Target Hospitality Q2 2023 Earnings Report
Key Takeaways
Target Hospitality reported a strong second quarter in 2023, with a 31% increase in revenue to $143.6 million and a net income of $46.5 million. The company's adjusted EBITDA increased by 62% to $90.9 million.
Second quarter revenue increased 31% to $143.6 million compared to the same period in 2022.
Net income was $46.5 million, compared to $22.9 million for the same period in 2022.
Adjusted EBITDA was $90.9 million, a 62% increase compared to the same period in 2022.
The company had approximately $195 million in total available liquidity and a net leverage ratio of 0.4x as of June 30, 2023.
Target Hospitality
Target Hospitality
Target Hospitality Revenue by Segment
Forward Guidance
The Company is providing its 2023 outlook, excluding acquisitions of: Total revenue between $550 and $580 million, Adjusted EBITDA between $346 and $365 million, Total capital spending between $25 and $35 million, excluding acquisitions and Zero net debt by year end 2023.
Positive Outlook
- Total revenue between $550 and $580 million
- Adjusted EBITDA between $346 and $365 million
- Total capital spending between $25 and $35 million, excluding acquisitions
- Zero net debt by year end 2023
- Strategic growth opportunities and seeks to allocate over $500 million of net growth capital through 2027
Challenges Ahead
- Sales cycles are inherently longer prior to official contract award and announcement.
- Final outcomes remain uncertain
- Excluding acquisitions
- Government ICF network capacity to approximately 10,000 ICF beds across multiple geographic locations
- Anticipates contract specifications being finalized later in 2023
Revenue & Expenses
Visualization of income flow from segment revenue to net income