With the business potentially at an important milestone, we thought we'd take a closer look at Sky Harbour Group Corporation's (NYSE:SKYH) future prospects. 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$847m 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.

See our latest analysis for Sky Harbour Group

Consensus from 3 of the American Infrastructure analysts is that Sky Harbour Group is on the verge of breakeven. They expect the company to post a final loss in 2026, before turning a profit 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 57% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Sky Harbour Group given that this is a high-level summary, though, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Sky Harbour Group is its debt-to-equity ratio of 171%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. 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 compiled a list of key factors you should look at:

1. Historical Track Record: What has Sky Harbour Group's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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.