Loss-Making Sky Harbour Group Corporation (NYSE:SKYH) Expected To Breakeven In The Medium-Term

Sky Harbour Group Corporation (NYSE:SKYH) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Sky Harbour Group Corporation operates as an aviation infrastructure development company in the United States. With the latest financial year loss of US$16m and a trailing-twelve-month loss of US$42m, the US$822m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Sky Harbour Group's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Sky Harbour Group

Sky Harbour Group is bordering on breakeven, according to the 4 American Infrastructure analysts. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$6.1m in 2027. The company is therefore projected to breakeven around 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 58% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Sky Harbour Group's upcoming projects, but, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one issue worth mentioning. Sky Harbour Group currently has a debt-to-equity ratio of 171%. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Sky Harbour Group, so if you are interested in understanding the company at a deeper level, take a look at Sky Harbour Group's company page on Simply Wall St. We've also put together a list of important factors you should further examine:

1. Valuation: What is Sky Harbour Group worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Sky Harbour Group is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Sky Harbour Group’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.