Target Hospitality Corp. announced its second-quarter 2025 financial results, reporting revenue of $61.6 million, a decrease from $100.7 million in the same period of 2024. The company posted a net loss of $14.9 million, compared to a net income of $18.4 million in Q2 2024, with diluted loss per share at $0.15.
Adjusted EBITDA for the quarter was $3.5 million, significantly lower than $52.2 million in the prior-year period. These declines were primarily driven by the termination of the Pecos Children's Center (PCC) contract, effective February 21, 2025, and the South Texas Family Residential Center (STFRC) contract, effective August 9, 2024. These impacts were partially offset by contributions from the Dilley Contract and growth in the Workforce Hospitality Solutions segment.
Despite the year-over-year declines, Target Hospitality raised its full-year 2025 financial outlook, now projecting total revenue between $310 million and $320 million, up from the previous range of $265 million to $285 million. Adjusted EBITDA guidance was also increased to between $50 million and $60 million, from $47 million to $57 million. This revised outlook reflects the expansion of the Workforce Hub Contract and anticipated increased contributions from the Dilley community.
The Workforce Hub Contract's total value increased to approximately $154 million due to scope expansion and community enhancements, with additional construction activity expected in 2025. Furthermore, Target Hospitality entered into an agreement with its previous non-profit partner for the close-out and settlement of the PCC Contract, which will result in a payment of approximately $11.8 million to the company. The company also began preliminary construction activity for a new Data Center Community, signaling further diversification.
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