Sky Harbour Group Corp. (NYSE: SKYH) reported solid momentum in its third quarter of 2025, with consolidated revenue reaching approximately $7.3 million, a 78% increase year-over-year and 11% sequentially. The company, which specializes in premium aircraft hangar facilities, is transitioning from a development phase to cash-generating operations as it now conducts resident flight operations at nine campuses nationwide.
Operational campuses include 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). Additional Tier 1 locations such as Bradley (BDL), Dulles (IAD), Orlando Executive (ORL), Salt Lake City (SLC), Portland-Hillsboro (HIO), and Long Beach (LGB) are advancing through development and pre-leasing. Constructed assets and construction in progress increased to more than $308 million at quarter-end.
Rental revenue rose to roughly $5.7 million, while fuel revenue reached about $1.6 million, driven by higher utilization at both stabilized and recently opened sites. Stabilized campuses generally remained at or near full occupancy. ADS and DVT moved past the 50% leased threshold, and APA began contributing with initial leases. Pre-leasing at future developments, notably BDL and IAD, continued to secure early commitments without material pricing concessions, reinforcing demand and pricing power.
On the development front, ADS received final certificates of occupancy and became fully operational, while APA commenced resident flight operations as it neared completion. Construction continues at Phoenix Deer Valley, Dallas Addison, Denver Centennial, and Miami Opa-Lock Phase 2. 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. Sky Harbour leverages its vertically integrated platform, including Ascend Aviation Services and Stratus Building Systems, to enhance quality control and manage costs.
Gross margin improved to 13.5% in 3Q25, compared to 10.2% in 3Q24 and (2.0)% in 2Q25. Operating loss widened to $(7.7) million from $(4.8) million in the prior-year quarter. Net income attributable to common shareholders was $(1.9) million, or $(0.06) per diluted share. Adjusted EBITDA remained negative but improved on a run-rate basis.
Management strengthened the capital stack by signing a joint venture letter of intent on an SH34 hangar at OPF Phase 2, providing flexible, lower-cost funding. The company ended the quarter with approximately $48 million in consolidated cash, restricted cash, and U.S. Treasuries. A 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.
Stonegate Capital Partners uses a Discounted Cash Flow Analysis to guide its valuation of SKYH, producing a range of $12.81 to $19.93 with a mid-point of $15.74. The analysis relies on discount rates between 8.75% and 9.25% and accounts for SKYH's assumable debt with an estimated blended interest rate of 4.25%.
