Sky Harbour Group Corp. (NYSE: SKYH) reported strong third-quarter results, underscoring its transition from development to cash-generating operations. 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). Additional Tier 1 locations such as Bradley (BDL), Dulles (IAD), Orlando Executive (ORL), Salt Lake City (SLC), Portland-Hillsboro (HIO), and Long Beach (LGB) are advancing through development and pre-leasing.
Consolidated revenue for the quarter reached approximately $7.3 million, a 78% year-over-year increase and an 11% sequential rise, driven by campus ramp-up. Rental revenue grew to roughly $5.7 million, while fuel revenue contributed about $1.6 million. Stabilized campuses remained near full occupancy, and newly opened sites like ADS and DVT surpassed the 50% leased threshold. APA began contributing with initial leases, and pre-leasing at future developments, particularly BDL and IAD, secured early commitments without material pricing concessions, reinforcing demand and pricing power.
Constructed assets and construction-in-progress increased to over $308 million at quarter-end, supported by ongoing investments at Phoenix Deer Valley, Dallas Addison, Denver Centennial, and Miami Opa-Locka Phase 2. ADS received final certificates of occupancy and became fully operational, while APA commenced resident flight operations, marking a shift from construction to income generation. OPF Phase 2 remains on schedule for completion in the second quarter of 2026, Bradley broke ground with targeted delivery in the fourth quarter of 2026, and site work advanced at Salt Lake City and other locations including Orlando Executive, Portland-Hillsboro, and Long Beach. Sky Harbour leverages its vertically integrated platform, including Ascend Aviation Services and Stratus Building Systems, to enhance quality control and manage costs.
Gross margin improved to 13.5% in Q3 2025, compared to 10.2% in Q3 2024 and negative 2.0% in Q2 2025. Operating loss widened to $(7.7) million from $(4.8) million in the prior-year quarter, while net income attributable to common shareholders was $(1.9) million, or $(0.06) per diluted share. Adjusted EBITDA remained negative but improved on a run-rate basis.
Sky Harbour 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 and was undrawn at quarter-end, preserving capacity to fund five to six upcoming developments across Tier 1 airports.
Stonegate Capital Partners updated its coverage, using a Discounted Cash Flow Analysis to guide valuation. The DCF analysis produces a valuation range of $12.81 to $19.93 with a midpoint of $15.74, relying on discount rates between 8.75% and 9.25% and accounting for SKYH's debt with an estimated blended interest rate of 4.25%.
