Earnings Releases·Nov 9, 2026, 6:51 AM ET

Target Hospitality — Third Quarter 2026 Earnings Summary

Revenue surged 30% YoY to $129.1 million and 51% sequentially, driven by a 116% YoY jump in Workforce Hospitality Solutions (WHS) to $79.5 million, while Adjusted EBITDA expanded 59% YoY to $34.2 million with margins reaching 27%.
Net loss widened to $9.2 million ($0.09/share) from $0.8 million in the prior year period, primarily due to $246 million in capital expenditures supporting long-term WHS contracts and transitional costs in the Government segment.
Reaffirmed full-year 2026 guidance for revenue ($435M–$445M) and Adjusted EBITDA ($105M–$115M), projecting annualized revenue exceeding $750 million and Adjusted EBITDA above $300 million by end of 2027 based on existing contracts.
Secured over $1.7 billion in new multi-year WHS contract awards since January 2026 and closed a $660 million asset-based revolving credit facility in July 2026 to reduce borrowing costs by up to 250 basis points.
Total liquidity stands at approximately $440 million with a net leverage ratio of 1.4x; management highlighted a strategic pivot toward high-return industrial projects, including AI data centers, while noting continued transitional costs in the Government segment through 2026.