Target Hospitality Announces 2025 Results Highlighting Significant Advancement of Strategic Growth Initiatives as Expanding Customer Demand Accelerates Momentum
Rhea-AI Summary
Target Hospitality (NASDAQ: TH) reported full-year 2025 results and announced multiple multi-year workforce contracts supporting data center and power projects. Revenue was $320.6M with a net loss of $37.1M and Adjusted EBITDA $53.2M. The company secured >$740M in contracts since Feb 2025, including new $129M and $23M West Texas and Pecos power community awards, reactivating >1,800 beds and expanding its WHS pipeline above 20,000 beds. Guidance for 2026 calls for revenue of $320–330M, Adjusted EBITDA of $60–70M, and capex of $65–75M.
Positive
- Secured over $740M in multi-year contracts since February 2025
- Reactivated more than 1,800 beds from recent West Texas and Pecos awards
- Zero net debt with approximately $183M total available liquidity as of 12/31/2025
- Full-year 2026 guidance targets Adjusted EBITDA $60–70M, implying margin recovery
Negative
- Revenue declined 17% YoY to $320.6M from $386.3M in 2024
- Net loss of $37.1M in 2025 versus net income $71.4M in 2024
- Adjusted EBITDA dropped to $53.2M from $196.7M in 2024
- Utilization fell to 51% for the year, down from 83% in 2024
Key Figures
Market Reality Check
Peers on Argus
TH is up about 1.0% while peers show mixed moves (e.g., TRNS +1.78%, BV -2.10%, BKSY -2.83%). With no peers in momentum scanners and no same-day peer headlines, the reaction appears company-specific to TH’s earnings and contract updates.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 04 | Earnings call schedule | Neutral | +5.6% | Set date and time for Q4 and full-year 2025 results call. |
| Feb 24 | Data center expansion | Positive | +2.0% | Announced second 400-bed expansion with ~$49M committed revenue. |
| Jan 13 | Executive appointment | Neutral | -1.2% | Named new Chief Accounting Officer overseeing financial reporting. |
| Dec 03 | Power contract award | Positive | +0.1% | Won ~$35M Northern Nevada Power Community contract over 25 months. |
| Nov 17 | Data center expansion | Positive | +1.4% | Expanded Data Center Community, lifting minimum revenue to about $83M. |
Recent news tied to WHS/data center contracts has generally seen modest positive price reactions, while management or governance updates have shown more mixed responses.
Over the last several months, Target Hospitality has steadily communicated contract-driven growth in its Workforce Hospitality Solutions segment. Announcements on the Data Center Community and Power Community contracts in Nov 2025 and Dec 2025 carried multi‑year, high-value revenue commitments and were followed by small positive moves. A January 2026 management appointment produced a slight decline. February and early March updates on conference scheduling and further data center expansion again drew positive reactions, providing context for today’s larger earnings and contract update.
Market Pulse Summary
This announcement highlights Target Hospitality’s transition from a PCC-dependent model toward a diversified portfolio anchored by Workforce Hospitality Solutions, power, and AI-linked data center projects. Management reports over $740 million in multi-year awards since February 2025 and guides 2026 revenue to $320–$330 million with Adjusted EBITDA of $60–$70 million. Offsetting this, 2025 results show a $37.1 million net loss and materially lower EBITDA. Investors may track WHS ramp, margin recovery, contract execution, and capital spending against these targets.
Key Terms
adjusted EBITDA financial
discretionary cash flow financial
restricted stock units financial
performance stock units financial
volume-weighted average price financial
AI-generated analysis. Not financial advice.
Announces new
Announces new
Supporting over
Financial Highlights for the year ended December 31, 2025
- Revenue of
$320.6 million - Net loss of
( .$37.1) million - Basic and diluted loss per share of
$0.37 - Adjusted EBITDA(1) of
$53.2 million - Net Cash Provided by Operating Activities of
$74 million $66 million - Approximately
$183 million
Operational Achievements and Accelerating Momentum on Strategic Growth Initiatives
Including the West Texas Power Community and Pecos Power Community contracts, Target has secured over
- Today announced a multi-year lease and services agreement, awarded in March 2026, with a minimum contract value of
$129 million - Today announced a multi-year lease and service agreement, awarded in March 2026, with a minimum contract value of
$23 million Pecos, Texas ("Pecos Power Community"). - Expanded multi-year workforce hub contract, now expected to generate approximately
$175 million 25% increase from the original contract value, supporting a North American critical mineral supply chain ("Workforce Hub Contract" or "Workforce Hub"). - Secured 5-year
$246 million Dilley, Texas ("Dilley Contract"). - Awarded a multi-year
$35 million Northern Nevada (the "Power Community Contract"). - Expanded the multi-year data center contract supporting AI infrastructure development ("Data Center Community"), now expected to generate approximately
$134 million - Advancing discussions on multiple potential opportunities aligned with accelerating demand for AI-driven infrastructure and large-scale power generation development.
- Target Hyper/Scale, focused on highly customizable solutions for the rapidly expanding WHS segment, continues to resonate with prospective customers and supports an active growth pipeline exceeding 20,000 beds.
Executive Commentary
"During 2025 we executed on a clear mandate to advance our strategic agenda—broadening our contract portfolio and accelerating expansion into high-growth end markets. Through disciplined execution, we secured more than
"Our momentum reflects a historic investment cycle across
Financial Results
Full Year Summary Highlights
Refer to exhibits to this earnings release for definitions and reconciliation of Non-GAAP financial measures to GAAP financial measures
For the Years Ended | December 31, 2025 | December 31, 2024 | |||||
Revenue | $ | 320,635 | $ | 386,272 | |||
Net income (loss) | $ | (37,077) | $ | 71,407 | |||
Income (loss) per share – basic | $ | (0.37) | $ | 0.71 | |||
Income (loss) per share – diluted | $ | (0.37) | $ | 0.70 | |||
Adjusted EBITDA | $ | 53,166 | $ | 196,717 | |||
Average utilized beds | 8,466 | 13,362 | |||||
Utilization | 51 | % | 83 | % | |||
Revenue was
Net income (loss) was
Adjusted EBITDA(1) was
The year-over-year decreases were primarily driven by the termination of the Pecos Children's Center Contract ("PCC Contract") effective February 21, 2025. The impact from this termination was partially offset by strong performance from the Company's expanding WHS segment, supported by the Workforce Hub Contract award, as well as the Dilley Contract award in the government segment. Target anticipates meaningful margin improvement through 2026 as recently awarded WHS contracts continue to scale and following the completion of the Dilley Contract ramp-up phases in 2025.
Fourth Quarter Summary Highlights
For the Three Months Ended ($ in '000s, except per share amounts) - | December 31, 2025 | December 31, 2024 | |||||
Revenue | $ | 89,777 | $ | 83,688 | |||
Net income (loss) | $ | (14,943) | $ | 12,544 | |||
Income (loss) per share – basic | $ | (0.15) | $ | 0.13 | |||
Income (loss) per share – diluted | $ | (0.15) | $ | 0.12 | |||
Adjusted EBITDA(1) | $ | 6,544 | $ | 41,147 | |||
Average utilized beds | 8,394 | 11,911 | |||||
Utilization | 50 | % | 73 | % | |||
Revenue was
The increase in revenue was primarily driven by the Workforce Hub Contract and the Dilley Contract award, partially offset by the termination of the PCC Contract effective February 21, 2025.
Net income (loss) was
Adjusted EBITDA(1) was
The decreases in net income (loss) and Adjusted EBITDA primarily reflect higher operating expenses associated with construction services activity under the Workforce Hub Contract and the termination of the historically higher-margin PCC Contract. The Company anticipates meaningful margin improvement in 2026 as the Workforce Hub Contract transitions to higher-margin, service-focused revenue, recently awarded WHS segment contracts continue to scale, and following the completion of the Dilley Contract ramp-up phases in 2025.
Capital Management
The Company had approximately
As of December 31, 2025, the Company had approximately
Business Update and Full Year 2026 Outlook
In 2025, Target consistently advanced its strategic growth initiatives, reinforcing the importance of the Company's vertically integrated accommodations platform and its unique ability to provide critical hospitality solutions across a variety of end markets and geographies. This strong momentum has supported over
The continued growth of Target's WHS segment highlights the strength of the Company's integrated operating model and its ability to scale rapidly with accelerating customer demand. This scalability has supported a
These contracts are expected to benefit from enhanced margin contribution through 2026, as the Workforce Hub Contract transitions to more service-focused, higher-margin revenue and the Data Center Community Contract benefits from increasing scale and improved operational efficiencies.
West Texas Power Community and Pecos Power Community
Target's WHS segment continues to accelerate the Company's shift toward a higher‑growth, diversified portfolio serving critical minerals, AI‑driven data center development, and large‑scale power projects. The Hyper/Scale platform remains a key differentiator, supporting continued wins such as the newly awarded West Texas Power Community and Pecos Power Community contracts. Combined, these newly awarded contracts immediately reactivate more than 1,800 beds of the Company's existing
The West Texas Power Community leverages existing infrastructure, requiring only
The Pecos Power Community, located in
Collectively, these WHS contract additions meaningfully upgrade Target's contract portfolio, enhance long‑term revenue visibility, and position Target to benefit from the significant
Together, these elements have created the most active growth pipeline in Target's history. Rapidly expanding market demand is being driven by an unprecedented global capital investment cycle aimed at scaling large, increasingly remote data center and related infrastructure projects. These strong market fundamentals support Target's evaluation of opportunities exceeding 20,000 beds and underscore the essential role of the Company's workforce accommodations platform across multiple end markets and geographies.
Target has made significant advancements in its strategic growth initiatives, focused on enhancing revenue visibility, supporting consistent cash flows, and strengthening margin contribution. The Company is well-positioned to execute on its recent contract awards, driven by significant growth in its WHS segment, while simultaneously advancing its strategic objectives and capitalizing on a strong development pipeline. This foundation supports the Company's 2026 outlook of:
Full Year 2026 Financial Outlook:
- Total revenue between
$320 $330 million - Adjusted EBITDA(1) between
$60 $70 million - Total Capital Expenditures between
$65 $75 million
Total capital expenditures are focused on continued growth in the Company's WHS segment, including approximately
Segment Results – Fourth Quarter 2025
Hospitality & Facilities Services - South
Refer to exhibits to this earnings release for definitions and reconciliations of Non-GAAP financial measures to GAAP financial measures
For the Three Months Ended ($ in '000s, except ADR) - (unaudited) | December 31, 2025 | December 31, 2024 | |||||
Revenue | $ | 33,900 | $ | 36,733 | |||
Adjusted gross profit(1) | $ | 8,451 | $ | 12,581 | |||
Average daily rate (ADR) | $ | 71.07 | $ | 72.14 | |||
Average utilized beds | 5,125 | 5,474 | |||||
Utilization | 69 | % | 73 | % | |||
Revenue and adjusted gross profit for the three months ended December 31, 2025, were
Target continues to evaluate optimization opportunities across its network, including HFS – South communities, while actively identifying operational efficiencies and additional ways to enhance margin contribution in a competitive market.
Workforce Hospitality Solutions
Refer to exhibits to this earnings release for definitions and reconciliations of Non-GAAP financial measures to GAAP financial measures
For the Three Months Ended ($ in '000s) - (unaudited) | December 31, 2025 | December 31, 2024 | ||||
Revenue | $ | 39,709 | $ | — | ||
Adjusted gross profit(1) | $ | 9,099 | $ | — | ||
Revenue for the three months ended December 31, 2025, was
The increases were driven by construction services activity associated with the multi‑year Workforce Hub Contract, underscoring continued execution against key strategic growth initiatives. The Company expects margin expansion across this segment in 2026 as the Workforce Hub Contract shifts to higher‑margin, service‑focused revenue, with additional uplift anticipated from the Data Center Community, Power Community, and other recently announced WHS contracts as these assets scale and benefit from strong unit economics.
Target's growth pipeline is supported by sustained demand across its Workforce Hospitality Solutions segment, fueled by ongoing
Government
Refer to exhibits to this earnings release for definitions and reconciliations of Non-GAAP financial measures to GAAP financial measures
For the Three Months Ended ($ in '000s) - (unaudited) | December 31, 2025 | December 31, 2024 | |||||
Revenue | $ | 13,661 | $ | 43,702 | |||
Adjusted gross profit(1) | $ | 5,404 | $ | 37,712 | |||
Revenue for the three months ended December 31, 2025, was
The decreases were primarily driven by the termination of the PCC Contract, partially offset by the Dilley Contract award.
All Other
Refer to exhibits to this earnings release for definitions and reconciliations of Non-GAAP financial measures to GAAP financial measures
For the Three Months Ended ($ in '000s) - (unaudited) | December 31, 2025 | December 31, 2024 | |||||
Revenue | $ | 2,507 | $ | 3,253 | |||
Adjusted gross profit(1) | $ | (321) | $ | 259 | |||
This category of operating segments consists of hospitality services revenue not included in other segments. Revenue for the three months ended December 31, 2025, was
Conference Call
The Company has scheduled a conference call for March 11, 2026, at 8:00 a.m. Central Time (9:00 am Eastern Time) to discuss the fourth quarter and full year 2025 results.
The conference call will be available by live webcast through the Investors section of Target Hospitality's website at www.TargetHospitality.com or by connecting via phone through one of the following options:
Please utilize the Direct Phone Dial option to be immediately entered into the conference call once you are ready to connect.
Direct Phone Dial
(RapidConnect URL): https://emportal.ink/4teFk9a
Or the traditional, operator assisted dial-in below.
Domestic: 1-800-836-8184
Please register for the webcast or dial into the conference call approximately 15 minutes prior to the scheduled start time.
About Target Hospitality
Target Hospitality is one of
Cautionary Statement Regarding Forward Looking Statements
Certain statements made in this press release (including the financial outlook contained herein) are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside our control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include: operational, economic, including inflation, political and regulatory risks; our ability to effectively compete in the specialty rental accommodations and hospitality services industry, including growing the HFS – South, Workforce Hospitality Solutions and Government segments; our ability to execute, expand, and manage WHS projects supporting critical mineral development, power generation, and data center infrastructure projects; our ability to achieve margin improvement through the effective servicing of the new contracts we entered into during 2025 effective management, utilization and performance of our communities (including workforce hubs); natural disasters and other business disruptions including outbreaks of epidemic or pandemic disease; the duration of any future public health crisis, related economic repercussions and the resulting negative impact to global economic demand; the effect of changes in state building codes on marketing our buildings; changes in demand within a number of key industry end-markets and geographic regions, including natural resources, critical minerals, and data center/AI infrastructure; changes in customer capital spending, project schedules, or end-user demand that may result in delays, non-renewals, or cancellations of contracts, including the contract that is terminable for convenience in the Government segment; our reliance on third party manufacturers, suppliers and service providers; our ability to attract and retain key personnel and maintain workforce availability for specialized hospitality and construction operations; increases in raw material, food, labor or other operating costs; the effect of impairment charges on our operating results; our future operating results fluctuating, failing to match performance or to meet expectations; our exposure to various possible claims and the potential inadequacy of our insurance coverage; unanticipated changes in our tax obligations; our obligations under various laws and regulations, including those applicable to government contracts; the effect of litigation, judgments, orders, regulatory or customer bankruptcy proceedings on our business; our ability to successfully acquire and integrate new operations; global, national or local economic and political developments, including any changes in policy under the current or any future
(1) Non-GAAP Financial Measures
This press release contains historical non-GAAP financial measures including Adjusted gross profit, EBITDA, Adjusted EBITDA, and Discretionary cash flows which are measurements not calculated in accordance with US GAAP, in the discussion of our financial results because they are key metrics used by management to assess financial performance. Our business is capital-intensive, and these additional metrics allow management to further evaluate our operating performance. Reconciliations of these measures to the most directly comparable GAAP financial measures are contained herein. To the extent required, statements disclosing the definitions, utility and purposes of these measures are also set forth herein.
This press release also contains a forward-looking non-GAAP financial measure Adjusted EBITDA. Reconciliations of this forward-looking measure to its most directly comparable GAAP financial measures are unavailable to Target Hospitality without unreasonable effort. We cannot provide a reconciliation of forward-looking Adjusted EBITDA to GAAP financial measures because certain items required for such reconciliation are outside of our control and/or cannot be reasonably predicted, such as the provision for income taxes. Preparation of such reconciliation would require a forward-looking balance sheet, statement of income and statement of cash flow, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to us without unreasonable effort. Although we provide a minimum of Adjusted EBITDA that we believe will be achieved, we cannot accurately predict all the components of the Adjusted EBITDA calculation. Target Hospitality provides an Adjusted EBITDA outlook because we believe that this measure, when viewed with our results under GAAP, provides useful information for the reasons noted below.
Definitions:
Target Hospitality defines Adjusted gross profit, as Gross profit plus depreciation of specialty rental assets, loss on impairment, and certain severance costs, and excluding community pre-opening costs.
Target Hospitality defines EBITDA as net income (loss) before interest expense and loss on extinguishment of debt, income tax expense (benefit), depreciation of specialty rental assets, and other depreciation and amortization. Adjusted EBITDA reflects the following further adjustments to EBITDA to exclude certain non-cash items and the effect of what management considers transactions or events not related to its core business operations:
- Other expense (income), net: Other expense (income), net includes miscellaneous cash receipts, gains and losses on disposals of property, plant, and equipment and leased assets, community pre-opening costs, and other immaterial expenses and non-cash items.
- Transaction expenses: Target Hospitality incurred legal, advisory fees, and other costs associated with certain transactions during 2024, including costs related to the evaluation of the offer from Arrow Holdings S.a.r.l. ("Arrow"), an affiliate of TDR, to acquire all of the outstanding common stock of the Company not owned by Arrow (the "Arrow Proposal"). During 2025, such transaction costs primarily related to legal, advisory and audit-related fees associated with debt related transaction activity associated with the 2025 Senior Secured Notes that were fully redeemed on March 25, 2025, and, to a lesser extent, other business development project related transaction activity, including transaction bonus amounts related to certain new contract wins, and remaining costs associated with the Arrow Proposal.
- Stock-based compensation: Charges associated with stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of our compensation strategy.
- Change in fair value of warrant liabilities: Non-cash change in estimated fair value of warrant liabilities.
- Other adjustments: System implementation costs, including non-cash amortization of capitalized system implementation costs, claim settlements, business development, accounting standard implementation costs, and certain severance costs.
We define Discretionary cash flows as cash flows from operations less maintenance capital expenditures for specialty rental assets.
Utility and Purposes:
EBITDA reflects Net income (loss) excluding the impact of interest expense and loss on extinguishment of debt, provision for income taxes, depreciation, and amortization. We believe that EBITDA is a meaningful indicator of operating performance because we use it to measure our ability to service debt, fund capital expenditures, and expand our business. We also use EBITDA, as do analysts, lenders, investors, and others, to evaluate companies because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels, and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provision for income taxes can vary considerably among companies. EBITDA also excludes depreciation and amortization expense because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies.
Target Hospitality also believes that Adjusted EBITDA is a meaningful indicator of operating performance. Our Adjusted EBITDA reflects adjustments to exclude the effects of additional items, including certain items, that are not reflective of the ongoing operating results of Target Hospitality. In addition, to derive Adjusted EBITDA, we exclude gains or losses on the sale and disposal of depreciable assets and impairment losses because including them in EBITDA is inconsistent with reporting the ongoing performance of our remaining assets. Additionally, the gain or loss on sale and disposal of depreciable assets and impairment losses represents either accelerated depreciation or excess depreciation in previous periods, and depreciation is excluded from EBITDA.
Target Hospitality also presents Discretionary cash flows because we believe it provides useful information regarding our business as more fully described below. Discretionary cash flows indicate the amount of cash available after maintenance capital expenditures for specialty rental assets for, among other things, investments in our existing business.
Adjusted gross profit, EBITDA, Adjusted EBITDA and Discretionary cash flows are not measurements of Target Hospitality's financial performance under GAAP and should not be considered as alternatives to Gross profit, Net income (loss), or other performance measures derived in accordance with GAAP, or as alternatives to Cash flow from operating activities as measures of Target Hospitality's liquidity. Adjusted gross profit, EBITDA, Adjusted EBITDA, and Discretionary cash flows should not be considered as discretionary cash available to Target Hospitality to reinvest in the growth of our business or as measures of cash that is available to it to meet our obligations. In addition, the measurement of Adjusted gross profit, EBITDA, Adjusted EBITDA, and Discretionary cash flows may not be comparable to similarly titled measures of other companies. Target Hospitality's management believes that Adjusted gross profit, EBITDA, Adjusted EBITDA, and Discretionary cash flows provides useful information to investors about Target Hospitality and its financial condition and results of operations for the following reasons: (i) they are among the measures used by Target Hospitality's management team to evaluate its operating performance; (ii) they are among the measures used by Target Hospitality's management team to make day-to-day operating decisions, (iii) they are frequently used by securities analysts, lenders, investors and other interested parties as a common performance measure and to compare results across companies in Target Hospitality's industry.
Investor Contact:
Mark Schuck
(832) 702 – 8009
ir@targethospitality.com
Exhibit 1 | ||||||||||||
Target Hospitality Corp. Consolidated Statements of Comprehensive Income (loss) ($ in thousands, except per share amounts)
| ||||||||||||
Three Months Ended | For the Years Ended | |||||||||||
December 31, | December 31, | |||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||
Revenue: | ||||||||||||
Services income | $ | 40,948 | $ | 60,227 | $ | 187,532 | $ | 265,912 | ||||
Specialty rental income | 16,311 | 23,461 | 45,807 | 120,360 | ||||||||
Construction fee income | 32,518 | — | 87,296 | — | ||||||||
Total revenue | 89,777 | 83,688 | 320,635 | 386,272 | ||||||||
Costs: | ||||||||||||
Services | 63,968 | 30,408 | 209,348 | 132,142 | ||||||||
Specialty rental | 3,176 | 2,728 | 11,446 | 18,787 | ||||||||
Depreciation of specialty rental assets | 15,555 | 13,521 | 57,182 | 57,164 | ||||||||
Gross profit | 7,078 | 37,031 | 42,659 | 178,179 | ||||||||
Selling, general and administrative | 18,121 | 12,626 | 58,508 | 54,258 | ||||||||
Other depreciation and amortization | 4,056 | 3,947 | 16,204 | 15,642 | ||||||||
Other expense (income), net | 1,724 | (344) | 2,694 | (502) | ||||||||
Operating income (loss) | (16,823) | 20,802 | (34,747) | 108,781 | ||||||||
Loss on extinguishment of debt | — | — | 2,370 | — | ||||||||
Interest expense, net | 362 | 3,946 | 6,086 | 16,619 | ||||||||
Change in fair value of warrant liabilities | — | — | — | (675) | ||||||||
Income (loss) before income tax | (17,185) | 16,856 | (43,203) | 92,837 | ||||||||
Income tax expense (benefit) | (2,242) | 4,312 | (6,126) | 21,430 | ||||||||
Net income (loss) | (14,943) | 12,544 | (37,077) | 71,407 | ||||||||
Less: Net income attributable to the noncontrolling interest | (9) | 42 | 44 | 142 | ||||||||
Net income (loss) attributable to Target Hospitality Corp. common stockholders | (14,934) | 12,502 | (37,121) | 71,265 | ||||||||
Other comprehensive loss | ||||||||||||
Foreign currency translation | (4) | (95) | (13) | (147) | ||||||||
Comprehensive income (loss) | $ | (14,947) | $ | 12,449 | $ | (37,090) | $ | 71,260 | ||||
Weighted average number shares outstanding - basic | 99,785,307 | 99,189,824 | 99,520,649 | 100,135,249 | ||||||||
Weighted average number shares outstanding - diluted | 99,785,307 | 100,156,485 | 99,520,649 | 101,434,754 | ||||||||
Net income (loss) per share attributable to Target Hospitality Corp. | $ | (0.15) | $ | 0.13 | $ | (0.37) | $ | 0.71 | ||||
Net income (loss) per share attributable to Target Hospitality Corp. | $ | (0.15) | $ | 0.12 | $ | (0.37) | $ | 0.70 | ||||
Exhibit 2 | ||||||
Target Hospitality Corp. Condensed Consolidated Balance Sheet Data ($ in thousands) (unaudited) | ||||||
December 31, | December 31, | |||||
2025 | 2024 | |||||
Assets | ||||||
Cash and cash equivalents | $ | 8,348 | $ | 190,668 | ||
Accounts receivable, less allowance for credit losses | 56,200 | 49,342 | ||||
Other current assets | 8,790 | 9,326 | ||||
Total current assets | 73,338 | 249,336 | ||||
Specialty rental assets, net | 332,406 | 320,852 | ||||
Goodwill and other intangibles, net | 80,370 | 93,845 | ||||
Other non-current assets | 44,091 | 61,741 | ||||
Total assets | $ | 530,205 | $ | 725,774 | ||
Liabilities | ||||||
Accounts payable | $ | 44,393 | $ | 16,187 | ||
Deferred revenue and customer deposits | 9,282 | 699 | ||||
Current portion of long-term debt, net | — | 180,328 | ||||
Other current liabilities | 30,368 | 36,190 | ||||
Total current liabilities | 84,043 | 233,404 | ||||
Other non-current liabilities | 57,102 | 71,280 | ||||
Total liabilities | 141,145 | 304,684 | ||||
Stockholders' equity | ||||||
Common stock and other stockholders' equity | 93,998 | 88,701 | ||||
Accumulated earnings | 295,259 | 332,380 | ||||
Total stockholders' equity attributable to Target Hospitality Corp. stockholders | 389,257 | 421,081 | ||||
Noncontrolling interest in consolidated subsidiaries | (197) | 9 | ||||
Total stockholders' equity | 389,060 | 421,090 | ||||
Total liabilities and stockholders' equity | $ | 530,205 | $ | 725,774 | ||
Exhibit 3 | ||||||
Target Hospitality Corp. Condensed Consolidated Cash Flow Data ($ in thousands) (unaudited)
| ||||||
For the Years Ended | ||||||
December 31, | ||||||
2025 | 2024 | |||||
Cash and cash equivalents - beginning of year | $ | 190,668 | $ | 103,929 | ||
Cash flows from operating activities | ||||||
Net income (loss) | (37,077) | 71,407 | ||||
Adjustments: | ||||||
Depreciation | 59,911 | 59,331 | ||||
Amortization of intangible assets | 13,475 | 13,475 | ||||
Other non-cash items | 14,062 | 16,583 | ||||
Changes in operating assets and liabilities | 23,721 | (9,121) | ||||
Net cash provided by operating activities | $ | 74,092 | $ | 151,675 | ||
Cash flows from investing activities | ||||||
Purchases of specialty rental assets | (67,039) | (29,557) | ||||
Other investing activities | (751) | 715 | ||||
Net cash used in investing activities | $ | (67,790) | $ | (28,842) | ||
Cash flows from financing activities | ||||||
Other financing activities | (188,641) | (36,064) | ||||
Net cash used in financing activities | $ | (188,641) | $ | (36,064) | ||
Effect of exchange rate changes on cash and cash equivalents | 19 | (30) | ||||
Change in cash and cash equivalents | (182,320) | 86,739 | ||||
Cash and cash equivalents - end of year | $ | 8,348 | $ | 190,668 | ||
Exhibit 4 | |||||||||||
Target Hospitality Corp. Reconciliation of Gross profit to Adjusted gross profit ($ in thousands) (unaudited)
| |||||||||||
For the Three Months Ended | For the Years Ended | ||||||||||
December 31, | December 31, | ||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||
Gross Profit | $ | 7,078 | $ | 37,031 | $ | 42,659 | $ | 178,179 | |||
Adjustments: | |||||||||||
Depreciation of specialty rental assets | 15,555 | 13,521 | 57,182 | 57,164 | |||||||
Adjusted gross profit | $ | 22,633 | $ | 50,552 | $ | 99,841 | $ | 235,343 | |||
Exhibit 5 | |||||||||||
Target Hospitality Corp. Reconciliation of Net income (loss) to EBITDA and Adjusted EBITDA ($ in thousands) (unaudited)
| |||||||||||
For the Three Months Ended | For the Years Ended | ||||||||||
December 31, | December 31, | ||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||
Net income (loss) | $ | (14,943) | $ | 12,544 | $ | (37,077) | $ | 71,407 | |||
Income tax expense (benefit) | (2,242) | 4,312 | (6,126) | 21,430 | |||||||
Interest expense, net | 362 | 3,946 | 6,086 | 16,619 | |||||||
Loss on extinguishment of debt | — | — | 2,370 | — | |||||||
Other depreciation and amortization | 4,056 | 3,947 | 16,204 | 15,642 | |||||||
Depreciation of specialty rental assets | 15,555 | 13,521 | 57,182 | 57,164 | |||||||
EBITDA | $ | 2,788 | $ | 38,270 | $ | 38,639 | $ | 182,262 | |||
Adjustments | |||||||||||
Other expense (income), net | 1,724 | (344) | 2,694 | (502) | |||||||
Transaction expenses | 146 | 780 | 3,781 | 4,899 | |||||||
Stock-based compensation | 1,819 | 1,623 | 7,552 | 7,306 | |||||||
Change in fair value of warrant liabilities | — | — | — | (675) | |||||||
Other adjustments | 67 | 818 | 500 | 3,427 | |||||||
Adjusted EBITDA | $ | 6,544 | $ | 41,147 | $ | 53,166 | $ | 196,717 | |||
Exhibit 6 | ||||||||||||||||||
Target Hospitality Corp. Reconciliation of Net cash provided by operating activities to Discretionary cash flows ($ in thousands) (unaudited)
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For the Years Ended | ||||||||||||||||||
December 31, | ||||||||||||||||||
2025 | 2024 | |||||||||||||||||
Net cash provided by operating activities | $ | 74,092 | $ | 151,675 | ||||||||||||||
Less: Maintenance capital expenditures for specialty rental assets | (8,115) | (20,747) | ||||||||||||||||
Discretionary cash flows | $ | 65,977 | $ | 130,928 | ||||||||||||||
Purchase of specialty rental assets | (67,039) | (29,557) | ||||||||||||||||
Purchase of property, plant and equipment | (751) | (687) | ||||||||||||||||
Proceeds from sale of specialty rental assets and other property, plant and equipment | — | 1,402 | ||||||||||||||||
Net cash used in investing activities | $ | (67,790) | $ | (28,842) | ||||||||||||||
Principal payments on finance and finance lease obligations | (2,344) | (1,696) | ||||||||||||||||
Principal payments on borrowings from ABL Facility | (75,000) | — | ||||||||||||||||
Proceeds from borrowings on ABL Facility | 75,000 | — | ||||||||||||||||
Repayment of 2025 Senior Secured Notes | (181,446) | — | ||||||||||||||||
Repurchase of Common Stock | — | (33,496) | ||||||||||||||||
Distribution paid to noncontrolling interest | (260) | (65) | ||||||||||||||||
Proceeds from issuance of Common Stock from exercise of warrants | — | 3 | ||||||||||||||||
Proceeds from issuance of Common Stock from exercise of stock options | — | 1,850 | ||||||||||||||||
Payment of deferred financing costs | (535) | — | ||||||||||||||||
Taxes paid related to net share settlement of equity awards | (2,242) | (2,661) | ||||||||||||||||
Payment of debt extinguishment premium costs | (1,814) | — | ||||||||||||||||
Net cash used in financing activities | $ | (188,641) | $ | (36,064) | ||||||||||||||
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FAQ
What did Target Hospitality (TH) report for full-year 2025 revenue and net income?
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What caused Target Hospitality's decline in Adjusted EBITDA and utilization in 2025 (TH)?
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