By Connor Hart
Shares of Target Hospitality climbed after the company logged higher-than-expected revenue in the fourth quarter and issued an upbeat outlook for the year.
The stock gained 15%, to $9.15, in premarket trading Wednesday. Through Tuesday's close, shares are up nearly 50% over the past year.
The company, which provides vertically integrated modular accommodations and hospitality services, swung to a loss of $14.9 million, or 15 cents a share, from a profit of $12.5 million, or 12 cents a share, a year earlier.
Target Hospitality attributed the decline primarily to higher operating expenses associated with construction-services activity, as well as the terminations of a historically higher-margin contract. The company said it anticipates meaningful margin improvement in 2026, in part as it turns focus toward higher-margin, service-focused revenues.
Revenue rose 7.3% to $89.8 million during the recent quarter, topping Wall Street views for $85.8 million.
Chief Executive Brad Archer said Target Hospitality broadened its contract portfolio and accelerated expansion into high-growth end markets last year, and that the company stands to benefit from those actions in the year ahead.
Looking forward, Target Hospitality guided for adjusted Ebitda--or earnings before interest, taxes, depreciation and amortization--of $60 million to $70 million this year. Revenue is projected to come in between $320 million and $330 million.
Analysts were looking for adjusted Ebitda of $55.3 million on revenue of $285.3 million.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
March 11, 2026 07:47 ET (11:47 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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