If They Build It, Earnings Will Come. It Just Takes Time.

Research evidence excerpt

If They Build It, Earnings Will Come. It Just Takes Time.

June 17, 2026 Sky Harbour GroupREAL (SKYH, Buy, $13 PT)

Thomas Catherwood

If They Build It, Earnings Will Come. It Just Takes Time. (212) 738-6140 tcatherwood@btig.comESTATE Michael Tompkins WHAT YOU SHOULD KNOW: We are updating our estimates following SKYH's 1Q26 (212) 527-3566 mtompkins@btig.com

earnings release on May 14th. At the time, a more measured pace of earnings growth Company Data

- up 4.8% sequentially vs. our estimate of 30.9% - caught the market by surprise and

shares traded off (8.4%). A strategic shift to lease new campuses at short-term "teaser" Closing Price $9.40EQUITY Price Target $13.00 rates was a drag on earnings and pushes stabilization timelines from 12-18 months to

~24 months. That said, our investment thesis remains intact as we ultimately expect Market Cap (M) $719.36

SKYH's campuses to deliver double digit yields on cost, a 500+ bps spread to the Shares Out (M) 76.53

company's cost of capital. As such, we reiterate our Buy rating and $13 PT. Avg Daily Vol-3 Months (M) 0.16

■ 1Q26 Earnings Review (the numbers). SKYH reported 1Q adjusted EBITDA of Dividend / Yield $0.00 / 0.0%RESEARCH ($1.5M), ($1.2M) below our estimate of ($0.3M) (see Exhibit 4). Variances to our Revisions

model included ($1.6M) lower than anticipated rental revenue which was partially Previous Current

offset by a $0.4M combined benefit from higher fuel revenue and lower than

anticipated cash G&A expense. On the capital allocation front, SKYH completed Rating Buy Buy

$30.5M of construction spending, which was approximately in line with our Price Target $13.00 $13.00

estimate and ~63% above the T4Q average. FY26E REV 47.08 41.10

FY27E REV 72.79 59.59 ■ Campus Lease-Up Timelines and Opening Costs. With 1Q26 earnings,