Target Hospitality Corp. reported its financial results for the first quarter of 2025, showing a notable decrease in revenue and net income compared to the same period in 2024. The company, one of North America's largest providers of vertically-integrated modular accommodations and value-added hospitality services, recorded a revenue of $69.9 million for the three months ended March 31, 2025, down from $106.7 million in the first quarter of 2024. The company also reported a net loss of $6.5 million, a significant decline from a net income of $20.4 million in the previous year. Despite these results, Target Hospitality reiterated its full-year 2025 outlook, projecting total revenue between $265 million and $285 million, and adjusted EBITDA between $47 million and $57 million. Segment results for the first quarter showed a decline in the Government segment, with revenue dropping to $25.7 million from $67.6 million in the prior year. However, revenue in the Workforce Hospitality Solutions segment increased to $8.1 million, up from $2.1 million, driven by activities related to the Workforce Hub Contract and ongoing construction of a community to support up to 2,000 individuals. These results highlight the company's focus on pursuing strategic growth initiatives despite current financial challenges.
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