Target Hospitality Announces Multi-Year Contract Diversifying Customer Base and Expanding Regional Presence

Rhea-AI Summary

Target Hospitality (Nasdaq: TH) announced a multi-year Power Community Contract to build and operate modular workforce accommodations in Northern Nevada to support power generation for mining and data center projects.

The agreement is expected to generate approximately $35 million of revenue over a 25-month term beginning in June 2026, with capacity for up to 250 individuals and a minimal capital investment of about $8–$10 million. Construction is expected to complete by June 2026. The award adds to Target's 2025 pipeline (over $530 million of multi-year contracts) and expands the company's Workforce Hospitality Solutions regional presence.

Positive

• Contract value of $35 million over 25 months
• Minimal capital investment of $8–$10 million
• Capacity to support up to 250 individuals
• Adds to > $530 million multi-year 2025 contract pipeline
• Leverages existing Northern Nevada regional network capacity

Negative

• Revenue begins in June 2026, delaying near-term cash flow
• Contract term is limited to 25 months, not permanent
• Community supports a maximum of 250 workers (limited scale)

Insights

Infrastructure and Hospitality Contract Analyst

Target secured a low‑capex, multi‑year contract worth ~$35 million, expanding presence in Northern Nevada and adding capacity for 250 workers.

Target will build and operate a "Power Community" under a multi‑year lease and services agreement that runs for $35 million of expected revenue over a 25‑month term beginning in June 2026. The Community will support up to 250 individuals and include culinary, amenities, and facility support services, and construction is expected complete by June 2026.

The company will leverage existing regional capacity established earlier in 2025, limiting new capital outlay to approximately $8 to $10 million, while adding to its Workforce Hospitality Solutions segment and contributing to a reported > $530 million of multi‑year contracts announced in 2025. Key dependencies and risks include timely completion by June 2026, operational performance at the stated capacity, and contract execution over the full 25‑month term. Monitor construction milestones, occupancy/start dates in June 2026, and any material changes to the stated revenue or capital estimates within the contract period over the next 6–18 months.

THE WOODLANDS, Texas, Dec. 3, 2025 /PRNewswire/ -- Target Hospitality Corp. ("Target Hospitality", "Target" or the "Company") (Nasdaq: TH), one of North America's largest providers of vertically integrated modular accommodations and value-added hospitality services, today announced a multi-year lease and services agreement ("Power Community Contract" or the "Contract") to construct and provide comprehensive hospitality solutions supporting the expansion of power generation capacity essential to the economic growth in mining and data center development in Northern Nevada ("Power Community" or the "Community"). 

Target will construct and provide comprehensive facility services for the Power Community, including premium culinary offerings, enhanced community amenities, and comprehensive support services. The Power Community Contract is expected to generate approximately $35 million of revenue over its 25-month term, starting in June 2026. The Community will contribute to Target's growing Workforce Hospitality Solutions segment and have the capacity to support up to 250 individuals.

As Target previously announced in February 2025, in connection with its workforce hub contract supporting the development of Thacker Pass, the Company established new regional network capacity in Northern Nevada to focus on additional growth opportunities. 

Target's established presence was essential in securing the Power Community Contract and allows the Company to leverage existing regional capacity to complete the Community, resulting in a minimal capital investment of approximately $8 to $10 million. Target expects the Community construction to be completed by June 2026. 

The Power Community Contract underscores the growing need to expand North America's power generation capacity to support large-scale industrial projects, including mining and data center development. As this infrastructure development activity moves into more remote areas, the Contract highlights Target's distinctive ability to deliver customized vertically integrated workforce accommodations essential at various stages of this industrial growth. These market fundamentals have generated an unprecedented commercial growth pipeline and support Target's advanced discussions on other potential commercial opportunities to support this historic domestic investment cycle.

"We continue to make significant progress on our strategic initiatives, and including this award, Target has announced over $530 million of multi-year contracts in 2025. This Contract demonstrates our capacity to provide vertically integrated workforce accommodations across various industrial projects and regions, while reaffirming our decision to establish a strategic regional presence in Northern Nevada earlier this year. We continue to see a growing emphasis on the importance of high-quality workforce accommodations to ensure the success of remote capital projects and infrastructure development. We believe offering highly customized hospitality solutions across diverse commercial markets positions Target as a vital partner supporting this robust North American capital investment cycle," stated Brad Archer, President and Chief Executive Officer. 

About Target Hospitality

Target Hospitality is one of North America's largest providers of vertically integrated modular accommodations and value-added hospitality services in the United States. Target builds, owns and operates a customized and growing network of communities for a range of end users through a full suite of value-added solutions including premium food service management, concierge, laundry, logistics, security and recreational facilities services.

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, Government and Workforce Hospitality Solutions segments; effective management of our communities; 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; changes in end-market demand requirements that could lead to cancelation of contracts for convenience in the Government segment; our reliance on third party manufacturers and suppliers; failure to retain key personnel; increases in raw material and labor 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; unanticipated changes in our tax obligations; our obligations under various laws and regulations; the effect of litigation, judgments, orders, regulatory or customer bankruptcy proceedings on our business; our ability to successfully acquire and integrate new operations; global or local economic and political movements, including any changes in policy under the Trump administration or any future administration; federal government budgeting and appropriations; our ability to effectively manage our credit risk, liquidity and collect on our accounts receivable; our ability to fulfill Target Hospitality's public company obligations; any failure of our management information systems; our ability to refinance debt on favorable terms and meet our debt service requirements and obligations; and risks related to our outstanding debt obligations. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. 

Investor Contact
Mark Schuck
(832) 702 – 8009
ir@targethospitality.com

View original content:https://www.prnewswire.com/news-releases/target-hospitality-announces-multi-year-contract-diversifying-customer-base-and-expanding-regional-presence-302631047.html

SOURCE Target Hospitality

FAQ

What is the value and term of Target Hospitality's Power Community Contract (TH)?

The contract is expected to generate about $35 million over a 25-month term starting in June 2026.

How much capital will Target (TH) invest to build the Northern Nevada community?

Target expects a minimal capital investment of approximately $8–$10 million to complete the community.

How many workers will the Power Community support under Target's (TH) contract?

The Community will have capacity to support up to 250 individuals.

When will construction of the Target (TH) Power Community be completed?

Target expects construction to be completed by June 2026.

How does the Power Community contract affect Target's (TH) 2025 contract pipeline?

The award contributes to Target's 2025 multi-year contract total, which exceeds $530 million.