Shares of Target Hospitality Corp (TH) are soaring 6.09% in pre-market trading on Thursday following the company's announcement of better-than-expected third-quarter results and a positive outlook for the full year 2025.
The hospitality services provider reported Q3 revenue of $99.4 million, significantly beating analyst expectations of $84.8 million. Despite posting a net loss of $0.8 million, or $0.01 per share, the company outperformed the consensus estimate of a $0.04 loss per share. The strong revenue performance was primarily driven by new contract awards, including the Workforce Hub and Dilley contracts, as well as the company's entry into the AI and data center market with a $43 million Data Center Community Contract.
Investors are also encouraged by Target Hospitality's optimistic full-year 2025 guidance. The company expects total revenue between $310 million and $320 million, with adjusted EBITDA projected to be between $50 million and $60 million. This outlook, coupled with the company's strategic growth initiatives and expanding end-market demand, appears to be fueling investor confidence and driving the stock's upward movement.
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