What is the market's earnings forecast for Target Hospitality next quarter?

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What is Target Hospitality's gross profit margin?

What were the key takeaways from Target Hospitality's earnings call?

Did Target Hospitality beat or miss consensus estimates last quarter?

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What factors drove the changes in Target Hospitality's revenue and profit?

- **$455M Contract Pipeline**: Secured record new contracts, including 19% expansion of Workforce Hub to $166M. 
- **Data Center Expansion**: 250-bed community operational, with 6x expansion to 1,500 beds underway. 
- **Government Recovery**: Gilley, TX community now generating $30M/year, offsetting PCC termination. 
- **Strong Liquidity**: $205M available cash to pursue $7T global AI infrastructure investment. 
- **2026 Growth**: Data center segment to add ~$20M in revenue with 40-50% margins.

**【CEO Summary Section】**
- **Strategic Growth Momentum**: Secured over $455 million in new multi-year contracts in 2025, including a 19% expansion of the Workforce Hub contract to $166 million. 
- **Data Center Expansion**: Completed initial 250-bed data center community, with plans to expand to up to 1,500 beds, driven by AI infrastructure demand. 
- **Government Segment Recovery**: Fully operationalized the Gilley, Texas community (2,400 beds) and expects $30 million annual revenue from this contract. 
- **Pipeline Strength**: Over 15,000 beds in active discussions across data centers, power projects, and critical minerals, supported by $7 trillion in global capital investment over five years.

**【CFO Financial Commentary】**
- **Q3 2025 Results**: Total revenue $99 million, Adjusted EBITDA $22 million. Government segment revenue $24 million (down due to PCC contract termination). 
- **Data Center Segment**: Generated $37 million in Q3, with $43 million committed over 2025-2027. Expansion to several hundred beds expected in 2026. 
- **Liquidity**: $30 million cash, $205 million total liquidity, supporting $61 million discretionary cash flow year-to-date. 
- **2025 Outlook**: Reaffirmed guidance of $310-$320 million revenue and $50-$60 million EBITDA.

**【Q&A Highlights】**
- **Asset Utilization**: 8,000 idle beds available for data center and power projects, with $2-$3 million quarterly carrying costs for West Texas assets. 
- **Target Hyperscale Brand**: Focused on data center and AI infrastructure, with 30%+ margin potential on long-term contracts. 
- **Government Contracts**: Active discussions on WEXMAC DOD award, with assets positioned for $10 billion opportunity. 
- **2026 Outlook**: Data center segment to contribute ~$20 million in 2026, with margins similar to Dilley (40-50%).

Target Hospitality Corp. (TH) Q3 2025 Earnings Call Transcript

- **Strategic Growth Momentum**: Secured $400+ million contracts, including a game-changing data center community lease/services agreement.
- **Revenue Expansion**: Workforce Hub Contract expanded to $154 million, driving 15% increase in 2025 revenue guidance to $310-320 million.
- **Government Sector Strength**: Reactivated $246 million Dilley, TX contract and $45 billion border security funding pipeline.
- **AI & Data Center Tailwinds**: $1.2 trillion domestic tech infrastructure investment driving demand for remote workforce solutions.
- **Financial Flexibility**: $190 million liquidity and no debt, enabling capital deployment for growth opportunities.

**【CEO Summary Section】**
- Announced 2 multiyear contracts valued at over $400 million, supporting diverse end markets including AI and data centers.
- Expanded Workforce Hub Contract to $154 million from $140 million, with construction completion expected by end-2025.
- Finalizing a multiyear lease and services agreement for a data center community, positioning as a 'game changer' for growth.
- Government segment reactivated Dilley, TX assets on schedule, with 2025 revenue expected to reach $30 million and 5-year term value of $246 million.
- Strong pipeline of opportunities in government and commercial sectors, supported by $1.2 trillion domestic tech infrastructure investment.

**【CFO Financial Commentary】**
- Q2 2025 total revenue: $62 million (vs. $100 million YoY decline due to contract terminations).
- Adjusted EBITDA: $4 million (vs. $12 million YoY decline).
- Workforce Hospitality Solutions (WHS) segment revenue: $15 million (67% of total segment revenue), driven by construction activity.
- Raised 2025 guidance: Revenue $310-320 million (15% midpoint increase), EBITDA $50-60 million (6% midpoint increase).
- Liquidity: $19 million cash + $175 million revolving credit facility, total available liquidity $190 million.

**【Q&A Key Highlights】**
- **Data Center Contract Structure**: Lease and services agreement (similar to Dilley model), with ownership of assets and higher margins than services-only contracts.
- **West Texas Assets**: Government interest remains strong, with site visits and positive feedback; carrying costs $2-3 million/quarter until contract awarded.
- **Government Spending**: $45 billion allocated for border security, creating demand for 100,000+ beds; Target's proprietary 'SecureFlex' modular housing solution gaining traction.
- **Oil & Gas Impact**: Data center projects require permanent workforce housing in remote locations, creating incremental demand for new assets (potential $50,000+ per bed capital expenditure).
- **Construction Timing**: Workforce Hub Contract construction to be completed by end-2025, with services revenue shifting to 2026-2027.


Target Hospitality Corp. (TH) Q2 2025 Earnings Call Transcript

- **Q1 Strong Performance**: $70M revenue, $22M EBITDA, driven by government reactivation and HFS stability.
- **Major Contract Wins**: $380M+ pipeline includes Workforce Hub (2025-2027) and lithium project (2025-2040).
- **Government Growth**: West Texas facility poised for 100,000+ bed expansion; DHS engagement at record levels.
- **Financial Strength**: $169M liquidity, 0.1x leverage; capital allocation focused on growth over returns.
- **Key Risks**: Government contract timing uncertainty, HFS margin pressure in competitive market.

**【CEO Opening Remarks】**
- Q1 2025 revenue of $70 million, driven by government and HFS segments.
- Secured two multi-year contracts worth $380M+ over the next five years.
- Workforce Hub contract progressing on schedule, with $5M in Q1 construction revenue.
- Government segment reactivated Dilley, TX facility ahead of schedule, generating $30M annual revenue.
- Strong pipeline across commercial (infrastructure, data centers) and government (immigration, national security) end markets.

**【CFO Financial Highlights】**
- Adjusted EBITDA of $22 million, up 15% YoY.
- Government segment revenue $26 million (down due to contract terminations), offset by Dilley reactivation.
- HFS segment revenue $44 million, with 90%+ customer renewal rate.
- Total capital spending $21 million, including $16M for strategic growth.
- Liquidity of $169 million, net leverage ratio 0.1x, enabling financial flexibility.

**【Q&A Key Takeaways】**
- **Government Assets**: West Texas facility in 'ready state' with $2-3M quarterly carrying costs; strong interest from DHS for 100,000+ bed expansion.
- **Lithium Project**: Construction phase ($65M 2025 revenue, 25-30% margin) wrapping Q4; services phase ($75M+ 2026-2027) set to begin.
- **M&A Strategy**: Focus on organic growth first, but open to accretive acquisitions for strategic diversification.
- **HFS Trends**: Competitive market with flat ADR, but stable 90%+ renewal rates.
- **Financial Flexibility**: $35M cash, no debt maturities until 2026; prioritizing contract diversification over shareholder returns.


Target Hospitality Corp. (TH) Q1 2025 Earnings Call Transcript

- **Q4 2024 Strong Performance**: $84 million revenue and $41 million EBITDA, driven by government and HFS segment growth.
- **Major Contract Wins**: $246 million 5-year Dilley contract and multi-year Lithium Americas workforce hub deal.
- **Financial Flexibility**: $191 million cash, 0 net debt, and 2025 guidance of $265-$285 million revenue.
- **Government Opportunity**: 100,000+ beds quoted for immigration projects, with West Texas assets positioned for rapid deployment.
- **Lithium Americas Expansion**: Phase 1 construction revenue of $65 million in 2025, with potential for multi-phase growth beyond 2027.

**【CEO Summary Section】**
- Target Hospitality achieved total revenue of $84 million in Q4 2024, with adjusted EBITDA of $41 million, driven by strong performance in both HFS and government segments.
- The government segment saw a transition due to the 2024 election cycle, but the company secured a significant 5-year contract for the Dilley community, expected to generate $246 million in revenue.
- The HFS segment maintained consistent demand, supported by long-term contracts with industrial customers, including a multi-year workforce hub contract with Lithium Americas.
- The company emphasized its ability to rapidly respond to government and industrial demand through its flexible asset base, including the reactivation of West Texas assets for potential immigration-related projects.

**【CFO Financial Commentary】**
- 2024 full-year revenue was $337 million, with adjusted EBITDA of $121 million. The government segment accounted for $157 million of revenue, while HFS and other segments contributed $180 million.
- Capital spending for 2024 was $32.5 million, focused on maintaining and enhancing the asset base. The company ended the year with $191 million in cash and $366 million in total liquidity, achieving 0 net debt.
- For 2025, the company expects total revenue of $265-$285 million and adjusted EBITDA of $47-$57 million, reflecting the impact of contract terminations and new awards.

**【Q&A Key Highlights】**
- **West Texas Assets**: The Pecos community is being maintained in a 'ready state' to capitalize on potential government or industrial opportunities, with carrying costs of $2-3 million per quarter.
- **Lithium Americas Contract**: The project is expected to enter multiple phases beyond 2027, with the first phase generating $65 million in construction revenue in 2025 and the remainder at a 30% margin.
- **Government Pipeline**: The company has quoted over 100,000 beds across various projects, with a focus on 3-5 year contracts that align with the government's need for 110,000-150,000 beds.
- **Capital Allocation**: The company prioritizes organic growth opportunities, with minimal capital required for most projects, and remains disciplined in returning excess cash to shareholders (e.g., $33 million in buybacks in 2024).

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