Sky Harbour Group (SKYH) Q4 2024 earnings summary

Executive summary

• Assets under construction and completed construction surpassed $250 million at year-end, driven by activity at Phoenix, Dallas, and Denver, with accelerated construction and site acquisitions and three new campus openings expected in 2025.

• Consolidated revenues nearly doubled year-over-year, with Q4 revenues up 13% sequentially, aided by new leases and acquisitions including Camarillo.

• Operating expenses rose due to hiring for new campuses, non-cash accruals for ground lease payments, and SG&A increases from expansion.

• Initial leases signed at DVT and ADS, with preleasing underway for OPF2 and APA2; Camarillo integration and operational ramp-up at three new fields.

• The company expects to reach consolidated cash flow break-even and adjusted EBITDA by Q4 2024 or year-end 2025 as new campuses scale.

Financial highlights

• 2024 consolidated revenues increased 95% year-over-year, with Q4 revenues up 13% sequentially; constructed or in-construction assets exceeded $250 million.

• Operating expenses and SG&A increased, mainly from staff onboarding, higher ground lease accruals, and new site launches.

• Net loss for Q4 2024 was $(15.9) million; FY 2024 net loss $(53.7) million; Adjusted EBITDA for Q4 2024 was $(10.6) million.

• Strong liquidity with $127 million in cash and US Treasuries at year-end.

• Obligated Group revenues rose 51% year-over-year; net cash provided by operating activities reached $6.5 million.

Outlook and guidance

• Anticipates a step-function increase in revenues in Q2–Q4 2024 and three new campus openings in 2025 to drive further growth.

• Expects to reach cash flow break-even and adjusted EBITDA on a consolidated basis by Q4 2024 or year-end 2025.

• Guidance for 23 campuses confirmed, with six additional new hangar ground leases expected by end of 2025.

• Scaling development program with 14 additional project phases in pipeline.

• Upcoming $150 million debt issuance to fund further expansion.