Sky Harbour Group Reports Strong Q3 Growth as Aviation Infrastructure Expansion Accelerates

Sky Harbour Group Corporation (NYSE: SKYH) reported substantial third-quarter growth as the aviation infrastructure developer continues its transition from development to cash-generating operations across its expanding network of airport campuses. The company generated consolidated revenue of approximately $7.3 million in the third quarter of 2025, representing a 78% year-over-year increase and 11% sequential growth as additional campuses reached operational status.

The company now conducts resident flight operations at nine campuses, including fully operational sites at 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). This expansion reflects Sky Harbour's strategic execution in developing aviation infrastructure across key metropolitan markets. Stabilized campuses generally maintained at or near full occupancy, while newer locations including ADS and DVT surpassed the 50% leased threshold, indicating strong market demand for premium aviation facilities.

Revenue composition showed rental revenue increasing to approximately $5.7 million and fuel revenue reaching about $1.6 million, driven by higher utilization across both stabilized and recently opened sites. The company's development pipeline continues to advance with additional Tier 1 locations such as Bradley (BDL), Dulles (IAD), Orlando Executive (ORL), Salt Lake City (SLC), Portland-Hillsboro (HIO), and Long Beach (LGB) progressing through development and pre-leasing phases. Management noted that pre-leasing activity at future developments continues to secure early commitments without material pricing concessions, reinforcing the company's pricing power in the aviation infrastructure market.

Construction activity remains robust with constructed assets and construction in progress increasing to more than $308 million at quarter-end. The company's vertically integrated platform, including Ascend Aviation Services and Stratus Building Systems, enhances quality control while managing per-square-foot costs and improving delivery timelines across the network. ADS received final certificates of occupancy and became fully operational, while APA commenced resident flight operations as it neared completion, marking the important shift from construction to income generation at both campuses.

Financial performance showed improvement in gross margin, which reached 13.5% in the third quarter compared to 10.2% in the same period 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, reflecting the costs associated with the company's aggressive expansion strategy. Net income attributable to common shareholders was negative $1.9 million, or $0.06 per diluted share, while adjusted EBITDA remained negative but showed improvement on a run-rate basis.

Capital structure strengthening included the signing of a joint venture letter of intent on an SH34 hangar at OPF Phase 2, providing flexible, lower-cost funding to support the next wave of growth. 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, preserving capacity to fund five to six upcoming developments across Tier 1 airports.

Stonegate Capital Partners' valuation analysis using discounted cash flow methodology produces a valuation range of $12.81 to $19.93 with a midpoint of $15.74. This analysis relies on discount rates between 8.75% and 9.25% with a midpoint of 9.00% and accounts for Sky Harbour's debt being assumable with an estimated blended interest rate of 4.25%. The company's strategic positioning in aviation infrastructure development comes at a critical time when private aviation demand continues to grow while airport capacity constraints persist across major metropolitan areas.