Target Hospitality posts 39% revenue gain, raises full-year outlook

Target Hospitality Corp. (NASDAQ: TH) reported second-quarter 2026 revenue of $85.5 million, a 39% increase from $61.6 million in the same period a year earlier, according to a company press release. The modular accommodations provider recorded a net loss of $9.0 million, or $0.09 per share, compared with a net loss of $14.9 million, or $0.15 per share, in the prior-year quarter.

Adjusted EBITDA rose to $18.2 million from $3.5 million in the second quarter of 2025, driven by growth in the company's Workforce Hospitality Solutions segment, which generated $36.3 million in revenue for the quarter. The Government segment contributed $13.5 million in revenue, up from $7.5 million a year earlier, following the reactivation of the Dilley, Texas community in March 2025. The Hospitality and Facilities Services – South segment posted revenue of $32.6 million, down from $36.2 million in the prior-year period due to lower utilization.

Year-to-date net cash provided by operating activities reached $111.0 million, compared with $15.0 million in the first half of 2025, aided by advance payments from customers tied to recent contract awards. Total available liquidity stood at approximately $141 million as of June 30, 2026, with a net leverage ratio of 0.6x.

On July 24, 2026, Target Hospitality closed a new $660 million asset-based revolving credit facility, replacing a prior $175 million facility. The new facility matures in July 2031 and reduces borrowing costs by up to 250 basis points, the company said.

Since January 2026, the company said it has secured over $1.4 billion in multi-year contract awards representing more than 9,000 contracted beds in the Workforce Hospitality Solutions segment.

Target Hospitality raised its full-year 2026 outlook, projecting total revenue of $410 million to $420 million and Adjusted EBITDA of $85 million to $95 million, increases of approximately 11% and 13%, respectively, from prior guidance. The company expects capital expenditures of $490 million to $510 million, excluding acquisitions. The company also stated it targets annualized revenue exceeding $700 million and Adjusted EBITDA above $260 million exiting 2027, based on its existing contract portfolio.

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