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 ...

Sky Harbour Group Corporation (SKYH) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, SKYH's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross." A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving av ...

Core Insights - Sky Harbour Group Corp. (NYSE: SKYH) has shown strong growth and resilience in FY24, effectively managing economic challenges such as inflation and high interest rates while expanding its aviation infrastructure portfolio [1][7] - The company achieved a significant milestone with consolidated revenues of $14.8 million, marking a 95% year-over-year increase from FY23 [7] - Key developments include the completion of major construction projects, acquisition of existing facilities, and the introduction of the SH-37 hangar product, which is designed for modern business jets, enhancing its competitive edge in premium aviation infrastructure [1][7] Financial Performance - Consolidated revenues reached $14.8 million, reflecting a 95% increase compared to FY23 [7] - Total leasable space expanded to approximately 580,000 square feet, with over 2.1 million square feet currently under construction or in development [7] Strategic Initiatives - The launch of the SH-37 hangar product represents a strategic move to cater to the needs of modern business jets, thereby strengthening the company's market position [1][7] - The company has maintained solid occupancy rates across its operational campuses, indicating effective management and demand for its facilities [1]

Financial Data and Key Metrics Changes - In Q4, consolidated revenues increased by 13% sequentially over Q3, with full-year revenues doubling compared to 2023 [8] - Operating expenses in Q4 rose primarily due to hiring for new campuses and noncash accruals for ground lease payments, which amounted to over $1.4 million [9][10] - The company expects to reach cash flow breakeven on a consolidated basis in Q4 of this year [11] Business Line Data and Key Metrics Changes - Assets under construction and completed construction reached over $250 million by year-end, driven by activities in Phoenix, Dallas, and Denver [8] - Revenues from the wholly owned Sky Harbour Capital subsidiary were flat from Q3 to Q4, but a significant increase in revenues is expected in Q2, Q3, and Q4 of this year as campuses are leased up [14][15] Market Data and Key Metrics Changes - The company reported strong liquidity with approximately $127 million in cash and U.S. Treasury bills, excluding $32 million used for the acquisition of CloudNine and Skyro 5 [27] - The long bond trading has rallied over the past year, and the company is in discussions with rating agencies to secure investment-grade ratings for existing bonds [28][29] Company Strategy and Development Direction - The company aims to accelerate the pace of ground lease signings, with a potential to exceed 50 campuses in the next 3 to 5 years [72][73] - Focus on site acquisition, development, leasing, and operations is increasingly integrated, with a strong emphasis on quality and speed in construction [45][65] - The company is exploring additional revenue streams but prioritizes establishing a strong brand and operational excellence [66][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential, citing a robust pipeline of opportunities and a favorable market environment for business aviation [73][74] - The company anticipates that inflation at airports will outstrip CPI significantly, impacting future lease rates positively [90] - Management is cautious about macroeconomic factors but believes they are well-positioned to navigate challenges [140][141] Other Important Information - The introduction of adjusted EBITDA as a key performance metric aims to provide a clearer view of operating performance [17][19] - The company is actively working on cost-saving initiatives in construction, including national procurement strategies [130][134] Q&A Session Summary Question: Potential for 50 campuses in 3 to 5 years - Management indicated that if guidance is met, they would be halfway to this goal by the end of the year, with an exponential growth in site acquisitions [72][73] Question: Expectations on price per square foot for new leases - Management clarified that additional revenue streams are not a priority at the moment, focusing instead on securing marquee airport sites [77][78] Question: Campus development progress in 2026 - Management expects to continue at least at the same pace as 2025, with a potential for significant growth [82][83] Question: Step-up in rents and market rates - Management noted that while initial lease-ups may see significant compromises, subsequent leases are expected to align more closely with market rates [87][88] Question: Funding for construction costs - Management is deliberate in capital raising plans, aiming for positive cash flow by 2026 to support future growth [94][95] Question: Update on $150 million bond issuance - Management reported ongoing interest from institutional investors and is conducting feasibility studies for the bond issuance [100][101] Question: Expansion opportunities for RapidBuilt - Management confirmed interest from third parties for manufacturing opportunities, but the focus remains on internal needs for Sky Harbour [106][110] Question: Impact of tariffs on material costs - Management acknowledged recent increases in steel prices due to tariffs but indicated that preemptive measures helped mitigate impacts [140][141]

Financial Data and Key Metrics Changes - In Q4, consolidated revenues increased by 13% sequentially over Q3, with full-year revenues doubling compared to 2023 [8] - Operating expenses in Q4 rose due to hiring for new campuses and noncash accrual of ground lease expenses, which amounted to over $1.4 million [9][10] - The company expects to reach cash flow breakeven on a consolidated basis in Q4 of this year [11] Business Line Data and Key Metrics Changes - Assets under construction and completed construction reached over $250 million by year-end, driven by activities in Phoenix, Dallas, and Denver [8] - Revenues from the wholly owned Sky Harbour Capital subsidiary were flat from Q3 to Q4, but a significant increase in revenues is expected in Q2, Q3, and Q4 of this year as campuses are leased up [14][15] Market Data and Key Metrics Changes - The company reported strong liquidity with approximately $127 million in cash and U.S. Treasury bills, excluding $32 million used for the acquisition of CloudNine and Skyro 5 [27] - The long bond trading has rallied over the past year, and the company is in discussions with rating agencies to secure investment-grade ratings for existing bonds [28][29] Company Strategy and Development Direction - The company aims to accelerate the pace of ground lease signings, with a potential to exceed 50 campuses in the next 3 to 5 years [72][73] - Focus on site acquisition, development, leasing, and operations is increasingly integrated, with a strong emphasis on quality and speed in construction [45][65] - The company is exploring additional revenue streams but prioritizes establishing a strong brand and operational excellence [66][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential, citing a robust pipeline of opportunities and the ability to capitalize on past investments [73][80] - The company anticipates that inflation at airports will outstrip CPI significantly, impacting future lease rates positively [90] - Management is cautious about macroeconomic factors but believes they are well-positioned to navigate challenges [140] Other Important Information - The introduction of adjusted EBITDA as a key performance metric aims to provide a clearer view of operating performance [17][19] - The company is focused on maintaining a strong cash management strategy while preparing for future debt financing [29][30] Q&A Session Summary Question: Potential for 50 campuses in 3 to 5 years - Management indicated that if guidance is met, they would be halfway to this goal by the end of the year, with an exponential growth in site acquisitions expected [72][73] Question: Expectations on price per square foot for new leases - Management clarified that additional revenue streams are not a priority at the moment, focusing instead on securing marquee airport sites [77][78] Question: Campus development progress in 2026 - Management did not provide specific guidance for 2026 but suggested that development would continue at least at the pace of 2025 [82] Question: Step-up in rents and market rates - Management noted that while significant step-ups in rents are expected, the third lease may not see as dramatic an increase as the second [85][88] Question: Funding gap for square footage in development - Management emphasized a deliberate capital raising plan, with a focus on maintaining liquidity and exploring partnerships with real estate infrastructure funds [92][96] Question: Update on raising $150 million - Management reported positive interest from institutional investors and is conducting feasibility studies for upcoming bond financing [99][101] Question: Expansion opportunities for RapidBuilt - Management confirmed interest from third parties for manufacturing opportunities but emphasized that the primary focus remains on Sky Harbour's needs [106][110] Question: Impact of tariffs on procurement - Management acknowledged recent hikes in steel prices due to tariffs but noted that preemptive measures were taken to mitigate impacts [140]