Overview
Target Hospitality Q3 revenue beats analyst expectations, driven by new contract awards
Company reports Q3 net loss of $0.8 mln, compared to $20.1 mln profit last year
Adjusted EBITDA for Q3 falls to $21.5 mln from $49.7 mln last year
Outlook
Target Hospitality sees full-year 2025 revenue between $310 mln and $320 mln
Company expects 2025 adjusted EBITDA between $50 mln and $60 mln
Target Hospitality anticipates increased contributions from Government segment in subsequent quarters
Result Drivers
NEW CONTRACTS - Revenue increase driven by Workforce Hub and Dilley contracts, despite PCC Contract termination
AI AND DATA CENTER EXPANSION - Entered AI and data center market with $43 mln Data Center Community Contract
OPERATING EXPENSES - Higher operating expenses from construction services under Workforce Hub Contract impacted net income
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $99.40 mln | $84.85 mln (4 Analysts) |
Q3 Net Income | -$800,000 | ||
Q3 Adjusted EBITDA | $21.50 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"
Wall Street's median 12-month price target for Target Hospitality Corp is $10.00, about 22.8% above its November 5 closing price of $7.72
Press Release: ID:nPn9ht5pra
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)