Update on Capital Formation and Debt Management thth On December 9, the Company entered into a $15 million corporate holding company loan with an affiliate of Yorkville Advisors Global, LP ("Yorkville Loan†). The Yorkville Loan has an 18-month term with an interest rate of 7.75% (taxable) and an upfront fee at closing of 50,000 SKYH shares. The Yorkville Loan has a principal paydown schedule starting on July 9, 2026. Proceeds from the Yorkville Loan are expected to be used for general corporate purposes. ...

WEST HARRISON, N.Y.--(BUSINESS WIRE)--Sky Harbour Group Corporation (NYSE: SKYH, SKYH WS) ("SHG†or the "Company†), an airport infrastructure company building the first nationwide network of Home Base Operator ("HBO†) campuses for business aircraft, today announced that the City of Fort Worth has authorized the execution of a ground lease agreement for the development of a Sky Harbour HBO campus at Fort Worth Meacham International Airport (FTW). The Sky Harbour campus will serve as a home base. ...

Company Overview - Sky Harbour Group Corporation is an aviation infrastructure company focused on developing the first nationwide network of Home-Basing campuses for business aircraft [4] - The company aims to provide private and corporate residents with superior physical infrastructure in business aviation, along with dedicated services tailored to based aircraft [4] Event Announcement - Sky Harbour's Treasurer, Tim Herr, will present at NobleCon21, the Twenty First Annual Emerging Growth Equity Conference hosted by Noble Capital Markets [1] - The presentation is scheduled for December 3rd at 3:30 PM Eastern Standard Time at Florida Atlantic University [1] Investor Engagement - Interested investors and guests can attend the conference at a discounted rate using the code SKYHNOBLECON [2] - A high-definition video webcast of the presentation will be available the following day and archived for 90 days on Noble Capital Markets' Conference website and Channelchek [3]

Core Insights - Sky Harbour Group Corp. (NYSE: SKYH) demonstrated strong momentum in Q3 2025, transitioning from development to cash-generating operations [1] - The company is now conducting resident flight operations at nine campuses, with additional Tier 1 locations in development [1] - Constructed assets and construction in progress exceeded $308 million at the end of the quarter, indicating significant growth [1] Financial Performance - Revenue reached $7.3 million, reflecting a 78% year-over-year increase and an 11% sequential increase, driven by $5.7 million in rental income and $1.6 million from fuel as nine campuses ramped up operations [6] - At the end of Q3 2025, liquidity stood at approximately $48 million in cash, restricted cash, and Treasuries, with a new $200 million warehouse facility available for expansion to $300 million, which remained undrawn [6] Operational Developments - The company has fully operational sites at Sugar Land, Nashville, Miami Opa-Locka, San Jose, Camarillo, Phoenix Deer Valley, Dallas Addison, Seattle Boeing Field, and Denver Centennial [1] - Management has strengthened the capital structure by signing a joint venture letter of intent for an SH34 hangar at OPF Phase 2, providing flexible and lower-cost funding for future growth [1]

分组1 - Sky Harbour Group Corporation reported a quarterly loss of $0.06 per share, better than the Zacks Consensus Estimate of a loss of $0.10, representing an earnings surprise of +40.00% [1] - The company posted revenues of $7.3 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 15.42%, but showing an increase from $4.1 million year-over-year [2] - Sky Harbour Group has surpassed consensus EPS estimates in all four of the last quarters, but has only topped consensus revenue estimates once in the same period [2] 分组2 - The stock has underperformed the market, losing about 18.3% since the beginning of the year, while the S&P 500 gained 16.4% [3] - The current consensus EPS estimate for the coming quarter is -$0.08 on revenues of $11.47 million, and -$0.14 on revenues of $32.29 million for the current fiscal year [7] - The Zacks Industry Rank for Aerospace - Defense Equipment is currently in the bottom 30% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Financial Data and Key Metrics Changes - Consolidated revenues increased by 78% year over year and 11% sequentially, reaching $7.3 million for the quarter, driven by the acquisition of the Camarillo campus and higher revenues from existing and new campuses [5][6] - Operating expenses dropped slightly due to the absence of one-time non-recurring startup expenses from new campuses experienced in Q2, with SG&A expected to remain stable and not exceed $20 million on a cash basis [6][7] - The company is less than $1 million away from break-even on a cash reform operation basis and expects to achieve this goal next month [6] Business Line Data and Key Metrics Changes - Revenues from the wholly-owned subsidiary, Sky Harbour Capital, increased by 25% year over year and 8% sequentially, with expectations for continued growth in Q4 and the first quarter of next year as new campuses are leased [7] - The company has 19 airports in operation or development, with guidance to reach 23 by the end of the year [11] Market Data and Key Metrics Changes - The company is focusing on tier-one airports for site acquisition, indicating a strategic shift towards high-potential markets [36] - The leasing strategy emphasizes achieving 100% occupancy quickly through short-term leases, followed by establishing market rents [31][36] Company Strategy and Development Direction - The company is transitioning to a pre-leasing model for all future airports, starting with Bradley, Connecticut, to secure leases well in advance of construction [39][65] - A comprehensive quality assurance program has been instituted to enhance construction quality across campuses [29] - The company aims to maximize revenue capture at tier-one airports and expand existing operations rather than establishing new ground leases [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving investment-grade ratings by next summer, contingent on completing leasing of new campuses and demonstrating cash flow generation [69] - The company anticipates significant revenue growth as it scales operations, with a notable increase in the number of campuses under construction from three in 2025 to ten in 2026 [48] Other Important Information - A $200 million tax-exempt drawdown facility was finalized with J.P. Morgan to fund upcoming projects, with an expected drawdown over the next two years [22][25] - The company is exploring additional private activity bonds and has not issued equity due to low share prices [25][26] Q&A Session Summary Question: How will Sky Harbour manage the potential risk of locking in lease economics before full construction costs are determined? - Management noted that risks are mitigated through guaranteed maximum price contracts and a systematic approach to site acquisition, aiming for occupancy rates above 50% but not necessarily 100% [44][46] Question: Are any properties in operation over 100% occupancy? - Management confirmed that properties like San Jose are significantly above 100% occupancy, particularly those with a higher ratio of semi-private hangars [47] Question: What highlights early signs of scale in the business? - Management indicated that the increase in the number of campuses under construction and the expected revenue growth from these developments are clear indicators of scale [48][49] Question: What are the details on the potential tax-exempt bond? - Management stated that the bond could come to market as early as next month, with expected rates around 6%, subject to market conditions [50][51] Question: Is the valuation of the hangar indicative of value across the portfolio? - Management clarified that while the valuation is not necessarily indicative of the entire portfolio, it reflects the high demand for aviation hangar space in a static supply environment [57][58] Question: What are the thoughts on more hangars similar to the 75% in Miami? - Management indicated that while this financing model is repeatable, it is not the new business model, focusing instead on cost of capital and not relying solely on equity issuance [61][62] Question: Is there an opportunity to do pre-leasing at more airports? - Management confirmed that pre-leasing is the strategy going forward, starting with Bradley, Connecticut [65] Question: Can you provide a status update on investment-grade ratings? - Management aims to achieve investment-grade ratings by next summer, focusing on demonstrating cash flow generation from new campuses [68][69]

Financial Performance & Construction - Sky Harbour's construction is accelerating, leading to increasing revenues[23] - Sky Harbour Capital LLC raised capital through a municipal bond offering[8] - As of Q3 2025, Sky Harbour has approximately $247.9 million in US Treasuries and cash, including $36.473 million in cash and $11.447 million in treasuries, along with a $200 million warehouse facility[69] - A $200 million JP Morgan draw down facility is funding construction of BDL, SLC, POU1, ORL1, and TTN, swapped to a fixed interest rate of 4.73%[65, 66] Site Acquisition & Development - Sky Harbour reaffirms guidance of 4 new airport announcements by year-end 2025, targeting a total of 23 airports[51] - Sky Harbour is expanding into the Tier 1 LA market with the Long Beach Airport (LGB) project, featuring a 196k SF campus across 2 phases, with potential stabilized revenue of $10 million[54, 56] - Sky Harbour has 19 airport ground leases and is pursuing same-field expansion opportunities, targeting Tier-1 Airports[76] - The company has commenced construction on new sites and is preparing for a surge in development in 2026 and 2027[76, 82] Leasing & Operations - Stabilized campuses are showing revenue growth post-stabilization[76] - Sky Harbour has adopted a preleasing strategy, starting with BDL, to enhance long-term revenue[76, 82] - The company is focused on bringing new campuses to 100% occupancy and establishing market rents[82]

Core Viewpoint - Sky Harbour Group Corporation reported significant growth in Q3 2025, with a 78.2% increase in consolidated revenues compared to Q3 2024, and reiterated its guidance for reaching operating cash-flow breakeven by year-end 2025 [5][12]. Financial Highlights - Constructed assets and construction in progress reached over $308 million, an increase of $108 million year-over-year [5]. - Q3 2025 consolidated revenues increased by 78.2% year-over-year and 10.8% compared to the prior quarter [5]. - Net cash used in operating activities was approximately $0.9 million for Q3 2025, down from $1.2 million in Q3 2024 [5]. - As of September 30, 2025, consolidated cash and US Treasuries totaled $47.9 million, with access to a $200 million construction warehouse bank facility [5]. - Q3 2025 Obligated Group revenues increased approximately 8.2% over the prior quarter, with net cash generated from operating activities reaching approximately $4.2 million, a 92.2% increase from the prior quarter [5]. Update on Construction and Development Activities - Miami Opa Locka Phase 2 is expected to be completed by Q2 2026, adding 111,720 rentable square feet [9]. - Bradley International Airport broke ground in October 2025, expected to be completed in Q4 2026 [9]. - Site work has commenced at Salt Lake City International Airport, with full construction permit expected soon [9]. - Dallas Addison Phase 2 demolition work is nearing completion [9]. Update on Leasing Activities - Dallas Addison Phase 1 and Phoenix Deer Valley Phase 1 have surpassed 50% occupancy [9]. - A preleasing pilot program has been adopted as a permanent program, with binding leases in place at Bradley International Airport and Dulles International Airport [9]. - A binding Letter of Intent has been executed with a JV Partner for a hangar at Miami Opa Locka, involving a $30.75 million cash payment [9]. Update on Airport Operations - The company currently operates campuses at nine airports and plans to reach a total of 23 airports in operation or development by the end of 2025 [9]. - Surveys indicate that Sky Harbour's HBO service offering is well-received, providing a distinct value proposition for residents [9]. Update on Capital Formation - The company entered into a $200 million construction warehouse facility with JPMorgan Chase Bank, with a fixed interest rate of 4.73% locked in through an interest rate swap [15]. - The facility is expandable to $300 million subject to credit approval, with no funds drawn yet [15]. - The company is exploring financing options to minimize capital costs as its development pipeline grows [15].

Financial Performance - Q3 2025 consolidated revenues increased 78.2% compared to Q3 2024, reaching a total of approximately $X million[4] - Net cash generated from operating activities reached approximately $4.2 million in Q3 2025, a 92.2% increase from the prior quarter[8] - Constructed assets and construction in progress reached over $308 million at quarter-end, an increase of $108 million year-over-year[4] Liquidity and Financial Guidance - The company has a strong liquidity position with consolidated cash and US Treasuries totaling $47.9 million as of September 30, 2025[4] - The company reiterates guidance to reach operating cash-flow breakeven on a consolidated run-rate basis by year-end 2025[4] Operational Expansion - Miami Opa Locka (OPF) Phase 2 is expected to be completed by Q2 2026, adding 111,720 rentable square feet to the portfolio[9] - As of Q3, the company is conducting flight operations at nine airports, with Dallas Addison (ADS) Phase 1 and Phoenix Deer Valley (DVT) Phase 1 surpassing 50% occupancy[12] - The company expects to add four additional airports by the end of 2025, totaling 23 airports in operation or development[8] Strategic Partnerships and Financing - The company has executed a binding Letter of Intent with a JV Partner for a $30.75 million cash payment to lease a hangar at Miami OPF Phase 2[12] - The company is exploring financing options to minimize the cost of capital, including the potential issuance of $75-100 million in additional tax-exempt Put bonds[12]

Business Aircraft Market - The cumulative square footage of the U.S. business aircraft fleet increased by 61% from 2010 to 2023, with a 102% increase in larger private jets over the same period [133]. - A forecast predicts up to 8,500 new business jet deliveries worth over $285 billion between 2025 and 2034, with over two-thirds expected to be larger private jets [133]. - The physical footprint of the U.S. business aviation fleet grew by almost 36 million square feet in the past fourteen years, highlighting the demand for hangar space [133]. Company Operations and Strategy - The company operates a portfolio of ground leases across various U.S. airports, with a total rentable square footage of 1,024,318 square feet as of September 30, 2025 [144]. - The occupancy rate across the company's properties in operation is 71.3% as of September 30, 2025 [144]. - The company expects to realize economies of scale in construction through a prototype hangar design, enhancing capital efficiency and mitigating refinance risk [137]. - The company targets high-end tenants in markets with a shortage of private and FBO hangar space, addressing the imbalance between supply and demand [136]. - The company has long-term ground leases at key airports, with lease expirations extending as far as 2097 [140]. - The company is developing home basing hangar campuses to capitalize on existing hangar supply constraints at major U.S. airports [136]. Financial Performance - Rental revenue for Q3 2025 was approximately $5.7 million, a 61% increase from $3.5 million in Q3 2024, driven by operations at CMA and increased occupancy at multiple hangar campuses [179]. - Fuel revenue for Q3 2025 reached approximately $1.6 million, a 193% increase from $0.5 million in Q3 2024, primarily due to fuel sales at the CMA hangar campus [180]. - Total revenue for Q3 2025 was approximately $7.3 million, up $3.2 million or 78% from $4.1 million in Q3 2024 [178]. - Total expenses for Q3 2025 increased by $6.0 million, or 67%, to approximately $15.0 million from $9.0 million in Q3 2024 [178]. - Operating loss for Q3 2025 was approximately $7.7 million, compared to a loss of $4.9 million in Q3 2024, reflecting increased operating expenses [178]. Cost Management - The anticipated retrofitting costs for design defects in hangar buildings are estimated to be between $26 million and $28 million, extending construction timelines by three to five months for affected projects [153]. - Construction material costs, particularly for steel and concrete, are subject to inflationary pressures and tariffs, impacting overall project costs [152]. - The company aims to mitigate inflationary pressures and reduce construction costs through shared savings clauses in contracts with general contractors [155]. Capital and Financing - A Credit Agreement was entered into in September 2025, providing a term loan facility of up to $200 million, with the potential to increase to $300 million [147]. - The company plans to access capital markets through various agreements and facilities to fund additional airport campuses [159]. - The company has the ability to fund up to $50 million in new projects outside the original five locations, contingent on approvals and consultant reports [158]. Cash Flow and Liquidity - As of September 30, 2025, total cash, restricted cash, investments, and restricted investments amounted to approximately $47.9 million, a decrease from $127.2 million as of December 31, 2024 [209]. - Net cash used in operating activities was approximately $6.9 million for the nine months ended September 30, 2025, compared to $6.6 million for the same period in 2024 [227]. - Net cash used in investing activities was approximately $44.3 million for the nine months ended September 30, 2025, a decrease of $52.7 million compared to the same period in 2024 [229]. - Net cash used in financing activities was approximately $6.7 million for the nine months ended September 30, 2025, compared to a net cash provided of $0.2 million for the same period in 2024 [231]. Employee and Operational Expenses - Employee compensation and benefits expenses rose by approximately $1.9 million, or 61%, to $5.0 million in Q3 2025, driven by increased headcount and equity compensation [186]. - Ground lease expenses increased by approximately $1.0 million, or 42%, to approximately $3.5 million in Q3 2025, influenced by new ground leases signed and those assumed from the CMA transaction [183]. - Depreciation and amortization expenses increased by approximately $1.1 million, or 175%, for Q3 2025, primarily due to the acquisition of CMA and the commencement of operations at new campuses [184]. - Campus operating expenses rose by approximately $1.0 million, or 87%, to approximately $2.1 million in Q3 2025, driven by increased personnel costs and operational expenses [181]. Debt and Compliance - The company is required to maintain a debt service coverage ratio of at least 1.25 for each applicable test period, commencing with the quarter ending December 31, 2024 [219]. - As of September 30, 2025, the company was in compliance with all debt covenants [221].