees) Transparency increasing
DS Coverage/BondsLongest bond ~5.35%; path to IG ratings; dual-track debt ~$150m Bond yields improving; coverage expected > initial projections 2024 DS tests in compliance; 2025 DS coverage calc disclosed; investor interest; potential low-5% yields on new issue Strengthening credit metrics
Tariffs/MaterialsNot highlightedNot highlightedSteel price hikes noted; preorders mitigated impact Managed exposure
Macro/TaxNot highlightedRelative cycle-insensitivity; bonus depreciation tailwind possible Bonus depreciation rumors could spur fleet upgrades; larger jets favor SH model Potential tailwind

Management Commentary

  • “We continue to enjoy strong liquidity with about $127,000,000 of cash and U.S. Treasury bills.” (CFO)
  • “Adjusted EBITDA… provides a view of our operating performance… excluding items that are non cash or volatile in nature.” (CAO)
  • “This is the realizable revenue from ground leases that have already been signed… currently… just under $140,000,000… by the end of this year… just shy of $190,000,000.” (CEO)
  • “DVT and ADS have both commenced operation… APA is set for delivery next month… we should get close to full capacity on those campuses [in] four to six months.” (CEO)
  • “We’re seeing… actual revenues continue to exceed… our forecast revenues… particularly… on the second round of lease outs.” (CEO)

Q&A Highlights

  • Acceleration potential: Management sees exponential growth in ground lease wins, suggesting 50 campuses in 3–5 years could prove conservative if current pace sustains (CEO) .
  • Brownfield vs. greenfield: Pipeline of brownfield opportunities is robust, but plans center on greenfield development; additional services will be value-enhancing rather than immediate revenue drivers (CEO) .
  • Financing plan: ~$150m PAB targeted for summer with strong investor interest; dual-tracking bank/bond; working toward IG ratings; potential new issue yields in low-5% range (CFO) .
  • Cost initiatives: Vertical integration and national procurement to cut costs and timelines; $32–33/sf savings on pre-engineered metal buildings cited (CEO) .
  • Tariffs/materials: Recent steel price hikes mitigated through preorders; federal regulatory exposure relatively static; local/state hurdles are primary (CEO) .

Estimates Context

  • S&P Global consensus EPS and revenue estimates for Q4 2024 were unavailable for SKYH; therefore, comparisons vs Wall Street consensus cannot be provided at this time.
  • We will update estimate comparisons if S&P Global data becomes available in the future.

Key Takeaways for Investors

  • Execution momentum: Record 2024, liquidity cushion, and immediate campus openings (DVT live; APA/ADS imminent) support a credible path to breakeven by Q4 2025; watch near-term lease-up velocity and revenue realization .
  • Pricing power: Second-round lease step-ups and semi-private density materially lift revenue; management cites consistent 20%+ step-ups on renewals/replacements and faster rent ramps post-CO .
  • Capital formation: ~$75m PIPE completed (Dec 2024); ~$150m PAB in summer 2025 with IG ambition; potential low-5% yields—key catalysts for 6–7 new campuses and ~800k RSF .
  • Cost-down and speed-up: RapidBuilt integration, standardized “Sky Harbour 37,” and multi-campus procurement offer tangible cost/time benefits; monitor margin trajectory as these initiatives scale .
  • Strategic geography: Focus on high-revenue airports (New York metro, BFI Seattle); pipeline indicates sustained site acquisition pace and potential brownfield adds enhancing cash generation .
  • Disclosure cadence: Quarter-specific GAAP figures were limited; investors should track monthly EMMA filings and subsequent quarters for margin/EPS detail and DS coverage evolution .
  • Macro optionality: Potential reinstatement of bonus depreciation could accelerate fleet upgrades toward larger jets, reinforcing demand for SH’s home-basing model .

Appendix: Source Documents

  • Q4 2024 8-K and Press Release: Sky Harbour Announces Record Q4 and 2024 Results; BFI ground lease; Phoenix opening; guidance reiteration .
  • Q4 2024 Earnings Call Transcript: Sequential revenue growth; noncash lease expense; Adjusted EBITDA; site acquisition/leasing; financing and DS coverage; tariffs/materials .
  • Prior quarter transcripts: Q3 2024 and Q2 2024 for trend analysis on site acquisition, standardization, leasing strategy, financing, DS coverage, and liquidity.
  • Q4 2024 other press releases: Trenton-Mercer ground lease (Dec 19, 2024); second PIPE closing (Dec 23, 2024) .