Sky Harbour Group Corp. (NYSE: SKYH) has reported a notable increase in operational momentum during the second quarter of 2025, as detailed in the latest coverage update by Stonegate Capital Partners. The company's growth is attributed to the opening of new campuses, active leasing, and progress in construction across its expanding national network. Key developments include the commencement of operations at Dallas Addison (ADS) and Seattle Boeing Field (BFI), with Denver Centennial (APA) expected to start resident flight operations early in the third quarter. Additionally, the groundbreaking of Miami Opa-Locka (OPF) Phase 2 marks another milestone, with completion aimed for the second quarter of 2026.
Financially, Sky Harbour showcased an 82% year-over-year increase in consolidated revenue, reaching $6.6 million for the quarter. This growth is supported by the acquisition of Camarillo (CMA) in December 2024, heightened activity at existing campuses, and initial revenue from newly operational sites. The company's strategic pre-leasing initiatives have proven successful, securing early commitments at future developments without significant pricing concessions, a testament to the strong demand for its facilities.
Construction and development efforts have also seen substantial progress, with constructed assets and construction-in-progress totaling over $295 million by the end of the quarter. The establishment of Ascend Aviation Services, a vertically integrated development subsidiary, aims to enhance in-house capabilities, promising improved quality control, faster delivery times, and reduced costs. Despite facing a gross margin of (2.0)% due to increased operational costs from new campuses, Sky Harbour remains optimistic about achieving consolidated run-rate breakeven cash flow and adjusted EBITDA by year-end.
The company's financial health is further underscored by its $74.9 million in consolidated cash, restricted cash, and U.S. Treasuries at the end of Q2 2025, alongside a secured $200 million tax-exempt warehouse debt facility. This financial maneuvering provides Sky Harbour with the flexibility to fund upcoming developments efficiently. Stonegate Capital Partners' valuation of SKYH, based on a Discounted Cash Flow Analysis, suggests a promising outlook, with a valuation range of $13.53 to $20.69.
Sky Harbour's advancements not only reflect its own growth trajectory but also signal positive trends within the aviation infrastructure sector. The company's ability to secure early commitments for future developments and its strategic financial management highlight its potential for sustained growth and industry leadership. For more information on Sky Harbour's developments, visit https://www.skyharbour.group.
