Sky Harbour Group Corp. (NYSE: SKYH) reported third-quarter 2025 results that underscore the company's transition from development to cash-generating operations, with consolidated revenue reaching approximately $7.3 million, a 78% increase year-over-year and an 11% sequential gain. The company now operates nine fully functional campuses, including recently opened sites at Dallas Addison (ADS) and Denver Centennial (APA), as it scales its network of premium hangar facilities across Tier 1 airports.
Rental revenue rose to roughly $5.7 million, while fuel revenue contributed about $1.6 million, driven by higher utilization at both stabilized and recently opened campuses. Stabilized sites such as Sugar Land (SGR) and Nashville (BNA) remained at or near full occupancy, while Phoenix Deer Valley (DVT) and Dallas Addison surpassed the 50% leased threshold. Pre-leasing activity at future developments, particularly Bradley International (BDL) and Washington Dulles (IAD), secured early commitments without material pricing concessions, reinforcing the company's pricing power in a supply-constrained market.
Construction and development spending continued at a robust pace, with constructed assets and construction-in-progress exceeding $308 million at quarter-end. Active projects include Phoenix Deer Valley, Dallas Addison, Denver Centennial, and Miami Opa-Locka Phase 2. The company's vertically integrated platform, comprising Ascend Aviation Services and Stratus Building Systems, continues to enhance quality control and manage per-square-foot costs, improving delivery timelines across the network.
Gross margin improved to 13.5% in Q3 2025, compared to 10.2% in the prior-year quarter and a negative 2.0% in Q2 2025, reflecting the ramp-up of new campuses. Operating loss widened to $(7.7) million from $(4.8) million in the prior-year period, primarily due to increased depreciation and general and administrative expenses. Net loss 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 as more campuses transition to income generation.
Management strengthened the capital stack by signing a joint venture letter of intent on an SH34 hangar at Opa-Locka Phase 2, providing flexible, lower-cost funding to support the next wave of growth. The company ended the quarter with approximately $48.0 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 5–6 upcoming developments across Tier 1 airports.
Sky Harbour's strategic focus on high-demand, supply-constrained markets positions it to capitalize on the growing need for premium hangar space. With multiple campuses in development, including Bradley, Dulles, Orlando Executive, Salt Lake City, Portland-Hillsboro, and Long Beach, the company is well-positioned for sustained growth. The transition from construction to cash flow generation at newly opened campuses is expected to drive margin expansion and improved profitability over the coming quarters.
