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Mar 31
Target Hospitality Q1 2025 Earnings Report
Target Hospitality reported a net loss in Q1 2025, with lower revenue and profitability driven primarily by terminated government contracts.
Key Takeaways
Target Hospitality experienced a revenue decline and posted a net loss in Q1 2025 due to contract terminations in the Government segment, though strategic contract wins and diversification efforts helped offset some of the downside.
Revenue fell to $69.9M due to terminated government contracts.
Reported a net loss of $6.5M versus $20.4M net income in Q1 2024.
Signed a new $246M Dilley contract and advanced $140M Workforce Hub deal.
Ended the quarter with $169M in available liquidity and a 0.1x net leverage ratio.
Target Hospitality
Target Hospitality
Target Hospitality Revenue by Segment
Revenue by Segment
Government Revenue
CapyFin.comHospitality & Facilities Services - South Revenue
CapyFin.comAll Other Revenue
CapyFin.com Forward Guidance
Target Hospitality expects full-year 2025 revenue between $265M and $285M, and Adjusted EBITDA between $47M and $57M, driven by strong strategic contract execution and diversification.
Positive Outlook
- Secured multi-year $140M Workforce Hub Contract.
- Signed 5-year $246M Dilley Contract supporting U.S. government.
- Redeemed $181.4M in Senior Notes, saving ~$19.5M in annual interest.
- $169M in available liquidity with 0.1x net leverage.
- Strong commercial growth pipeline from diversified markets.
Challenges Ahead
- Revenue significantly declined from Q1 2024.
- Net loss due to termination of large government contracts.
- Lower adjusted EBITDA versus prior year.
- Reduced bed utilization and occupancy rates.
- Negative operating cash flow trend despite strategic investments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income