Stonegate Capital Partners Updates Coverage on Sky Harbour Group Corporation (SKYH) Q425

Core Insights - Sky Harbour Group Corporation reported a consolidated revenue of $27.5 million for FY25, representing an 87% year-over-year increase, driven by contributions from CMA, increased occupancy at various locations, and new operations at DVT, ADS, and APA [1][6]. Revenue Breakdown - The revenue consisted of $21.6 million from rental income and $6.0 million from fuel revenue [1]. - The growth in revenue was attributed to a full year of contribution from CMA and improved occupancy rates at BNA, OPF, and SJC [1]. Leasing and Development - Management indicated that leasing activities in Phoenix and Dallas were progressing faster than anticipated, while Denver's initial pace was slower but showing improvement [1]. - Early lease-up activities may involve short-term leases at lower rates to boost occupancy before transitioning tenants to longer-term leases at target pricing [1]. - An active pre-leasing strategy is in place for future campuses, particularly at Bradley, with pre-leasing rents exceeding existing campus averages due to long-term leases signed [1]. Financial Performance - The company has invested over $328 million in development, securing funding for the next six projects totaling more than 1.0 million rentable square feet [6]. - Profitability has improved significantly, with a gross profit margin of 7.6% and adjusted EBITDA reaching run-rate breakeven in December 2025 [6].