Target Hospitality Q4 revenue beats estimates on Workforce Hub, Dilley contract

Reuters03-11
<a href="https://laohu8.com/S/TH">Target Hospitality</a> Q4 revenue beats estimates on Workforce Hub, Dilley contract

Overview

  • U.S. modular accommodations provider's Q4 revenue rose and beat analyst expectations

  • Company posted Q4 net loss as operating expenses rose and major contract ended

  • Adjusted EBITDA for Q4 fell sharply from prior year

Outlook

  • Target Hospitality sees 2026 revenue between $320 mln and $330 mln

  • Company expects 2026 adjusted EBITDA between $60 mln and $70 mln

  • Target Hospitality anticipates margin improvement in 2026 as new contracts scale

Result Drivers

  • WORKFORCE HUB AND DILLEY CONTRACTS - Q4 revenue growth was primarily driven by the Workforce Hub Contract and the Dilley Contract award

  • PCC CONTRACT TERMINATION - Termination of the higher-margin Pecos Children's Center Contract weighed on results

  • HIGHER OPERATING EXPENSES - Increased operating expenses from construction services under the Workforce Hub Contract contributed to lower net income and Adjusted EBITDA

Company press release: ID:nPn4KDBcSa

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Beat

$89.80 mln

$85.83 mln (4 Analysts)

Q4 EPS

-$0.15

Q4 Net Income

-$14.90 mln

Q4 Adjusted EBITDA

$6.50 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"

  • Wall Street's median 12-month price target for Target Hospitality Corp is $10.00, about 25.3% above its March 10 closing price of $7.98

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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