Sky Harbour Group (SKYH) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered record 109% year-over-year revenue growth, driven by new campus openings, higher occupancy, and premium lease renewals, with San Jose reaching 58% leased and further gains expected.

• Net income for Q2 2024 was $4.2 million, a $5.8 million improvement from a net loss in Q2 2023, primarily due to an $8.2 million unrealized gain on warrants, while the company continues to invest in development.

• The company is executing an accelerated growth plan, expanding to 14 campuses with Salt Lake City and targeting up to 22 airports by 2025, with 33 projects expected to start or complete between 2025 and 2026.

• Management team was strengthened with key hires in airport operations, construction, and development to support expansion.

Financial highlights

• Q2 2024 rental revenue grew 109% year-over-year to $3.6 million, with consolidated revenues up 50% sequentially from Q1 2024; six-month revenue reached $6.0 million.

• Net income for Q2 2024 was $4.2 million, but a six-month net loss of $17.0 million reflects ongoing investment.

• Operating expenses rose due to higher ground lease costs, increased headcount, and non-cash stock-based compensation.

• Positive cash flow from operations was achieved, with Sky Harbour Capital reporting $1.1M positive operating cash flow in Q2 2024.

• Cash and equivalents plus investments totaled $149M as of June 30, 2024.

Outlook and guidance

• Guidance reaffirmed for positive consolidated operating cash flow by fall 2025, with scale driven by new campus openings.

• Raised 2025 guidance to 22 airports, with eight new ground leases expected by year-end 2025.

• Management expects continued investment in construction and development, with ongoing operating losses in the near term.

• Construction cost estimates for key projects increased by $26–$28 million due to required retrofits and design enhancements.