What does Target Hospitality do and what are its main business segments?

What guidance did Target Hospitality's management provide for the next earnings period?

What is Target Hospitality's latest dividend and current dividend yield?

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

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

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

What is Target Hospitality's gross profit margin?

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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

TH

TH fundamentals

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