Summary of Sky Harbour Group Corporation Q2 2026 Earnings Call

1Key Financial Results and Metrics

Assets Under Construction: Increased to over $393 million, a $65 million rise year-to-date, marking the highest in the company's history.

Revenue Growth: Q2 revenues rose 50% year-over-year and 13% sequentially, driven by new campus openings and increased occupancy/rental rates.

Operating Expenses: Increased due to new campus openings, particularly from headcount increases and non-cash expense accruals related to new ground leases.

Cash Flow: Positive cash flow from operating activities reached approximately $0.5 million, marking the first positive cash flow in the company's history.

Adjusted EBITDA: Improved to approximately negative $0.9 million in Q2, with expectations for further improvement as new campuses stabilize.

2Strategic Updates and Business Highlights

Leasing Strategy: Focus on short-term leases at introductory rates to achieve full occupancy quickly, with plans to transition to longer-term leases at higher rates.

Site Acquisition: Continued emphasis on Tier 1 airports, with a strategy to secure larger hangar spaces to optimize operating margins.

Development Progress: On track with multiple campuses under construction, including Opa Locka Phase 2 and Addison Phase 2, expected to enhance revenue and profit margins.

Innovative Programs: Introduction of "Sky Key," a program aimed at enhancing customer experience across multiple campuses, which is anticipated to drive additional revenue.

3Forward Guidance and Outlook

Revenue Guidance: Reaffirmed annualized run rate revenue expectation of $42 million to $46 million by year-end, up from $39.4 million in the previous quarter.

Adjusted EBITDA Guidance: Expected to reach an annualized run rate of $4 million to $6 million by year-end, showing significant improvement from current levels.

Future Developments: Anticipation of further revenue increases from new leasing activities and the opening of additional campuses in 2027.

4Bad News, Challenges, or Points of Concern

Slow Leasing in Denver: Economic occupancy remains low, with slower-than-expected leasing at the Denver Centennial campus, which was described as disappointing.

Increased Operating Expenses: Rising costs associated with new campus openings, particularly non-cash expenses related to ground leases, could pressure margins.

Market Risks: Concerns about construction inflation and competition for airport land may impact future profitability and site acquisition strategies.

5Notable Q&A Insights

Pre-Leasing Strategy: The company plans to standardize pre-leasing across new constructions, aiming for 50-66% occupancy before opening.

Ground Lease Metrics: Shift from counting the number of ground leases to focusing on square footage and potential NOI, indicating a strategic pivot towards maximizing revenue generation.

Competitive Landscape: The company remains aggressive in site acquisitions, emphasizing patience and persistence in securing Tier 1 airport locations, despite tightening competition.

Investor Relations: Discussion around a recent equity placement and the sale of shares by Boston Omaha, indicating ongoing investor interest and confidence in the company's long-term strategy. This summary encapsulates the key takeaways from Sky Harbour's Q2 2026 earnings call, highlighting both the positive developments and the challenges faced by the company.