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Jun 30
Target Hospitality Q2 2025 Earnings Report
Target Hospitality reported its second quarter 2025 results, showing a decrease in revenue and a net loss, primarily due to contract terminations in the government segment, while making progress on strategic diversification initiatives and raising its full-year 2025 outlook.
Key Takeaways
Target Hospitality experienced a significant decline in revenue and reported a net loss in Q2 2025, largely due to the termination of major government contracts. Despite these challenges, the company made substantial progress in strategic diversification, securing over $400 million in new multi-year contracts and raising its full-year 2025 outlook.
Revenue for Q2 2025 decreased to $61.6 million from $100.7 million in Q2 2024, primarily due to government contract terminations.
The company reported a net loss of $14.9 million and a basic and diluted loss per share of $0.15 for Q2 2025.
Target Hospitality secured over $400 million in new multi-year contracts in 2025, including a $154 million Workforce Hub Contract and a $246 million Dilley Contract.
The company raised its full-year 2025 revenue outlook to between $310 million and $320 million, reflecting strong momentum and strategic diversification.
Target Hospitality
Target Hospitality
Target Hospitality Revenue by Segment
Revenue by Segment
Government Revenue
CapyFin.comHospitality & Facilities Services - South Revenue
CapyFin.comWorkforce Hospitality Solutions Revenue
CapyFin.comAll Other Revenue
CapyFin.com Forward Guidance
Target Hospitality raised its full-year 2025 outlook, expecting total revenue between $310 million and $320 million and Adjusted EBITDA between $50 million and $60 million, driven by strategic diversification and new contract awards.
Positive Outlook
- Increased full-year 2025 revenue outlook to $310-$320 million.
- Increased full-year 2025 Adjusted EBITDA outlook to $50-$60 million.
- Secured over $400 million in multi-year contracts in 2025, supporting diverse end-markets.
- Strengthened Workforce Hub Contract with community enhancements, increasing total contract value to approximately $154 million.
- Announced a 5-year, $246 million Dilley Contract award, reactivating strategically located South Texas assets.
Challenges Ahead
- Additional construction activity for the Workforce Hub Contract will shift a portion of expected services revenue into 2026.
- The Dilley community is still in a ramp-up period, with increased contributions anticipated in the second half of 2025.
- Preliminary construction activity has begun for the Data Center Community, but additional economic details are pending final contract discussions.
- The company's ability to achieve its outlook depends on successfully managing operational, economic, political, and regulatory risks.
- Future results could be impacted by changes in end-market demand requirements or contract cancellations for convenience in the Government segment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income