Sky Harbour 2025 Q1 Earnings Surpasses Expectations with Net Income Improvement

Sky Harbour (SKYH) reported its fiscal 2025 Q1 earnings on May 13th, 2025. The company exceeded expectations with a significant reduction in net loss, achieving a 133% revenue increase compared to Q1 2024. Sky Harbour reaffirmed its guidance for achieving breakeven cash flow by year-end 2025, supported by new campus openings. This optimistic outlook aligns with strategic expansions, including ground leases at Seattle's Boeing Field and Stewart International Airport, enhancing growth momentum. Despite facing financial headwinds, Sky Harbour's liquidity position remains robust, with $97.4 million in cash and US Treasuries.

Revenue

Sky Harbour reported a substantial 132.7% increase in total revenue for Q1 2025, reaching $5.59 million, compared to $2.40 million in Q1 2024. Rental revenue played a significant role, generating $4.46 million, while fuel revenue contributed an additional $1.13 million. This upward trend underscores the company's strategic expansion and operational success.

Earnings/Net Income

Sky Harbour significantly improved its financial position by narrowing losses to $0.19 per share in Q1 2025, marking a 75.6% improvement from $0.78 per share in Q1 2024. The company's net loss reduced to $-9.13 million, a 57.0% decrease from the previous year's $-21.20 million. The EPS improvement reflects positively on the company's strategic efforts.

Post Earnings Price Action Review

The strategy of buying Sky Harbour Group's stock after a revenue miss and holding for 30 days revealed a nuanced outcome. Although the initial reaction saw a decline, reflecting investor disappointment, a slight recovery followed after 30 days. This suggests an adjustment in market sentiment or confidence in the company's fundamentals, fostering a modest rebound in stock price. Nevertheless, investors should be cautious, considering the aerospace and defense industry's sensitivity to geopolitical events and broader economic conditions, which could influence stock performance. Additionally, persistent revenue shortfalls or negative earnings may lead to extended declines. Investors are encouraged to closely monitor Sky Harbour's financial performance and strategic developments, such as acquisitions or partnerships, that could impact future revenue streams. Staying informed about industry trends and global events is crucial for making informed investment decisions.

CEO Commentary

Sky Harbour Group Corporation's CEO emphasized the company's significant growth, noting a 133% revenue increase in Q1 2025 compared to Q1 2024. He highlighted the strategic opening of new campuses in Phoenix and Dallas as key growth drivers, despite a net cash usage of $5.1 million attributed to start-up expenses. The CEO expressed confidence in the company's liquidity position, with $97.4 million in cash and US Treasuries, and reiterated a commitment to achieving run rate breakeven operating cash flow by year-end 2025, reflecting a positive outlook on upcoming campus operations.

Guidance

Sky Harbour reaffirms its guidance to reach run rate breakeven operating cash flow/adjusted EBITDA by the end of 2025, driven by expected positive cash flows from newly opened campuses. The company anticipates announcing five additional new hangar ground leases by year-end 2025, aiming for a total of 23 airport ground leases. The CEO noted that the campuses in Denver and Addison are forecasted to commence operations soon, reinforcing the company's strategic growth plans and operational momentum.

Additional News

Sky Harbour Group Corporation (SKYH) has recently expanded its portfolio through strategic site acquisitions, securing new ground leases at Seattle's King County International Airport – Boeing Field and Stewart International Airport. The Boeing Field site comprises approximately 90,000 rentable square feet, while Stewart Airport covers 16 acres with plans for 250,000 square feet of hangar space. Furthermore, Sky Harbour has announced a new campus development at Hillsboro Airport (HIO) in Portland, Oregon, spanning 13 acres in two phases. This expansion is expected to generate substantial local employment and economic benefits. These initiatives signify Sky Harbour's commitment to scaling operations and enhancing service standards for business aviation clients across the United States.