Sky Harbour Group Corporation (NYSE: SKYH) reported substantial progress in its aviation infrastructure development during the first quarter of 2025, highlighting significant revenue growth and strategic expansion across multiple locations nationwide.
The company's first-quarter financial results showcase remarkable momentum, with total revenue increasing 133% year-over-year to $5.6 million. This growth was primarily driven by new lease commencements at the San José campus, partial occupancy at the Phoenix Deer Valley campus, and contributions from the recently acquired Camarillo facility.
Sky Harbour's strategic expansion includes adding key facilities in critical aviation markets. The company initiated operations at its Phoenix Deer Valley campus and is preparing for campus openings in Dallas Addison and Denver Centennial during the second quarter. A significant milestone was the acquisition of a 90,000-square-foot facility at Seattle's Boeing Field, reinforcing the company's national infrastructure presence.
The company's portfolio now encompasses eight operational campuses, one under active construction, and ten in pre-development stages. This positions Sky Harbour for substantial long-term growth, with over 2.1 million square feet of space in development representing approximately $37.6 million in potential annualized revenue once fully stabilized.
Despite ongoing infrastructure investments, the company demonstrated financial discipline. Gross margins improved to 1.3% in the first quarter, and management remains committed to achieving consolidated run-rate breakeven cash flow by year-end. The company maintains strong liquidity, with $83.7 million in consolidated cash and restricted cash.
Industry analysts from Stonegate Capital Partners project a valuation range between $14.40 and $22.46 per share, reflecting the company's strategic positioning and growth potential in the private aviation infrastructure market. The valuation considers the company's assumable debt and estimated blended interest rate of 4.25%.
As private aviation continues to evolve, Sky Harbour's aggressive expansion strategy and focus on developing high-quality infrastructure campuses could potentially reshape regional aviation support services. The company's ability to rapidly scale its portfolio while maintaining financial prudence suggests a promising trajectory in the emerging private aviation infrastructure sector.
