Target Hospitality Third Quarter 2025 Financial Results

Financial Results and Operational Achievements

Target Hospitality Corp. (NASDAQ: TH), one of North America's largest modular accommodation providers, announced its results for the third quarter of 2025. As of September, revenues were recorded at $99.4 million, and net losses were determined to be ($0.8 million). The loss per share was $0.01. Adjusted EBITDA reached $21.5 million.

In the first nine months of 2025, net cash provided by operating activities was recorded at $68.4 million, while discretionary cash flow reached $61.3 million. As of September, total liquidity was at $205 million, and the net debt ratio was zero.

Strategic Developments and Contracts

Target announced a total of $455 million in multi-year contracts aimed at various markets in 2025. These include the Workforce Hub Contract, which will generate $166 million in revenue, representing a 19% increase over the previous contract value. Additionally, under the Dilley Contract, strategically important south Texas assets were reactivated, and this project received an award valued at $246 million to support critical initiatives from the federal government.

A new community was created for the rapidly expanding AI and data center market with a service contract worth $43 million. The first phase was completed with a targeted 250 beds, thus responding to the increasing demand for data center services.

CEO's Assessment

Brad Archer, CEO, stated, "We continue to make progress towards our strategic growth targets. Throughout 2025, we signed new contracts worth $455 million. The demand coming from the government sector and the surge in AI infrastructure investments are strengthening market dynamics. We are committed to seizing growth opportunities."

Financial Results

As of the third quarter, up to September 30, 2025, revenue was $99.4 million, and net loss was reported at ($0.8 million). The adjusted EBITDA for 2025 was realized at $21.5 million, while the net income loss showed a significant decrease compared to the same period last year.

Structural services carried out under the Workforce Hub Contract led to an increase in operational expenses; this resulted in a loss in net income. On the other hand, total assets remained at $541.2 million, while the net debt ratio continued to be zero.

2025 Outlook

Target maintained its total revenue guidance for 2025 between $310 million and $320 million, while the estimate for adjusted EBITDA was set between $50 million and $60 million. These targets are notable in line with growth strategies and expanding market expectations.