NASDAQ$TH

Target Hospitality Corp · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Target Hospitality reported a revenue decline and lower profitability for Q4 2024, impacted by contract terminations and amortization effects.

Target Hospitality's Q4 2024 revenue decreased to $83.7 million, down from $126.2 million year-over-year. The company reported net income of $12.5 million and adjusted EBITDA of $41.1 million. The hospitality and facilities services segment showed stable performance, while the government segment faced significant reductions due to contract terminations and amortization effects.

  • Q4 2024 revenue was $83.7 million, down 33.7% year-over-year.
  • Net income for the quarter was $12.5 million.
  • Adjusted EBITDA reached $41.1 million in Q4 2024.
  • Average utilized beds were 11,911 with an overall utilization rate of 73%.

Headline financials

Total Revenue

$83.7M

Previous: $126M-33.7%
EPS (adj)

$0.12

Previous: $0.29-58.6%
Average Utilized Beds

11.9K

No prior period
Utilization

73.0%

No prior period
Average Daily Rate

$72.14

No prior period
Capital Expenditures

-$6.28M

Previous: -$4.21M-49.4%
Net Income

$12.5M

Previous: $37.8M-66.9%
Operating Income

$20.8M

Previous: $50.5M-58.8%
Gross Profit

$37M

Previous: $58M-36.1%

Revenue & EPS history

Target Hospitality · Revenue · Quarterly

$83.7M

Q4 2024-33.7%vs Q4 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Target Hospitality · $146M total across 3 segments · Q3 2023

  • Government
    $106M-14.4%
  • Hospitality & Facilities Services - South
    $37.5M+11.6%
  • All Other
    $2.87M+275.3%

Forward guidance

Target Hospitality expects reduced revenue and adjusted EBITDA in 2025 due to prior contract terminations, offset partially by new contracts and diversification efforts.

Tailwinds

  • Strong liquidity position with $366 million in available liquidity.
  • Expected $68 million minimum revenue from Workforce Hub Contract in 2025.
  • New 5-year $246 million Dilley Contract to drive growth.
  • Strong positioning in critical mineral development and government end-markets.
  • Operational efficiency and low leverage providing financial flexibility.

Headwinds

  • Revenue guidance for 2025 lowered due to contract terminations.
  • Anticipated adjusted EBITDA reduction in 2025.
  • Government segment revenues heavily impacted by prior contract wind-downs.
  • Lower utilization compared to previous year.
  • Potential headwinds from reduced infrastructure revenue amortization.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+2.0%

Avg return

Earnings day

+3.2%

Avg return

5 days after

+4.5%

Avg return

30 days after

65%

20 / 31 earnings

Positive

+23.7%

Q4 2021

Best reaction

-34.9%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+17.9%+21.7%
Q4 2025+13.8%+14.0%+81.2%
Q3 2025-15.5%-15.4%+6.7%
Q1 2025+5.1%+3.8%-0.3%
Q4 2024+6.4%+7.3%+3.6%
Q3 2024+6.4%-1.5%-6.2%
Q2 2024+12.5%+10.5%+10.5%
Q1 2024+5.0%+4.1%+0.5%
Q4 2023+4.8%+1.8%+25.4%
Q3 2023-3.6%-9.1%-13.4%
Q2 2023+7.8%+13.5%+21.9%
Q1 2023+13.9%+25.2%+24.5%
Q4 2022+6.0%+8.4%-23.0%
Q3 2022+17.6%+23.2%+38.6%
Q2 2022-9.6%-2.6%-7.8%
Q1 2022-11.0%-13.3%-3.2%
Q4 2021+23.7%+18.6%+19.6%
Q3 2021-2.0%-13.1%-31.6%
Q2 2021-16.4%-14.4%-4.2%
Q1 2021+8.3%+32.8%+56.6%
Q4 2020+6.8%-7.7%+30.6%
Q3 2020+3.2%+0.4%+30.7%
Q2 2020+12.4%+13.8%-9.0%
Q1 2020+8.2%+5.9%-28.6%
Q4 2019-34.9%-3.1%-58.3%
Q3 2019-11.2%-15.0%-15.5%
Q2 2019-13.5%-12.2%-8.9%
Q1 2019-0.7%-1.1%-6.7%
Q3 2018+0.1%+0.2%+1.7%
Q2 2018+0.5%+0.5%+0.2%
Q1 2018-0.5%+1.0%-0.7%
Q4 2018
Q3 2017
Q2 2017
Q1 2017

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