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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 was negatively impacted by its Q3 earnings report, which showed a loss of $0.06 per share, exceeding the estimated loss of $0.01 per share. The company's revenue also missed estimates. Furthermore, high construction costs and project selection pose near-term risks. Despite a $200 million tax-exempt warehouse drawdown committed bank facility with J.P. Morgan, widening losses due to expansion and ground lease expenses are concerning. A Stonegate Capital Partners update noted solid momentum, but this contrasts with the reported quarterly loss.

1.c. Company Highlights

2. Sky Harbour's Q3 Earnings: A Strong Revenue Growth Story

Sky Harbour reported a significant increase in consolidated revenues, reaching $7.3 million for the quarter, representing a 78% year-over-year and 11% sequential growth. The company's wholly-owned subsidiary, Sky Harbour Capital, also reported a 25% year-over-year increase in revenues and an 8% sequential increase. The actual EPS came out at '-0.06', beating estimates of '-0.1'. Adjusted EBITDA, a measurement tool used to evaluate the company's operating and financial performance, was also discussed, with a reconciliation provided from GAAP net loss results to the three months ended 09/30/2025.

Publication Date: Nov -19

📋 Highlights
  • Revenue Growth:: Consolidated revenues rose 78% YoY to $7.3 million in Q3 2025, with Sky Harbour Capital reporting 25% YoY revenue growth.
  • Assets Under Construction:: Assets under construction and completed reached over $300 million, reflecting accelerated development timelines for 2026.
  • Financing Milestone:: Secured a $200 million tax-exempt drawdown facility with JPMorgan to fund future projects, enhancing liquidity to $48 million in cash plus the facility.
  • High-Value JV Deal:: Signed a $30.75 million binding LOI for a 75% stake in a 34-hangar facility at Opa-locka, implying a development margin exceeding 180%.
  • Site Expansion:: On track to deliver 23 airports by year-end, with 19 currently active, including new sites in Long Beach, Connecticut, and Salt Lake City.

Operational Highlights

The company continued to make progress in its site acquisition and development efforts, with 19 airports on the chart and on track to deliver 23 airports by the end of the year. The latest airport addition is Long Beach, California, with expectations of excellent growth. Sky Harbour is also expanding its leasing strategy to increase its emphasis on semi-private space versus private space. The company's focus on quality and efficiency is evident in its comprehensive assurance program, which introduces quality assurance tools not available elsewhere in the industry.

Leasing and Revenue Growth

Leasing has been a major success for Sky Harbour, with stabilized campuses growing revenues at a robust pace. The company has achieved high occupancy rates at airports like Deer Valley in Phoenix, Addison in Dallas, and Centennial, with longer-term leases already exceeding target rents. With a pre-leasing model being implemented, starting with Bradley, Connecticut, the company is confident that this strategy will drive growth and profitability. Analysts estimate next year's revenue growth at 75.3%, indicating a strong potential for continued expansion.

Valuation and Future Prospects

With a P/S Ratio of 28.09 and an EV/EBITDA of 370.81, the market is pricing in significant growth expectations for Sky Harbour. The company's ROE is currently at -3.94%, and the Net Debt / EBITDA ratio is -13.32, indicating a relatively healthy debt position. As Tal Keinan noted, the proposed joint venture for a 75% stake in a 34-hangar facility at Opa-locka Airport implies a gross valuation of more than $1,000 per square foot, with an expected cost of roughly $353 per square foot, resulting in a development margin of over 180%. This suggests that the company's growth prospects are promising, and the current valuation may be justified.

Conclusion on Growth Strategy

Sky Harbour's focus on maximizing revenue capture at top-tier airports, expanding existing campuses, and exploring financing options, including a potential $75-100 million tax-exempt bond, positions the company for continued growth. The company's willingness to consider strategic partnerships and joint ventures, such as the JV deal with the hangar valued at $41 million, also demonstrates its commitment to driving growth and profitability.

3. NewsRoom

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Sky Harbour Group Corporation to Present at NobleCon21, Noble Capital Markets' Twenty First Annual Emerging Growth Equity Conference

Nov -20

Source: newsfilecorp.com

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Sky Harbour Announces New Atlanta, Georgia (PDK) Hangar Campus Development

Nov -19

Source: businesswire.com

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Stonegate Capital Partners Updates Coverage on Sky Harbour Group Corporation (SKYH) Q3 2025

Nov -13

Source: newsfilecorp.com

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Sky Harbour Group Corporation (SKYH) Q3 2025 Earnings Call Transcript

Nov -13

Source: seekingalpha.com

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Sky Harbour Group Corporation (SKYH) Reports Q3 Loss, Misses Revenue Estimates

Nov -13

Source: zacks.com

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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

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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Intuitive Machines

A-Score: 3.9/10

Value: 8.0

Growth: 1.8

Quality: 4.4

Yield: 0.0

Momentum: 8.5

Volatility: 1.0

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Astronics

A-Score: 3.9/10

Value: 3.5

Growth: 4.0

Quality: 3.3

Yield: 0.0

Momentum: 9.5

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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Terran Orbital

A-Score: 3.9/10

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

9.55$

Current Price

9.55$

Potential

-0.00%

Expected Cash-Flows