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1. Company Snapshot

1.a. Company Description

Sky Harbour Group Corporation operates as an aviation infrastructure development company in the United States.It develops, leases, and manages general aviation hangars for business aircraft.The company was founded in 2017 and is based in White Plains, New York.

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1.b. Last Insights on SKYH

Sky Harbour Group Corporation's recent performance is driven by growing demand for business jet hangars and long-term lease contracts. The company's Q2 2025 earnings call highlighted strong operational momentum, with campus openings, leasing activity, and construction progress across its nationwide network. A $200 million tax-exempt warehouse drawdown committed bank facility with J.P. Morgan further supports growth. Analysts expect a 72.97% upside potential, citing a resilient customer base and rising lease rates. Stonegate Capital Partners updated coverage, noting the company's maintained operational momentum.

1.c. Company Highlights

2. Sky Harbour's Q2 2025 Earnings: A Strong Leap Forward

Sky Harbour's financial performance in Q2 2025 demonstrated significant year-over-year growth, with consolidated revenues increasing by 82% to $6.6 million. This surge was primarily driven by the acquisition of Camarillo and higher revenues from existing campuses. The company's operating expenses also rose moderately due to the purchase of fuel at Camarillo and the added expenses of bearing payroll and other costs for the three new campuses without associated revenues. The actual EPS came out at '-0.1', beating estimates at '-0.12'. As CFO Francisco Gonzalez mentioned, the company is on track to reach cash flow breakeven on a consolidated basis by the end of the year as the three new campuses ramp up leasing and cash flowing.

Publication Date: Aug -28

📋 Highlights
  • Revenue Surge:: Consolidated revenues hit $6.6 million, up 82% YoY and 18% sequentially, driven by Camarillo acquisition and existing campus growth.
  • Cash Flow Improvement:: Operating cash outflow dropped to <$1M in Q2 from $5M in Q1, on track for full-year breakeven as new campuses scale leasing.
  • Construction Expansion:: Assets under construction reached $300 million, supported by vertical integration via subsidiaries Ascend and Stratus to cut costs and accelerate projects.
  • Debt Facility Secured:: $200 million warehouse bank facility secured for 5-6 capital developments, reducing reliance on equity for near-term growth.
  • Pre-Leasing Success:: Pilot program pre-leased hangars at Dulles and Bradley airports, signaling strong demand ahead of construction at new campuses.

Revenue Growth Drivers

The company's revenue capture potential is approximately $140 million and is expected to approach $200 million by the end of the year. Sky Harbour is tracking to exceed projections, particularly in the Miami market, with higher revenue per square foot due to higher-than-forecasted rents, fuel margins, and the ability to rent the same space multiple times. The second turn of leases also presents an opportunity for higher revenue.

Operational Efficiency and Cost Management

Sky Harbour is focused on delivering outstanding physical and service offerings, prioritizing "time to wheels up" to ensure that aircraft owners can take off quickly. The company's training program for line crew members is unique and helps to simulate towing aircraft without risking customer planes. The company is also investing in vertical integration and manufacturing, which should result in lower costs per square foot.

Valuation and Growth Prospects

With a P/S Ratio of 38.72 and an expected revenue growth rate of 75.3% next year, Sky Harbour's valuation appears to be pricing in significant growth prospects. The company's ROE is currently negative at -23.17%, but the ROIC is at 3.12%, indicating some return on invested capital. The Net Debt / EBITDA ratio is -18.38, suggesting a manageable debt position. Analysts should continue to monitor the company's progress in achieving cash flow breakeven and its ability to execute on its growth plans.

Financing and Liquidity

The company has settled on a warehouse bank debt facility with a major U.S. financial institution, providing $200 million in funding to finance the next five to six capital developments. This new debt facility alleviates the need to raise equity for the next few years, and the company plans to fund future properties through a combination of ground leases and debt facilities. The creation of Ascend Aviation Services will help the company manage multiple development projects simultaneously.

3. NewsRoom

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Sky Harbour Group Corporation (SKYH) May Report Negative Earnings: Know the Trend Ahead of Q3 Release

Nov -04

Source: zacks.com

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Sky Harbour Announces New Long Beach, California (LGB) Hangar Campus Development

Oct -22

Source: businesswire.com

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Sky Harbour Group Corporation to Present at the LD Micro Main Event XIX

Oct -17

Source: newsfilecorp.com

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Sky Harbour Group: Speculative Buy Backed By Growing Demand

Sep -21

Source: seekingalpha.com

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Sky Harbour Announces the Closing of a $200 Million Tax-Exempt Warehouse Drawdown Committed Bank Facility with J.P. Morgan

Sep -05

Source: businesswire.com

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Stonegate Capital Partners Updates Coverage on Sky Harbour Group Corporation (SKYH) Q2 2025

Aug -13

Source: newsfilecorp.com

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Sky Harbour Group Corporation (SKYH) Q2 2025 Earnings Call Transcript

Aug -13

Source: seekingalpha.com

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Sky Harbour Group Corporation (SKYH) Reports Q2 Loss, Lags Revenue Estimates

Aug -12

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.88%)

6. Segments

General Aviation Hangars

Expected Growth: 7.88%

Sky Harbour Group Corporation's General Aviation Hangars segment growth of 7.88% is driven by increasing demand for luxury aviation services, rising popularity of private flying, and strategic partnerships with high-net-worth individuals and corporations. Additionally, the company's focus on premium amenities and services, such as hangar storage and aircraft maintenance, contributes to its growth momentum.

7. Detailed Products

Airport Infrastructure

Design, development, and operation of airport infrastructure, including terminals, runways, and air traffic control systems.

Airport Operations

Management of airport operations, including ground handling, baggage handling, and cargo handling.

Airport Security

Provision of security services, including passenger screening, baggage screening, and access control.

Airport Technology

Development and implementation of airport technology solutions, including passenger processing systems and airport management systems.

Airport Consulting

Providing consulting services to airports, including strategic planning, operational efficiency, and capacity planning.

Airport Management

Management of airport operations, including airport administration, finance, and human resources.

8. Sky Harbour Group Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Sky Harbour Group Corporation is moderate due to the availability of alternative airport services and transportation options.

Bargaining Power Of Customers

The bargaining power of customers is low due to the limited number of airport services and transportation options available, giving Sky Harbour Group Corporation a competitive advantage.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers of airport services and transportation options, but Sky Harbour Group Corporation's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the airport services and transportation industry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple competitors in the airport services and transportation industry, leading to a competitive market environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 71.53%
Debt Cost 3.95%
Equity Weight 28.47%
Equity Cost 13.27%
WACC 6.60%
Leverage 251.24%

11. Quality Control: Sky Harbour Group Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Mercury Systems

A-Score: 4.0/10

Value: 3.3

Growth: 3.7

Quality: 3.2

Yield: 0.0

Momentum: 10.0

Volatility: 3.7

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Yield: 0.0

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A-Score: 3.9/10

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Growth: 4.0

Quality: 3.3

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Volatility: 3.0

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Sky Harbour

A-Score: 3.9/10

Value: 6.6

Growth: 3.6

Quality: 4.8

Yield: 0.0

Momentum: 4.0

Volatility: 4.3

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Value: 9.6

Growth: 3.2

Quality: 5.0

Yield: 0.0

Momentum: 5.0

Volatility: 0.3

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V2X

A-Score: 3.8/10

Value: 6.3

Growth: 4.0

Quality: 6.1

Yield: 0.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.75$

Current Price

9.75$

Potential

-0.00%

Expected Cash-Flows