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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%.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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