Sky Harbour Group — Q3 2026 Earnings Summary

Financial Performance:

• Consolidated Q3 2026 revenues increased approximately 45% year-over-year compared to Q3 2025 and 7% quarter-over-quarter compared to Q2 2026.
• Sky Harbour Capital LLC (Obligated Group) revenues in Q3 2026 increased 87% year-over-year compared to Q3 2025 and 13% quarter-over-quarter compared to Q2 2026.
• Constructed assets and construction in progress reached $439 million at quarter-end, representing a year-to-date increase of over $111 million.
• Net cash used by operating activities for the consolidated entity was approximately $0.7 million in Q3 2026, compared to $0.9 million used in Q3 2025 and $0.5 million provided in Q2 2026; the Q2-to-Q3 decrease was largely driven by a $1.0 million payment of accrued interest on Yorkville Loans.
• Net cash provided by operating activities for the Obligated Group was approximately $3.2 million in Q3 2026, compared to $2.9 million in Q2 2026.
• Consolidated liquidity and capital resources included $199.4 million in cash and US Treasuries, with access to an additional $129.2 million under the committed JP Morgan drawdown construction bank facility.
• The Obligated Group held $25.2 million in cash and US Treasuries as of September 30, 2026.
• Debt service coverage tests calculated per the Series 2021 bond indenture as of September 30, 2026, exceeded all applicable covenant ratios.

Guidance and Future Outlook:

• Year-end 2026 revenue guidance was revised upward to a range of $44–48 million, from a prior range of $42–46 million, driven by increased occupancy and fueling at existing operating campuses.
• Year-end 2026 Adjusted EBITDA guidance was revised downward to a range of $0–4 million, from a prior range of $4–6 million, due to operating and one-time costs associated with the expected early December opening of the BDL campus and the delay in ADS Phase 2 opening to Q1 2027.
• Management expects operating margins for new campuses (including BDL) and existing operating campuses to reach target levels over time as they lease up and stabilize.

Business Segments and Product Lines:

• Leasing: Stabilized campuses saw an average revenue escalation of 20% upon re-lease for the trailing 12 months as of November 1, 2026, excluding typical CPI escalations with a 4% floor.
• Occupancy: Miami–Opa Locka (OPF) combined occupancy reached 92% with all 2026 leases signed at Tier-1 rates; ADS Phase 1, Phoenix Deer Valley (DVT) Phase 1, and Denver Centennial (APA) Phase 1 achieved 101%, 77%, and 57% economic occupancy, respectively.
• Pre-leasing: San Jose Mineta (SJC) Phase 1 reached 132% economic occupancy, while SJC Phase 2 is 100% pre-leased.
• Construction (Obligated Group): ADS Phase 2 is expected to open in February 2027, marking the completion of all Obligated Group projects; $15.8 million in equity has been contributed to date for ADS Phase 2, with $13 million in remaining capital expenditures expected to be financed by Series 2026 Bonds.
• Construction (Portfolio 2): Bradley International (BDL) is on schedule for completion by December 4, 2026; Salt Lake City (SLC) is expected to complete around March 2027; Hudson Valley (POU) and Orlando Executive (ORL) are expected to complete in Q3 2027.
• Development (Portfolio 2): Construction is scheduled to begin in late Q4 2026 for Washington Dulles (IAD), Trenton-Mercer (TTN), and Chicago Executive (PWK).
• Third-Party Services: Subsidiaries Stratus Building Systems and Ascend Aviation Services secured contracts with a major FBO for the turnkey delivery of two hangar campuses totaling over 128,640 square feet, with contract values exceeding $38 million.
• Operations: The company operates 1.04 million square feet of hangar and associated office/support space, with approximately 2 million square feet of aviation ramp and vehicle parking.
• Efficiency: A campus-level Opex efficiency program has been implemented with initial cost savings realized; a network-wide fuel supply RFP is expected to improve fuel margins; a multi-year equipment RFP reduced future GSE purchase costs by over 10%.

Market and Competitive Landscape:

• The HBO service model, featuring proprietary training equipment and unique standard operating procedures for line crew and General Managers, is identified as a major differentiator.
• Revenue per square foot continues to grow at stabilized campuses as original hangar leases turn over.

Risks and Challenges:

• Adjusted EBITDA guidance for 2026 was reduced due to operating and one-time costs associated with new campus openings and delays in project completion.
• Forward-looking statements regarding financial condition, results of operations, and construction timelines are subject to uncertainties and assumptions that may cause actual results to differ materially.

Management Commentary and Tone:

• CEO Tal Keinan stated that the growing footprint at tier 1 airports represents early results of a multi-year effort, launching a standardized process of development, leasing, and operations.
• Management expressed confidence that the standardized process will result in an increasingly predictable schedule of revenue and NOI step-ups.

Other Key Points:

• New Ground Leases: The Los Angeles City Council approved two new ground leases at Van Nuys Airport totaling over 25 acres, expected to yield approximately 300,000 rentable square feet; formal execution is expected in the coming weeks.
• New Ground Leases: The Metropolitan Washington Airport Authority approved an option for a third ground lease at Dulles International Airport, providing 15 acres for 171,520 rentable square feet.
• Financing: Proceeds from the Series 2026 Bonds are available for the completion of ADS Phase 2 construction.
• Operational Milestone: The BDL Campus is on track to transition from finished construction to a resident-ready operating campus in less than 30 days.