Sky Harbour Group Corp. (NYSE: SKYH) reported continued momentum in the third quarter of 2025, as the company scaled its network of private aviation hangar campuses and moved closer to sustained cash flow generation. The company now conducts resident flight operations at nine locations, including fully operational sites at Sugar Land (SGR), Nashville (BNA), Miami Opa-Locka (OPF), San Jose (SJC), Camarillo (CMA), Phoenix Deer Valley (DVT), Dallas Addison (ADS), Seattle Boeing Field (BFI), and Denver Centennial (APA). Additional Tier 1 locations such as Bradley (BDL), Dulles (IAD), Orlando Executive (ORL), Salt Lake City (SLC), Portland-Hillsboro (HIO), and Long Beach (LGB) are advancing through development and pre-leasing. Constructed assets and construction in progress increased to more than $308.0 million at quarter-end.
Consolidated revenue for the quarter reached approximately $7.3 million, a 78% increase year-over-year and an 11% sequential rise, driven by higher occupancy and fuel sales as additional campuses ramped up. Rental revenue grew to roughly $5.7 million, while fuel revenue increased to about $1.6 million. Stabilized campuses generally remained at or near full occupancy. ADS and DVT passed the 50% leased threshold, and APA began contributing with initial leases. Pre-leasing activity at future developments, notably BDL and IAD, continued to secure early commitments without material pricing concessions, reinforcing demand and pricing power.
Construction and development activity remained robust. ADS received final certificates of occupancy and became fully operational, while APA commenced resident flight operations as it neared completion, marking a shift from construction to income generation at both campuses. OPF Phase 2 remains on schedule for completion in the second quarter of 2026. Bradley broke ground with targeted delivery in the fourth quarter of 2026, and site work advanced at Salt Lake City and other Tier 1 locations. Sky Harbour continues to leverage its vertically integrated platform, including Ascend Aviation Services and Stratus Building Systems, to enhance quality control, manage costs, and improve delivery timelines.
Gross margin improved to 13.5% in 3Q25, compared to 10.2% in 3Q24 and (2.0)% in 2Q25. Operating loss widened to $(7.7) million from $(4.8) million in the prior-year quarter. Net income attributable to common shareholders was $(1.9) million, or $(0.06) per diluted share. Adjusted EBITDA remained negative but improved on a run-rate basis. Management strengthened the capital stack by signing a joint venture letter of intent on an SH34 hangar at OPF Phase 2, providing flexible, lower-cost funding to support the next wave of growth.
Sky Harbour ended the quarter with approximately $48.0 million in consolidated cash, restricted cash, and U.S. Treasuries. A new $200 million tax-exempt warehouse facility, expandable to $300 million, offers draw-as-needed flexibility at an attractive fixed rate with no prepayment penalty and was undrawn at quarter-end, preserving capacity to fund 5-6 upcoming developments across Tier 1 airports. Stonegate Capital Partners updated its coverage with a discounted cash flow analysis producing a valuation range of $12.81 to $19.93, with a midpoint of $15.74, based on discount rates between 8.75% and 9.25% and assuming debt at an estimated blended interest rate of 4.25%.
