SKYH

Sky Harbour is an early-stage aviation-infrastructure developer building HBO hangar campuses, and the top line is genuinely inflecting — FY2025 revenue of $27.5M is up 86.6%, capping a run from just $1.58M in FY2021. The real-estate model (long-term ground leases at LGB, FTW; long-dated rental agreements) gives forward revenue visibility, and the demand backdrop the MD&A lays out is real: a 73% rise in U.S. business-aircraft square footage since 2010, a $57B order backlog, and hangar waitlists spanning years. This is a credible thesis for what the business could become.

But the reported profitability is a mirage, and that is the crux of the call. Operating income was -$28.0M (a -101.8% operating margin) and operating cash flow was -$2.34M — the company loses money running the business. The headline $18.8M net income (68.3% net margin) therefore does not come from operations; with a deeply negative operating line, the positive bottom line is driven by non-operating/fair-value items, not cash earnings. Paying a 110.8x P/E on $0.09 of non-operating EPS, or 12.2x sales, prices this as if the operating losses were already behind it — they are not.