revenue
410–420 $million
FY 2026
official guidance
TARGET HOSPITALITY CORP.
Last · NASDAQ$17.26-1.46 (-7.80%)close · yahoo · 11h ago
Market cap$1.69B97.9M sh
P/E · TTM-45.4fwd 18.9 · eps -0.38 · loss
Beta1.49vs S&P 500
Div yield0.00%annual · TTM
52w range
$5.97$21.76
Volume1.8Msession
| Revenue | $347.4M |
|---|---|
| Operating income | $-21.8M |
| Net income | $-22.0M |
| Free cash flow | $103.2M |
| Operating margin | -6.3% |
| Net margin | -6.3% |
| Return on equity | -5.9% |
| Period | TTM 2026-06-30 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Contracted WHS growth and conservative near-term guidance outweigh the execution and financing risks.
Buy: Target Hospitality raised 2026 guidance to $410–$420 million of revenue and $85–$95 million of adjusted EBITDA, while 9,000 contracted beds and $1.4 billion of multiyear awards provide substantial visibility. The key tension is execution and funding: 2026 capex rises to $490–$510 million, the 20,000-bed pipeline remains largely uncontracted, and leverage is expected to increase before the contracted communities fully ramp.
Themes
- Whs Growth
- Contracted Beds
- Data Center Pipeline
- Capex Intensity
- Customer Advance Payments
- Leverage
Near term
WHS ramp should remain the primary earnings catalyst, with management targeting roughly 1,000 additional beds per quarter and the two largest recent contracts fully ramping by mid-2027.
Additional contract announcements could arrive soon; management said it is finalizing multiple agreements, each expected to exceed 1,000 beds.
Government segment margins face approximately $5–$7 million of transitional costs over the next two quarters as assets are redeployed toward WHS.
Heavy 2026 mobilization and construction spending will test cash conversion despite more than $100 million of customer advance payments year to date.
Longer term
Management projects exit-2027 annualized revenue above $700 million and adjusted EBITDA above $260 million from the existing contracted portfolio, excluding the broader pipeline.
WHS is expected to become Target’s largest segment in 2026 and contribute more than 50% of consolidated revenue, materially changing the company’s earnings mix.
The vertically integrated Hyper/Scale model may support premium economics in remote, time-sensitive data-center, power, and critical-mineral projects, but the company still faces regional turnkey competitors.
HFS-South provides a cash-generating legacy base with renewal rates above 90%, while selective asset redeployment could improve returns if customer obligations are preserved.
Red flags
The 20,000-plus-bed pipeline is heavily weighted to data centers and power but remains an opportunity set rather than contracted revenue; management provided no customer names, conversion timing, or competitive win rates.
The Uinta County, Wyoming opportunity has development approval, but final terms, conditions, and the first occupancy date remain unresolved.
The reported WHS margin of approximately 53.5% benefited from faster-than-expected ramp and operating efficiencies; management did not provide enough detail to independently assess sustainability.
Capital spending of $490–$510 million is large relative to $141 million of available liquidity, requiring substantial use of the expanded credit facility and increasing leverage before ramp-up cash flows arrive.
Management declined to discuss potential monetization of Dilley assets, leaving uncertainty around a potentially meaningful source or use of capital.
Forward outlook
ebitda
85–95 $million
FY 2026
official guidance
revenue
—
FY 2027
management framework
ebitda
—
FY 2027
management framework
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-03-11
- Net Margin Sharply Negative
- Current Ratio Low
Red flags
- Net Margin Sharply Negative — Net margin -11.6%
- Current Ratio Low — Current ratio 0.87
Upcoming earnings
1:30 PM UTC+1
Period
Sep 2026
Est. EPS
−$0.01
Est. revenue
119.9M
Earnings transcripts
- Motley Fool
Target Hospitality (TH) Q2 2026 Earnings Call Transcript
TARGET HOSPITALITY CORP.
- Issuer IR
Q2 2026 earnings call transcript
TARGET HOSPITALITY CORP.
- Issuer webcast
Q2 2019 webcast
TARGET HOSPITALITY CORP.
- Issuer IR
Q2 2019 earnings call transcript
TARGET HOSPITALITY CORP.
- Issuer webcast
Q4 2025 webcast
TARGET HOSPITALITY CORP.
- Issuer IR
Q3 2025 earnings call transcript
TARGET HOSPITALITY CORP.