Target Hospitality beats Q2 revenue estimates; lifts 2025 guidance
Overview
Target Hospitality Q2 revenue falls 39% yr/yr but beats analyst expectations
Adjusted EBITDA declines significantly and misses analyst estimates, per LSEG data
Net loss of $14.9 mln in Q2, reversing prior year's profit
Outlook
Target raises 2025 revenue outlook to $310-$320 mln
Company expects 2025 adjusted EBITDA between $50 mln and $60 mln
Target anticipates increased government sector contributions in H2 2025
Result Drivers
CONTRACT TERMINATIONS - Revenue decline primarily due to termination of Pecos Children's Center and South Texas Family Residential Center contracts
NEW CONTRACTS - Dilley Contract and Workforce Hub Contract partially offset revenue decline
CONSTRUCTION EXPENSES - Increased operating expenses related to construction services for Workforce Hub Contract impacted adjusted EBITDA
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $61.60 mln | $56.40 mln (3 Analysts) |
Q2 Net Income |
| -$14.90 mln |
|
Q2 Adjusted EBITDA | Miss | $3.50 mln | $5.70 mln (3 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy."
Wall Street's median 12-month price target for Target Hospitality Corp is $8.75, about 16.6% above its August 6 closing price of $7.30
Press Release: ID:nPnGg2tza
