Sky Harbour Group Corporation (NYSE: SKYH) has announced a fiscal year 2024 marked by significant financial growth, with consolidated revenues reaching $14.8 million, a 95% increase from the previous year. This remarkable achievement underscores the company's resilience and strategic acumen in the aviation infrastructure sector, even amid challenging economic conditions.
The company's growth was fueled by strategic lease initiations, campus optimization, and the acquisition of new facilities, including the Camarillo campus. A notable expansion was the newly executed lease at Seattle's Boeing Field, adding approximately 90,000 rentable square feet to Sky Harbour's portfolio. Currently, the company boasts about 580,000 leasable square feet, with over 2.1 million square feet under construction or development. These projects are expected to generate an additional annual revenue potential of approximately $37.6 million upon completion.
Financially, Sky Harbour demonstrated steady improvement, with gross margins increasing to 14.5% in the fourth quarter of 2024, up from 10.2% sequentially. Despite a slight decrease in operating income to $(5.4) million, primarily due to increased operational expenses, the company remains optimistic about its future profitability. Sky Harbour's robust balance sheet, with total assets of $556.6 million and liquidity totaling approximately $127.0 million at year-end, further solidifies its financial standing. The successful completion of its second PIPE equity placement in December, raising $75.0 million from new and existing investors, highlights the confidence in the company's growth trajectory.
Looking ahead, Sky Harbour's strategic positioning and financial management could potentially secure an investment-grade bond rating in fiscal year 2025. According to Stonegate Capital Partners, the company's stock valuation could range between $15.36 and $23.80, with a midpoint of $18.83. With ongoing construction projects at key locations such as Phoenix Deer Valley Airport, Addison Dallas Airport, and an upcoming facility in Denver Centennial Airport, Sky Harbour is poised for continued expansion and strong growth in the business aviation sector.
