Target Hospitality Corp. Reports $37.1 Million Net Loss in 2025

By Chris Stiles • Wednesday, March 11 13:54 • Permanent Link

Target Hospitality Corp. has released its financial results for the fourth quarter and year ended December 31, 2025. The company reported revenue of $320.6 million for the year, down from $386.3 million in 2024. The net loss for the year was ($37.1) million, compared to a profit of $71.4 million in 2024. Adjusted EBITDA for 2025 was $53.2 million, a significant decrease from the $196.7 million reported in 2024.

In the fourth quarter of 2025, revenue was $89.8 million, up from $83.7 million in the same period in 2024. However, the net loss for the quarter was ($14.9) million, compared to a profit of $12.5 million in Q4 2024. Adjusted EBITDA for Q4 2025 was $6.5 million, down from $41.1 million in Q4 2024.

The company attributes the year-over-year decreases in revenue and profitability to the termination of the Pecos Children’s Center contract effective February 21, 2025. However, it anticipates significant margin improvement in 2026 as recently awarded Workforce Hospitality Solutions (WHS) contracts continue to scale and following the completion of the Dilley contract ramp-up phases in 2025.

The company secured over $740 million in multi-year contracts since February 2025, with over $495 million tied to reactivating over 2,850 available beds supporting the rapidly expanding WHS segment. The company's total available liquidity as of December 31, 2025, was approximately $183 million, with zero net debt.

Looking ahead to 2026, Target Hospitality Corp. expects total revenue between $320 and $330 million and adjusted EBITDA between $60 and $70 million. The company also anticipates total capital expenditures between $65 and $75 million, excluding acquisitions, with a focus on continued growth in its WHS segment.

The company's growth pipeline is supported by sustained demand across its WHS segment, driven by ongoing U.S. investment in large-scale technology and power-generation infrastructure. This momentum supports a pipeline of more than 20,000 beds, representing the most active expansion cycle in the company's history. The market has reacted to these announcements by moving the company's shares -3.8% to a price of $7.59. Check out the company's full 8-K submission here.

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