Target Hospitality Reports Decrease in Revenue and Net Income

By Bobby Samwell • Wednesday, March 26 10:04 • Permanent Link

Target Hospitality Corp. has reported its financial and operational highlights for the fourth quarter and year ended December 31, 2024. The company's revenue for the year was $386.3 million, with a net income of $71.4 million. The basic and diluted income per share were $0.71 and $0.70 respectively. Adjusted EBITDA was $196.7 million.

Compared to the previous year, there has been a significant decrease in various metrics. Revenue for the year ended December 31, 2024, was down from $563.6 million in 2023. Net income also decreased from $173.7 million in 2023. Adjusted EBITDA saw a decline from $344.2 million in 2023.

For the fourth quarter of 2024, revenue was $83.7 million, with net income of $12.5 million and adjusted EBITDA of $41.1 million. These figures are down from the same period in 2023, where revenue was $126.2 million, net income was $37.8 million, and adjusted EBITDA was $67.7 million.

Additionally, the company executed approximately $33.4 million of stock repurchases during the year ended December 31, 2024, and redeemed all outstanding 10.75% senior secured notes due 2025, maintaining financial flexibility.

Looking ahead, Target Hospitality Corp. has revised its 2025 outlook with a total revenue between $265 and $285 million and adjusted EBITDA between $47 and $57 million. These revisions reflect the termination of the Pecos Children's Center (PCC) contract and the recently announced Dilley contract award.

In terms of capital management, the company had approximately $32.5 million of capital expenditures for the year ended December 31, 2024, with approximately $191 million of cash and cash equivalents and a net leverage ratio of 0.0 times.

The company's business segments also experienced changes. In the Government segment, revenue for the three months ended December 31, 2024, decreased to $43.7 million from $87.5 million in 2023. In the Hospitality & Facilities Services * South segment, revenue for the same period was $36.7 million compared to $36.2 million in 2023. The All Other segment also saw an increase in revenue.

As a result of these announcements, the company's shares have moved 5.2% on the market, and are now trading at a price of $6.45. If you want to know more, read the company's complete 8-K report here.

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