Loading...
•
Sep 30
Target Hospitality Q3 2025 Earnings Report
Target Hospitality announced third quarter 2025 results with continued execution on strategic growth initiatives and expanding end-market demand.
Key Takeaways
Target Hospitality reported a revenue increase to $99.4 million in Q3 2025, up from $95.2 million in Q3 2024, primarily driven by new contracts. However, the company experienced a net loss of $0.8 million and a decrease in Adjusted EBITDA due to higher operating expenses and the termination of a significant contract.
Revenue increased to $99.4 million in Q3 2025, up from $95.2 million in the same period last year.
The company reported a net loss of $0.8 million and a basic and diluted loss per share of $0.01 for the quarter.
Adjusted EBITDA decreased to $21.5 million in Q3 2025 from $49.7 million in Q3 2024, mainly due to higher operating expenses and a contract termination.
Target Hospitality secured over $455 million in new multi-year contracts in 2025, including significant awards in workforce hospitality solutions and government segments.
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 reiterated 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 growth initiatives and expanding end-markets.
Positive Outlook
- Secured over $455 million in new multi-year contract awards in 2025, demonstrating strong growth momentum.
- Workforce Hospitality Solutions (WHS) segment continues to grow with over $205 million in multi-year contracts, driven by critical mineral development and data center infrastructure projects.
- Successfully completed the ramp-up of the 2,400-bed Dilley community for the Government segment on schedule.
- Launched Target Hyper/Scale brand to capitalize on the rapidly expanding AI and data center end-market with customizable solutions.
- Advanced discussions for the first expansion of the Data Center Community, with potential to accommodate up to 1,500 individuals and extension options through September 2031.
Challenges Ahead
- The termination of the Pecos Children's Center Contract (PCC Contract) negatively impacted the Government segment's revenue and adjusted gross profit.
- Higher operating expenses associated with construction services activity under the Workforce Hub Contract contributed to decreased net income and Adjusted EBITDA.
- Decreases in Average Daily Rate (ADR) and utilization in the Hospitality & Facilities Services - South segment.
- A portion of services revenue from the Workforce Hub Contract will shift into 2026 due to additional construction activity.
- The company's forward-looking Adjusted EBITDA reconciliation to GAAP financial measures is unavailable without unreasonable effort, limiting transparency.
Revenue & Expenses
Visualization of income flow from segment revenue to net income