Sky Harbour Group (NYSEAMERICAN:SKYH) executives highlighted rapid revenue growth, expanding development activity, and a shift in funding strategy during the company’s 2025 year-end earnings call and webcast. Management also discussed progress toward breakeven operating performance, leasing momentum across newer campuses, and plans to improve operating efficiency in 2026.
2025 results and operating trends
Chief Financial Officer Francisco Gonzalez said assets under construction and completed construction continued to rise, reaching “over $328 million,” driven by activity in Miami (phase two and a new campus), Bradley International, and phase two at Addison in the Dallas area. He added that the company expects the construction asset base to accelerate further after breaking ground at Salt Lake City and with planned groundbreakings at Poughkeepsie, Orlando Executive, Trenton, and Dallas International later in the year.
On cash generation, Gonzalez said consolidated cash flow from operations turned positive “for the first time” in the company’s history, but he emphasized this was “mostly driven” by $5.9 million received from rent tied to a lease extension that closed in December. He described the extended lease as the company’s longest tenant lease to date, at 12 years. Management also said Adjusted EBITDA reached breakeven on a run-rate basis in December.
Adjusted EBITDA and non-cash items
Chief Accounting Officer Mike Schmitt reviewed the company’s use of Adjusted EBITDA as a supplemental, non-GAAP measure, describing it as GAAP net income (or loss) before specified add-backs and subtractions, consisting of “entirely non-cash or non-operating elements.” He pointed to a “significant unrealized gain” on outstanding warrants affecting results in the fourth quarter and full year.
Schmitt said Adjusted EBITDA improved for the third consecutive quarter, reaching approximately negative $1 million in Q4. He attributed the sequential improvement to higher occupancy and rental rates across campuses, particularly late in the fourth quarter, as run rates “improved and turned positive.”
Leasing strategy, rent growth, and pre-leasing
Management emphasized leasing momentum across both stabilized campuses and those in initial lease-up. Alan (identified on the call as “Cal”) said several stabilized campuses have begun moving into “greater than 100%” potential occupancy, which management has discussed previously. In the initial lease-up group, he said Phoenix and Dallas were progressing faster than expected, while Denver was slower but “now coming along nicely,” with management noting potential seasonal effects from opening during winter.
Executives described a deliberate leasing strategy for new campuses: signing short-term leases, including six-month deals, at lower rates to reach full occupancy quickly, then negotiating longer-term leases at targeted rents once the campus is effectively full. Management also highlighted a widening spread between high and low rents at campuses in initial lease-up, which it attributed to that mix of short- and long-term contracts.
The company also provided an update on re-leasing at mature campuses. Management said that for leases that came to term in 2025 in Miami and Nashville, the average markup from the final year of the prior lease to the first year of the new lease was 22%. Executives characterized the result as evidence of supply-demand imbalance at airports, while cautioning they were not projecting 22% increases indefinitely. They also noted that multi-year leases include annual CPI-based escalators, and that the floor on escalators has moved from 3% historically to 4% on newer leases.
On pre-leasing, executives said they are increasingly signing binding leases well ahead of opening, including leases that involve deposits. They also explained why average rents on pre-leasing campuses can appear higher than those on stabilized or initial lease-up campuses: pre-leasing rent figures were described as “rent alone” and do not include fuel revenue, while some other campus figures include rent and fuel. Management also said it believes the airports it is now targeting are stronger than those selected early in the company’s development program.
Development pipeline and delivery schedule
Executives said Sky Harbour spent much of 2025 scaling its development program to operate “at scale,” with about 750,000 rentable square feet under construction as the company enters 2026. Management stressed that the under-construction pipeline discussed was based on existing ground leases and may not capture future airports secured later that could enter construction in 2027 and beyond.
Management outlined a campus delivery schedule, including expectations to deliver Miami phase two “toward the end of next month,” Bradley, Connecticut in September, and Addison Two at the end of the year. Executives said they feel comfortable with their ability to deliver on the 2026 and early 2027 schedule, while acknowledging additional ramp-up will be needed for a larger surge anticipated in 2027.
Financing, liquidity, and capital strategy
Treasurer Tim Herr said the company finalized a five-year tax-exempt drawdown facility with JPMorgan to fund upcoming development projects, which Sky Harbour expects to draw over the next two years as airfields become ready for construction. To fund the corporate contribution required for the facility, Sky Harbour closed on $150 million of tax-exempt subordinate loans, which Herr said were “3 times oversubscribed” with 18 institutional investors. The bonds carry a five-year maturity, a 6% fixed interest rate, and a call option beginning in year four, with management planning an eventual takeout of the bank facility and subordinate bonds using long-term tax-exempt bonds once projects are completed and cash flowing.
Gonzalez said the subordinate bonds represent a “fundamental rethinking” of unit economics and capital formation, noting they were issued earlier than previously anticipated and while the senior Obligated Group credit remains unrated. Using an illustrative example, he said the company targets $40 per square foot in rent and $5 in fuel margin, with $9 per square foot of operating expenses, for an illustrative $36 per square foot of NOI. He said that prior assumptions of roughly 70% leverage produced an illustrative return on equity near 30%, while increased debt usage could lift the illustrative return on equity to “higher than 60%,” while emphasizing the company intends to be deliberate about leverage and pursue refinancing well ahead of the five-year maturities.
At year-end, the company reported $48 million in cash and U.S. Treasuries, and management pointed to additional liquidity from the $150 million bond proceeds and the $200 million committed JPMorgan facility, which was undrawn at year-end but expected to begin funding capex at Bradley in the current quarter. Gonzalez described the company as having built a “fortress of liquidity” and said it is fully funded to “double the size” of its campuses and exceed 2 million rentable square feet.
Management also discussed potential asset monetization tools, including hangar sales or ultra-long-term prepaid leases, and lease prepayments, but emphasized it would be selective and valuation-driven. Executives said some tenants prefer to “acquire” rather than lease, and management framed these deals as potential cost-of-capital tools rather than an attempt to exceed the net present value of leasing.
In the Q&A, management said it expects to sign new ground leases in 2026, but plans to shift future guidance away from simply counting airports and toward metrics tied to total NOI capture. Executives also said Q1 is expected to include significant cash outflows tied to annual compensation and no campus openings, but that performance should improve as Miami phase two opens in Q2, followed by Bradley and Addison phase two later in the year, which they said could place the company “in the black” toward year-end if projects remain on schedule.
About Sky Harbour Group (NYSEAMERICAN:SKYH)
Sky Harbour Group Inc is a U.S.-based real estate development and operating company focused on private aviation infrastructure. The company specializes in the acquisition, design and management of fixed-base operations (FBOs), aircraft hangarage and private terminals that serve business and general aviation operators. By providing expedited ground handling, concierge services and state-of-the-art facilities, Sky Harbour seeks to streamline the operations of private jet owners, fractional-ownership programs and charter operators while reducing congestion at major airports.
Through strategic leases and joint-venture partnerships, Sky Harbour has established a growing presence at key regional and metropolitan airports across the United States.
