SkyWest (SKYW) Q4 2025 earnings summary

Executive summary

• Q4 2025 net income was $91 million ($2.21 per diluted share), impacted by FAA-mandated flight cancellations due to a government shutdown, reducing pre-tax income by $7 million ($0.13 per share); full-year net income rose 33% to $428 million ($10.35 per share), driven by 15% block hour growth and strong operating leverage.

• Achieved 15% growth in production and a 31% increase in pre-tax income for 2025 compared to 2024.

• Secured multiyear contract extensions for 40 E175s with United and 13 E175s with Delta, ensuring no major E175 contract expirations until late 2028.

• Named a Fortune World's Most Admired Company for 2026, ranking in the top 10 and as the only regional airline on the list.

• Over 250 days of 100% controllable completion in 2025, despite challenges from a government shutdown and mandatory flight reductions in Q4.

Financial highlights

• Q4 2025 revenue was $1 billion, up 8% year-over-year from $944 million in Q4 2024; full year 2025 operating revenues were $4.06 billion, up from $3.53 billion in 2024.

• Q4 contract revenue was $803 million, up from $786 million in Q4 2024; prorate and charter revenue was $167 million, up from $126 million year-over-year.

• Leasing and other revenue rose to $54 million in Q4, driven by third-party maintenance services.

• 2025 pre-tax income was $566 million, up 31% on a 15% increase in block hours; EBITDA reached $982 million, up over $100 million from 2024.

• Free cash flow for 2025 exceeded $400 million.

• Debt reduced by $492 million in 2025, ending Q4 at $2.4 billion, down from $2.7 billion at 2024 year-end.

• Cash and marketable securities at year-end 2025: $707 million, down from $802 million at year-end 2024.

• Share repurchases totaled $85 million in 2025, buying back nearly 850,000 shares; $213 million remaining under current authorization.

• Q4 2025 operating income was $134.2 million, down from $144.1 million in Q4 2024; full year 2025 operating income was $617.8 million, up from $494.7 million.

Outlook and guidance

• 2026 block hours expected to grow mid-single digits over 2025, with EPS anticipated in the mid-$11 range, up modestly from prior guidance.

• CapEx for 2026 projected at $600–$625 million, roughly flat with 2025, with 9 new E175 deliveries expected.

• By end of 2028, nearly 300 E175 aircraft expected in fleet; 44 additional E175s secured for delivery from 2028–2032, with purchase rights for 50 more.

• Q1 2026 EPS expected to be flat to down from Q4 2025 due to seasonality, with Q2 and Q3 as the strongest quarters.

• Maintenance expense in 2026 expected to remain consistent with 2025 as more aircraft return to service.

• Deferred revenue recognition expected at $20–$25 million per quarter in 2026, with $265 million remaining to be recognized.