Sky Harbour Group (SKYH, Financial) announced its first-quarter revenue of $5.59 million, which fell short of the expected $5.69 million. The firm is progressing into a new phase by enhancing its presence among top-tier business aviation clients nationwide. The primary focus during this period was on expanding construction efforts.
To address the challenges of scaling, Sky Harbour introduced new leadership and expanded its workforce, particularly in pre-construction and general contracting areas, aiming to achieve greater economies of scale. As they continue to scale their leasing and airfield operations, the company remains dedicated to maintaining the high standards of its Sky Harbour Home Basing services. Their strategy involves solidifying its pioneering position in aviation infrastructure over the long term.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Sky Harbour Group Corp (SKYH, Financial) is $16.80 with a high estimate of $25.00 and a low estimate of $13.50. The average target implies an upside of 40.70% from the current price of $11.94. More detailed estimate data can be found on the Sky Harbour Group Corp (SKYH) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Sky Harbour Group Corp's (SKYH, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Sky Harbour Group Corp (SKYH, Financial) in one year is $19.74, suggesting a upside of 65.33% from the current price of $11.94. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Sky Harbour Group Corp (SKYH) Summary page.
SKYH Key Business Developments
Release Date: March 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Sky Harbour Group Corp (SKYH, Financial) reported a 13% sequential increase in revenues over Q3, with full-year revenues doubling from 2023.
- The company has achieved positive cash flow from operations at the project level, with expectations for this trend to accelerate as new campuses ramp up.
- Sky Harbour Group Corp (SKYH) has strong liquidity with about $127 million in cash and US Treasury bills.
- The company has successfully raised approximately $75 million from a group of existing and new qualified investors.
- Sky Harbour Group Corp (SKYH) is experiencing an exponential growth in site acquisition, with plans to significantly exceed projections for campus development.
Negative Points
- Operating expenses increased due to hiring for new campuses and non-cash accruals for ground lease payments.
- Ground lease expenses have risen significantly, particularly at San Jose, impacting operating expenses.
- The company is not yet at cash flow break-even on a consolidated basis, though it expects to reach this by Q4 of the current year.
- Sky Harbour Group Corp (SKYH) faces challenges with macroeconomic factors pushing construction costs up.
- The company has not yet fully realized the potential of additional revenue streams beyond rent and fuel, which are currently not a priority.
