Sky Harbour Group Corp. (NYSE: SKYH) reported strong operational momentum in the second quarter of 2025, underpinned by campus openings, leasing activity, and construction progress across its nationwide network. The company commenced operations at Dallas Addison (ADS) and Seattle Boeing Field (BFI) and prepared for the start of resident flight operations at Denver Centennial (APA) in early Q3 2025. Additionally, Miami Opa-Locka (OPF) Phase 2 broke ground in Q2, with completion targeted for Q2 2026. The company also advanced pre-development at multiple Tier 1 airport sites, including Dulles (IAD), Bradley International (BDL), and Portland-Hillsboro (HIO), and initiated a successful pilot program to pre-lease hangars at airports not yet under construction, securing early commitments at BDL and IAD.
Consolidated revenue for Q2 2025 reached $6.6 million, up 82% year-over-year and 18% sequentially, reflecting contributions from the December 2024 acquisition of Camarillo (CMA), increased activity at legacy campuses, and initial revenue from newly opened ADS, APA, and DVT campuses. Rental revenue grew to $5.2 million, while fuel revenue rose to $1.4 million. Leasing velocity remained strong, with stabilized campuses largely at or near full occupancy and active negotiations underway for available space at new sites. Pre-leasing initiatives at future developments demonstrated that early commitments could be secured without significant pricing concessions.
Constructed assets and construction-in-progress reached over $295 million at quarter-end, up $125 million year-over-year and $18 million sequentially, supported by continued build-out at Phoenix (DVT), ADS, APA, and OPF Phase 2. The formation of Ascend Aviation Services—a wholly owned, vertically integrated development subsidiary led by industry veteran Phil Amos—strengthened in-house general contracting and construction management capabilities, complemented by the company’s Stratus Building Systems manufacturing unit. This integration is expected to improve quality control, accelerate delivery, reduce per-square-foot costs, and mitigate supply chain risk.
Gross margin was (2.0)% in Q2, compared to 7.7% in Q2 2024 and 1.3% in Q1 2025, reflecting higher ground lease, payroll, and operating costs associated with newly opened campuses ahead of full lease-up. Operating loss widened to $(7.5) million from $(5.0) million in the prior-year quarter. Net income attributable to common shareholders was $17.5 million, or $0.18 per diluted share, driven by a $21.8 million non-cash gain on warrant revaluation. Adjusted for non-cash items, EBITDA remained negative but improved sequentially, with management reaffirming expectations to achieve consolidated run-rate breakeven cash flow and adjusted EBITDA by year-end.
Sky Harbour ended Q2 2025 with $74.9 million in consolidated cash, restricted cash, and U.S. Treasuries. Subsequent to quarter-end, the company secured a committed $200 million tax-exempt warehouse debt facility with a major U.S. financial institution, providing flexible, draw-as-needed capital to fund 5–6 upcoming developments while reducing negative carry relative to a full bond issuance.
Stonegate Capital Partners, which updated its coverage on Sky Harbour Group, uses a Discounted Cash Flow Analysis to guide valuation of SKYH, producing a valuation range of $13.53 to $20.69 with a mid-point of $16.48. 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%.
