Sky Harbour Group Reports Strong Q3 2025 Growth with Revenue Up 78% Year-Over-Year

Stonegate Capital Partners has updated coverage on Sky Harbour Group Corporation following the company's third quarter 2025 performance. Sky Harbour sustained solid momentum as it continued scaling operations and transitioning from development to cash-generating activities. The company now conducts resident flight operations at nine campuses, including fully operational sites at Sugar Land, Nashville, Miami Opa-Locka, San Jose, Camarillo, Phoenix Deer Valley, Dallas Addison, Seattle Boeing Field, and Denver Centennial. Additional Tier 1 locations such as Bradley, Dulles, Orlando Executive, Salt Lake City, Portland-Hillsboro, and Long Beach are advancing through development and pre-leasing phases.

For the third quarter of 2025, Sky Harbour reported consolidated revenue of approximately $7.3 million, representing a 78% year-over-year increase and 11% sequential growth as additional campuses ramped up operations. Rental revenue increased 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, while Dallas Addison and Phoenix Deer Valley moved past the 50% leased threshold and Denver Centennial began contributing with initial leases. Pre-leasing activity at future developments, notably Bradley and Dulles, continued to secure early commitments without material pricing concessions, reinforcing the company's demand and pricing power in the aviation infrastructure market.

Constructed assets and construction in progress increased to more than $308 million at quarter-end, supported by ongoing investment at Phoenix Deer Valley, Dallas Addison, Denver Centennial, and Miami Opa-Locka Phase 2. Dallas Addison received final certificates of occupancy and became fully operational, while Denver Centennial commenced resident flight operations as it neared completion, marking a significant shift from construction to income generation at both campuses. Miami Opa-Locka Phase 2 remains on schedule for completion in the second quarter of 2026, Bradley broke ground with targeted delivery in the fourth quarter of 2026, and site work advanced at Salt Lake City and other Tier 1 locations including Orlando Executive, Portland-Hillsboro, and Long Beach.

Gross margin improved to 13.5% in the third quarter of 2025, compared to 10.2% in the same quarter last year and negative 2.0% in the second quarter of 2025. However, operating loss widened to $7.7 million from $4.8 million in the prior-year quarter. Net income attributable to common shareholders was negative $1.9 million, or negative $0.06 per diluted share. Adjusted EBITDA remained negative but showed improvement on a run-rate basis, indicating progress toward profitability as the company continues its expansion strategy.

Sky Harbour ended the third quarter with approximately $48.0 million in consolidated cash, restricted cash, and U.S. Treasuries. Management strengthened the capital stack by signing a joint venture letter of intent on an SH34 hangar at Miami Opa-Locka Phase 2, together providing flexible, lower-cost funding to support the next wave of growth. The 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. This facility was undrawn at quarter-end, preserving capacity to fund five to six upcoming developments across Tier 1 airports. Stonegate Capital Partners' discounted cash flow analysis produces a valuation range of $12.81 to $19.93 with a midpoint of $15.74, reflecting confidence in Sky Harbour's growth trajectory and strategic positioning in the aviation infrastructure sector.