Sky Harbour Group Corp. 10-Q Summary
Business Context and Reporting Period
Company: Sky Harbour Group Corp. (SKYH)
Reporting Period: Quarter and six months ended June 30, 2026
Business Model: Aviation infrastructure developer constructing and leasing general aviation hangars ("Home Base Operator" campuses) across the U.S. The company operates under an Up-C structure, with operating assets held by Sky Harbour LLC.
Key Financial Metrics (Six Months Ended June 30, 2026)
| Metric | Value (in thousands) |
|---|---|
| Total Revenue | $18,580 |
| Operating Loss | $(13,740) |
| Net Loss | $(13,341) |
| Net Loss Attributable to Shareholders | $(6,816) |
| Adjusted EBITDA (Non-GAAP) | $(2,438) |
| Cash and Restricted Cash | $164,026 |
| Total Debt (Bonds & Loans) | $417,255 (Principal) |
| Cost of Construction (WIP) | $84,163 |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 52.5% year-over-year (from $12.18M to $18.58M). Rental revenue rose 39% and fuel revenue rose 104%, driven by new campus openings (OPF Phase II, ADS, APA) and higher occupancy.
- Expense Increases: Total expenses rose 21.8% to $32.32M. Ground lease expenses increased 20.7% due to new leases (LGB, FTW, SWF, HIO). Depreciation and amortization increased 58.5% as new assets came online.
- Net Income Volatility: The company reported a net loss of $13.3M compared to a net income of $5.2M in the prior year. This shift is primarily due to a significant reduction in the unrealized gain on warrant liabilities (from $19.3M gain in 2025 to $3.0M gain in 2026) and higher interest expenses from increased debt.
- Balance Sheet Expansion: Total assets grew from $593.2M to $822.9M, driven by a $23.4M increase in restricted cash and a $42.3M increase in restricted investments, alongside a $23.3M increase in cost of construction.
Guidance, Outlook, and Risks
- Capital Raising: On August 10, 2026, the company entered into an agreement for a registered direct offering of 4,000,000 shares at $10.00/share, expecting ~$40M in gross proceeds for general corporate purposes.
- Debt Financing: In February 2026, the company issued $150M in Series 2026 Bonds (6.00% interest, mandatory tender in 2031). The Term Loan Facility ($200M capacity) had ~$130.2M availability as of June 30, 2026.
- Construction Pipeline: The company has a pipeline of projects in development with estimated total costs between $648.2M and $719.8M. Projects include phases at ADS, BDL, ORL, POU, SLC, and others.
- Risks:
- Interest Rates: Elevated rates increase borrowing costs; the company is subject to credit spreads as a non-rated issuer.
- Construction Costs: Inflationary pressures on steel, concrete, and labor could impact margins and timelines.
- Liquidity: The company expects to continue generating operating losses and relies on debt and equity markets to fund construction.
Investor Verification Checklist
- Warrant Liability Volatility: Verify the impact of warrant fair value changes on net income, as this non-cash item significantly distorts GAAP profitability.
- Debt Service Coverage: Confirm compliance with debt covenants (1.25x DSCR) given the recent increase in interest-bearing debt ($150M new bonds + Term Loan draws).
- Construction Spend vs. Revenue: Monitor the conversion of "Cost of Construction" ($84.2M) into revenue-generating assets to ensure capital efficiency.
- Restricted Cash Utilization: Review the $145M in restricted cash to understand liquidity constraints and availability for operational needs.
- Occupancy Rates: Validate the reported economic occupancy rates (85.8% weighted average) and the ability to lease newly completed phases (e.g., OPF Phase II).