Sky Harbour Capital’s Obligated Group – the ring-fenced bond entity covering its first five operational campuses – has published its Q4 2025 financials (issued 3 March 2026). The update confirms that lease-up velocity accelerated sharply in the final quarter, cash generation roughly matched the preceding nine months combined, and the forward coverage ratio on the Group’s debt has risen materially.
Campuses that were in construction at Q3 (DVT and ADS) have now entered operations and have leased up with striking speed.Phoenix (DVT)went from 25% to 73% leased in a single quarter, and Dallas-Addison (ADS), which moved from 55% to 87%. Both campuses commenced operations in 2025. Total contracted square footage across the Obligated Group rose from 473.8K to 605.5K sq ft, a 28% increase in 90 days. OPF Phase II and ADS Phase II are now in construction, extending the portfolio’s forward pipeline. The December report also reflects an updated leasable SF figure for APA Phase I (130.7K vs 132.0K previously), consistent with revised site plans incorporating larger hangar formats.
Sky Harbour Cash flows shows a clear improvement
The cash flow dynamics in Q4 represent a qualitative shift. For the first nine months of 2025, the Obligated Group generated $7.5M in operating cash flow. In Q4 alone, the same campuses generated approximately $8.2M, bringing the full-year total to $15.7M. A meaningful portion of the Q4 uplift reflects a $5.9M upfront cash payment on a new long-term lease at OPF. This is interesting as wealthy individuals are kind to pay upfront a significant amount of its reen to secure the place.
That said, revenue remained below budget — full-year rental revenue of $12.9M came in 17.8% below the $15.7M plan, principally because DVT and ADS ramped later than originally modelled. Fuel revenue, by contrast, exceeded budget by 28% for the year. The trailing Debt Service Coverage Ratio improved from 1.38x (Q3) to 1.49x, and the forward projection for 2026 has been revised up sharply: management now projects a 2026 DSCR of 1.86x, against a 1.28x projection published just three months ago. The key driver is the step-up in projected net income from $1.3M to $5.1M, reflecting the full annualised contribution of the newly leased campuses.
One element of the cash flow trajectory that is easy to overlook: while hangars remain vacant, Sky Harbour bears certain operating costs – insurance, property taxes, and utilities – that transfer to tenants once a lease is signed. With approximately 375K sq ft still in lease-up across the portfolio (primarily at DVT, APA, and the two campuses now in construction), a meaningful portion of the current cost base is temporary in nature. We estimate this at roughly $2.2–2.5M per annum at the current occupancy level. As these hangars lease up — at the pace suggested by Q4 — that cost base shrinks and drops directly to the bottom line, with no additional capital deployed. It is a natural operating leverage effect built into the lease-up curve, and one that should become increasingly visible in the numbers through 2026.