Sky Harbour 2025 Q2 Earnings Strong Net Income Growth of 244.8%

Sky Harbour (SKYH) reported its fiscal 2025 Q2 earnings on August 12, 2025, delivering significant net income growth despite ongoing historical losses. The company exceeded expectations with a revenue surge and notable earnings expansion, although a post-earnings investment strategy over three years underperformed benchmarks.

Sky Harbour (SKYH) reported its fiscal 2025 Q2 earnings on August 12, 2025, with the company exceeding expectations in both revenue and net income. The company maintained its guidance, with no adjustments announced, and provided a clear outlook for future revenue growth from newly developed campuses.

Revenue
Sky Harbour’s total revenue surged 82.1% year-over-year to $6.59 million in Q2 2025, driven by robust performance across its core segments. Rental revenue accounted for the largest portion at $5.22 million, while fuel revenue contributed an additional $1.36 million. This segment-level performance reflects strong demand and operational expansion across its airport-based offerings.

Earnings/Net Income
The company’s earnings growth outpaced revenue gains, with EPS rising 126.1% to $0.52 in Q2 2025 compared to $0.23 in the same period of 2024. Net income surged even more dramatically, increasing 244.8% to $14.36 million from $4.16 million in 2024 Q2. Despite this strong performance, the company continued to report losses for the fifth consecutive year in the same quarter, indicating that profitability remains a work in progress.

Price Action
During the latest trading day, SKYH shares declined slightly by 0.54%, but saw a strong rebound of 11.73% over the past week and a 9.50% gain month-to-date.

Post-Earnings Price Action Review
A strategy of purchasing shares following the company’s revenue growth quarter-over-quarter has historically performed poorly, with a three-year return of -5.54%, underperforming the benchmark by 8.85%. The approach also showed high volatility, with a 45.26% standard deviation and a Sharpe ratio of -0.26, indicating a risky and unprofitable investment pattern. The maximum drawdown of 0% suggests that while the strategy lacked positive returns, it did not experience major losses.

CEO Commentary
Tal Keinan, CEO of Sky Harbour, emphasized the company’s strategic focus on Tier 1 airports and pre-leasing as key growth drivers. He highlighted the benefits of vertical integration in construction and the importance of operational excellence and differentiated service offerings. Keinan also noted the complexity of scaling construction but expressed confidence in the team and the company’s model. He remained optimistic about leveraging pre-leasing to secure long-term commitments and strengthening competitive advantages through innovation.

Guidance
The company expects to achieve cash flow breakeven on a consolidated basis by the end of 2025. Francisco X. Gonzalez noted that Q3 and Q4 are anticipated to see significant revenue growth from newly leased-up campuses, with annualized revenue projections of $14 million. Sky Harbour also expects to outperform original CBRE forecasts for existing campuses and maintain operating leverage as SG&A costs remain stable. The warehouse facility is expected to fund $300 million in capital developments over the next five to six years, supporting continued expansion and pre-leasing initiatives.

Additional News
In the three weeks following the earnings report, Sky Harbour made no public announcements regarding mergers or acquisitions. There were also no reported changes at the C-level, including the CEO or CFO. The company did not announce any new dividend or share repurchase programs, and no significant restructuring initiatives were disclosed. Instead, the focus remained on internal expansion and operational improvements, particularly in construction and leasing strategies. Sky Harbour’s leadership continued to emphasize long-term growth through pre-leasing and vertical integration, with no external financial incentives currently planned for shareholders.