Summary of Sky Harbour Group (SKYH) Conference Call - June 05, 2025 Company Overview - **Company**: Sky Harbour Group (SKYH) - **Industry**: Aviation Real Estate - **Business Model**: Focuses on hangar construction at airports, leasing to general aviation business jet owners [3][4] Key Points Business Operations - **Hangar Construction**: Acquires land through long-term ground leases (typically 50 years) at U.S. airfields, designs, constructs, and operates hangars [5][6] - **Tenant Profile**: Primarily high net worth individuals and corporate aviation fleets [6] - **Revenue Streams**: Includes hangar leasing and aviation services such as fueling [6][24] Market Opportunity - **Demand Drivers**: Increasing size and longevity of business aviation fleet leading to higher demand for hangar space [9][10] - **Supply Constraints**: Insufficient hangar supply due to local municipalities' reluctance to invest in hangar construction, typically relying on FBOs [10][12] Financial Metrics - **Target Returns**: Aims for low to mid-teen NOI yields, with current unit economics showing an average development cost of $300 per square foot and rental income of $45 per square foot [16][17] - **Debt Structure**: Utilizes tax-exempt municipal bonds for financing, with a current average yield of 4.18% and plans to issue new debt at 5.5% to 5.75% [19][20][21] Growth Strategy - **Expansion Plans**: Currently operates 18 ground leases, aiming for 23 by year-end, with ongoing efforts to secure additional leases [15][26] - **Vertical Integration**: Acquired a hangar manufacturing company to reduce costs and improve margins, targeting a 5% savings on hard costs [33][34] Competitive Landscape - **FBOs**: While FBOs have considered entering the home basing sector, they remain focused on fuel sales and have not significantly shifted their business model [39][40] - **Barriers to Entry**: Challenges in airport land acquisition and the need for established relationships with airport authorities limit new entrants [41][42] Recent Developments - **Lease-Up Strategy**: Ongoing leasing efforts at newly constructed campuses, balancing speed of lease-up with achieving target rental rates [36][38] - **Capital Position**: Currently holds $97.5 million in cash, earmarked for ongoing construction and future debt issuance [25] Shareholder Relations - **Boston Omaha Corp**: Noted as a significant shareholder, currently trimming their position to raise capital for other investments, which may impact stock performance [44][46] Additional Insights - **Operational Efficiency**: Plans to bring more construction processes in-house to enhance control over costs and timelines [32][34] - **Future Revenue Potential**: Ground leases are viewed as critical assets, representing future revenue streams post-construction [23][24] This summary encapsulates the key aspects of Sky Harbour Group's business model, market dynamics, financial metrics, growth strategies, competitive landscape, and recent developments as discussed in the conference call.

Core Insights - Sky Harbour Group Corp. (NYSE: SKYH) demonstrated strong momentum in Q1 2025, driven by the expansion of its aviation infrastructure and increased operational capacity [1][7] - The company initiated operations at its Phoenix Deer Valley campus and is preparing for openings at Dallas Addison and Denver Centennial, scheduled for Q2 2025 [1] - Sky Harbour added a new facility at Seattle's Boeing Field, with approximately 90,000 sq ft of rentable space, and signed new ground leases at Hillsboro and Stewart International [1] Financial Performance - Sky Harbour reported total revenue of $5.6 million in Q1 2025, representing a 133% increase from $2.4 million in Q1 2024 and a 20% sequential increase [7] - As of the end of Q1 2025, the company's total assets amounted to $553.7 million, with liquidity remaining strong at $97.5 million [7] Operational Expansion - The company's portfolio includes eight operational campuses, one under construction, and ten in pre-development, positioning it for significant long-term growth [1][7]

2024 Q4 Earnings Webcast March 27th, 2025 DI SCLAI M ER This Presentation includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "goal," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predict or indicate future events or trends or tha ...

Financial Performance & Construction - Sky Harbour Group Corp is experiencing accelerating construction and increasing revenues[9] - Cost of construction and constructed assets are increasing over time, as shown in the provided chart[10, 25] - Quarterly revenues are also increasing over time, as shown in the provided chart[12, 27] - Sky Harbour Capital - PABS Obligated Group anticipates a step up in 2025 with three new campus openings[24] Expenses & Cash Flow - Operating expenses are increasing over time, as shown in the provided chart[18, 32] - Net cash flow used in operating activities is also increasing over time, as shown in the provided chart[16] - U.S Treasuries and cash are approximately $97.5 million, comprised of $83.65 million in cash and $13.813 million in treasuries[48] Strategic Initiatives & Development - Sky Harbour is accelerating its site acquisition pace to drive long-term value[33] - A new ground lease was signed in Hillsboro (HIO) in Portland, OR, with a potential stabilized revenue of $7.0 million[39, 43] - Sky Harbour is scaling up construction through vertical integration to improve speed, cost, scale, build quality, versatility, and unit economics[44, 45] - Sky Harbour is gearing up for order-of-magnitude scale-up in site acquisition, development, leasing, and operations[55, 57, 58]

Company Performance - Sky Harbour Group Corporation (SKYH) reported a quarterly loss of $0.11 per share, which was better than the Zacks Consensus Estimate of a loss of $0.25, representing an earnings surprise of 56% [1] - The company posted revenues of $5.59 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 5.20%, compared to revenues of $2.4 million a year ago [2] - Over the last four quarters, Sky Harbour Group has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Market Outlook - Sky Harbour Group shares have increased by approximately 0.1% since the beginning of the year, while the S&P 500 has declined by 0.6% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.05 on revenues of $7.85 million, and for the current fiscal year, it is -$0.20 on revenues of $33.85 million [7] - The Zacks Industry Rank for Aerospace - Defense Equipment is currently in the top 8% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] Earnings Estimate Revisions - The estimate revisions trend for Sky Harbour Group is mixed, leading to a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - As of the end of the first quarter, assets under construction and completed construction reached over $275 million, driven by construction activities in Phoenix, Dallas, and Denver [7] - Revenues increased by 133% year-over-year and 20% sequentially, attributed to the acquisition of the Camarillo Campus [7] - Operating expenses increased moderately, with a notable rise in fuel expenses and startup costs due to increased headcount and operations at the Camarillo Hangar Campus [9][11] - Cash flow from operating activities improved, with expectations to reach cash flow breakeven by the end of the year [8][9] Business Line Data and Key Metrics Changes - The financial results of the wholly owned subsidiary Sky Harbor Capital showed flat revenues in recent quarters, but a significant increase is expected in Q2, Q3, and Q4 as new campuses are leased [11] - Operating expenses rose due to onboarding personnel in anticipation of new campus operations [12] Market Data and Key Metrics Changes - The company is expanding its ground lease pipeline, with new leases in Seattle and Portland, indicating growth in the Pacific Northwest [13] - The average rent per square foot has increased to $35.75, which is 23% higher than previous estimates, reflecting strong demand and inflation in airport land [16][18] Company Strategy and Development Direction - The company is focusing on vertical integration in construction to manage costs, improve build quality, and speed up project timelines [21][23] - The strategy includes enhancing the service offering and building strong self-sufficient teams at each campus to improve operational efficiency [51][52] - The company aims to maintain its competitive advantage through effective site acquisition, construction, leasing, and operations integration [59][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for business aviation services, noting that macroeconomic uncertainties have not impacted their operations [88] - The company is prepared for potential construction slowdowns and is focused on maximizing the benefits of its operational scale [88] - Management acknowledged the concern of new competition but believes their established skills in site acquisition and integrated operations provide a sustainable competitive edge [59][65] Other Important Information - The company has approximately $97.5 million in cash, focusing on short-term investments for future construction [27] - The next debt issuance is being prepared, with expectations of raising between $150 million to $175 million [55][56] Q&A Session All Questions and Answers Question: Can you provide more color on your plans to raise debt this year? - The company is preparing for a financing of $150 million to $175 million for new projects, monitoring market conditions closely [55][56] Question: Could you speak to the prospect for increased competition over time from operators that would seek to replicate your model versus FBOs? - Management expressed concern about new competition but believes their lead is increasingly sustainable due to their unique skills in site acquisition and integrated operations [59][65] Question: What is the expected interest rate and timing on the expected term financing and or bond issuance in 2025? - The company anticipates a bond deal with an average yield of approximately 5.50% and is exploring bank facilities with proposals in the SOFR plus 200 area [96][98] Question: Are you seeing any impacts to lease term negotiations given the uncertainty in the markets? - Management indicated that there have been no significant impacts on lease term negotiations due to market uncertainties [89] Question: Can you provide details on Nashville occupancy? - Nashville occupancy is reported at 92%, with actual occupancy exceeding 100% in leased areas due to the nature of semi-private hangars [90][92]

Financial Data and Key Metrics Changes - Consolidated revenues increased by 133% year-over-year and 20% sequentially, driven by the acquisition of the Camarillo Campus [7] - Cash flow from operating activities improved, with expectations to reach cash flow breakeven by the end of the year [8][9] - Operating expenses increased moderately, with a notable rise in fuel expenses and startup costs related to new operations [9][10] Business Line Data and Key Metrics Changes - The financial results of Sky Harbor Capital, including Houston, Miami, and Nashville campuses, showed flat revenues in recent quarters, with expectations for significant increases in Q2, Q3, and Q4 as new campuses lease up [10][11] - The company is ramping up operations at three new campuses in Phoenix, Addison, and Denver, with leasing activities already underway [35][36] Market Data and Key Metrics Changes - The company is expanding its ground lease pipeline, with new leases in Seattle and Portland, indicating growth in the Pacific Northwest [12][31] - The average rent per square foot has increased significantly, with current rates at $35.75, which is 23% higher than previous estimates [15][16] Company Strategy and Development Direction - The company is focusing on vertical integration in construction to manage costs, improve build quality, and speed up project timelines [20][21] - There is a strong emphasis on site acquisition as a competitive advantage, with a pipeline of over 100 airports being targeted [58][60] - The company aims to differentiate itself through a bundled real estate and service offering, enhancing its competitive moat [25][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for business aviation services, noting that macroeconomic uncertainties have not impacted their operations [88][89] - The company is prepared to navigate potential construction slowdowns and remains focused on accelerating site acquisitions [82][88] Other Important Information - The company has approximately $97.5 million in cash, with a strategy focused on short-term U.S. Treasury investments [26] - There are ongoing preparations for a debt issuance, with potential amounts increasing from $150 million to $175 million [54][56] Q&A Session Summary Question: Plans to raise debt this year - The company is preparing for a financing of $150 million to $175 million for upcoming projects, monitoring market conditions closely [54][56] Question: Competition from operators replicating the model - Management expressed concern about new competition but believes their lead is sustainable due to unique site acquisition skills and integrated operations [58][60] Question: Expected interest rates and timing on financing - Interest rates for bond deals are projected around 5.50%, with bank facilities expected to be in the SOFR plus 200 area [97][99] Question: Nashville occupancy - Nashville occupancy is reported at 92%, with actual occupancy exceeding 100% due to the nature of semi-private hangars [90][92]

Financial Data and Key Metrics Changes - As of the end of Q1 2025, assets under construction and completed construction reached over $275 million, driven by construction activities in Phoenix, Dallas, and Denver [7] - Revenues increased by 133% year-over-year and 20% sequentially, attributed to the acquisition of the Camarillo Campus [7] - Operating expenses increased moderately, with a notable rise in fuel expenses and startup costs due to increased headcount and full operations at the Camarillo Hangar Campus [10][12] Business Line Data and Key Metrics Changes - The financial results of Sky Harbor Capital, including Houston, Miami, and Nashville campuses, showed flat revenues in recent quarters, with expectations for significant increases in Q2, Q3, and Q4 as new campuses lease up [12] - Operating expenses rose due to onboarding personnel in anticipation of new campus operations [12] Market Data and Key Metrics Changes - The company is expanding its ground lease portfolio, with new leases in Seattle and Portland, and anticipates significant revenue growth from these locations [14][15] - The average rent per square foot has increased from $29.08 to $35.75, representing a 23% increase over the original estimate, with expectations of reaching $40.06 based on recent leases [17][18] Company Strategy and Development Direction - The company is focusing on vertical integration in construction to manage costs, improve build quality, and speed up project timelines [22][24] - The strategy includes a significant ramp-up in development activities, with plans for 23 campuses by the end of 2025 and 16 additional campuses in development [38][47] - The company aims to differentiate itself through a unique bundled real estate and service offering, targeting high-quality construction and operational efficiency [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving cash flow breakeven by the end of 2025 as new campuses ramp up leasing [8] - The company remains optimistic about demand in business aviation, with no significant impacts from macroeconomic uncertainties reported [90] - Management acknowledged concerns about potential competition but emphasized the strength of their site acquisition capabilities and integrated operational model as competitive advantages [60][62] Other Important Information - The company has approximately $97.5 million in cash and U.S. Treasuries, with a focus on short-term investments for future construction [30] - The company is preparing for a debt issuance of $150 million to $175 million to fund new projects, monitoring market conditions closely [56][99] Q&A Session Summary Question: Plans to raise debt this year - The company is preparing for a financing of $150 million to $175 million for upcoming projects, keeping an eye on market conditions [56][57] Question: Competition from operators replicating the model - Management expressed concern about new competition but believes their integrated model and site acquisition expertise provide a sustainable competitive advantage [60][62] Question: Expected interest rate and timing on financing - Interest rates for a bond deal are expected to be around 5.5%, with bank facilities potentially in the SOFR plus 200 area [99][100] Question: Nashville occupancy - Nashville occupancy is reported at 92%, with actual occupancy exceeding 100% due to the nature of semi-private hangars [92][94]

[Form 8-K Current Report](index=1&type=section&id=Form%208-K%20Current%20Report) [Registrant Information](index=1&type=section&id=Registrant%20Information) This section details Sky Harbour Group Corporation's identification, address, jurisdiction, and stock exchange listing - The report was filed by Sky Harbour Group Corporation, a Delaware-incorporated company, on May 13, 2025[1](index=1&type=chunk)[2](index=2&type=chunk) - The registrant is identified as an emerging growth company[4](index=4&type=chunk) Stock Exchange Listing | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :--- | :--- | :--- | | Class A common stock, par value $0.0001 per share | SKYH | The New York Stock Exchange | | Warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 per share | SKYH WS | The New York Stock Exchange | [Item 2.02. Results of Operations and Financial Condition](index=3&type=section&id=Item%202.02.%20Results%20of%20Operations%20and%20Financial%20Condition) This section details Sky Harbour Group Corporation's Q1 2025 financial results announcement, with furnished but not filed information - The company announced its financial results for the three months ended March 31, 2025, through a press release and an investor presentation on May 13, 2025[5](index=5&type=chunk)[6](index=6&type=chunk) - The information, including Exhibits 99.1 and 99.2, is explicitly stated as not "filed" for the purposes of Section 18 of the Exchange Act, limiting its legal liability under certain securities laws[8](index=8&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This section provides a standard safe harbor warning for forward-looking statements, highlighting inherent risks and uncertainties - The report includes forward-looking statements and cautions readers against placing undue reliance on them, directing them to the "Risk Factors" section of the company's Annual Report on Form 10-K for more information[9](index=9&type=chunk) [Item 9.01. Financial Statements and Exhibits](index=4&type=section&id=Item%209.01.%20Financial%20Statements%20and%20Exhibits) This section lists the exhibits accompanying the Form 8-K report, including the press release and investor presentation List of Exhibits | Exhibit Number | Exhibit Title | | :--- | :--- | | 99.1 | Press Release dated May 13, 2025 | | 99.2 | Investor Presentation dated May 13, 2025 | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | [Signature](index=4&type=section&id=SIGNATURE) The report is formally concluded and authorized by the signature of the company's Chief Executive Officer - The report was signed on May 13, 2025, by Tal Keinan, Chief Executive Officer of Sky Harbour Group Corporation[15](index=15&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF Sky Harbour Group Corporation (Exact name of registrant as specified in its Charter) Delaware 85-2732947 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number: 001-3964 ...