Sky Harbour's Q2 2025 Earnings Call: Key Contradictions in Debt Strategy, Revenue Projections, and Cost Efficiency

Debt financing strategy, equity raising and capital structure, impact of increased supply on lease rates, revenue projections and comparison to forecasts, scaling and cost efficiency are the key contradictions discussed in Sky Harbour Group Corporation's latest 2025Q2 earnings call.



Revenue Growth and Expansion:
- Sky Harbour Group reported a 82% year-over-year increase in consolidated revenues to $6.6 million for Q2 2025, with a 18% sequential increase.
- This growth was driven by the acquisition of Camarillo and higher revenues from existing campuses, as well as the opening of new campuses in Phoenix, Dallas, and Denver.

Operational Efficiency and Cash Flow:
- Cash flow used in operating activities improved to less than $1 million for the quarter, down from $5 million in Q1.
- The improvement was due to increased leasing and cash flow from new campuses, which are expected to achieve cash flow breakeven by year-end.

Leasing and Pre-leasing Strategy:
- Sky Harbour initiated a pilot project for pre-leasing hangar spaces at airports like Bradley and Dulles, with signed leases at introductory pricing.
- This approach aims to secure committed residents for future campuses and potentially reduce the time needed to achieve full occupancy upon opening.

Vertical Integration in Construction:
- Sky Harbour formed Ascend Aviation Services to manage its own construction and manufacturing, with a focus on improving quality, reducing costs, and accelerating construction timelines.
- This move is expected to lower per square foot costs and mitigate supply chain interruptions by having greater control over the construction process.