Sky Harbour Group Expands Aviation Infrastructure Portfolio, Sees Significant Revenue Growth
TL;DR
Sky Harbour Group Corp. (NYSE: SKYH) strengthened its competitive position with the announcement of the SH-37 hangar, catering to modern business jets.
Sky Harbour expanded its leased footprint and construction projects, projecting additional revenue from over 2.1 million sq ft under development.
Sky Harbour's growth and resilience in FY24 contribute to a better world by enhancing aviation infrastructure and creating job opportunities.
Stonegate Capital Partners updates coverage on Sky Harbour, showcasing its robust growth, occupancy rates, and new strategic lease at Seattle's Boeing Field.
Sky Harbour Group Corporation demonstrated significant growth and strategic expansion in fiscal year 2024, reporting consolidated revenues of $14.8 million, a 95% increase from the previous year. The company's performance reflects successful navigation through challenging economic conditions, including inflation and high interest rates.
The company's strategic focus on aviation infrastructure has yielded impressive results. Sky Harbour now operates campuses at multiple strategic locations, including a newly executed lease at Seattle's Boeing Field, adding approximately 90,000 rentable square feet. The portfolio's total leasable space has reached approximately 580,000 square feet, with over 2.1 million square feet currently under construction or development.
Financial metrics show promising trends. Gross margins improved to 14.5% in the fourth quarter, up from 10.2% sequentially. While operating income decreased slightly to $5.4 million, the company maintained a strong balance sheet with total assets of $556.6 million and liquidity of approximately $127.0 million at year-end.
In December, Sky Harbour completed a private investment in public equity (PIPE) placement, raising $75.0 million from new and existing investors. This financial move strengthens the company's position as it pursues an investment-grade rating for its bonds, potentially achievable in fiscal year 2025.
The company's growth strategy includes ongoing construction projects at key locations such as Phoenix Deer Valley Airport, Addison Dallas Airport, and an upcoming facility at Denver Centennial Airport. These developments are projected to generate additional annual revenue potential of approximately $37.6 million upon completion.
Analysts from Stonegate Capital Partners value the company between $15.36 and $23.80 per share, with a midpoint of $18.83, reflecting confidence in Sky Harbour's strategic direction and market potential.
Curated from Reportable