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Dec 31, 2024
Target Hospitality Q4 2024 Earnings Report
Target Hospitality reported a revenue decline and lower profitability for Q4 2024, impacted by contract terminations and amortization effects.
Key Takeaways
Target Hospitality's Q4 2024 revenue decreased to $83.7 million, down from $126.2 million year-over-year. The company reported net income of $12.5 million and adjusted EBITDA of $41.1 million. The hospitality and facilities services segment showed stable performance, while the government segment faced significant reductions due to contract terminations and amortization effects.
Q4 2024 revenue was $83.7 million, down 33.7% year-over-year.
Net income for the quarter was $12.5 million.
Adjusted EBITDA reached $41.1 million in Q4 2024.
Average utilized beds were 11,911 with an overall utilization rate of 73%.
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 reduced revenue and adjusted EBITDA in 2025 due to prior contract terminations, offset partially by new contracts and diversification efforts.
Positive Outlook
- Strong liquidity position with $366 million in available liquidity.
- Expected $68 million minimum revenue from Workforce Hub Contract in 2025.
- New 5-year $246 million Dilley Contract to drive growth.
- Strong positioning in critical mineral development and government end-markets.
- Operational efficiency and low leverage providing financial flexibility.
Challenges Ahead
- Revenue guidance for 2025 lowered due to contract terminations.
- Anticipated adjusted EBITDA reduction in 2025.
- Government segment revenues heavily impacted by prior contract wind-downs.
- Lower utilization compared to previous year.
- Potential headwinds from reduced infrastructure revenue amortization.
Revenue & Expenses
Visualization of income flow from segment revenue to net income