Target Hospitality Corp. reported its financial results for the fourth quarter and full year ended December 31, 2024. For the full year, revenue was $386.3 million, a decrease from $563.6 million in 2023, while net income was $71.4 million, down from $173.7 million. Adjusted EBITDA for the year was $196.7 million, compared to $344.2 million in the prior year.
The year-over-year declines were primarily due to the full amortization of the Pecos Children's Center (PCC) infrastructure enhancement revenue by November 2023, lower PCC minimum lease and variable services revenue, and the termination of the South Texas Family Residential Center (STFRC) contract effective August 9, 2024. For the fourth quarter, revenue was $83.7 million, net income was $12.5 million, and Adjusted EBITDA was $41.1 million, all lower than the prior year's comparable period.
The company also announced the successful redemption of all $181.4 million of its 10.75% Senior Secured Notes due 2025 on March 25, 2025, for approximately $183.8 million. This action is expected to result in annual interest expense savings of approximately $19.5 million. Target Hospitality reiterated its strong balance sheet with $191 million in cash and cash equivalents and zero net debt as of December 31, 2024.
Target Hospitality provided a revised full-year 2025 financial outlook, projecting total revenue between $265 million and $285 million and Adjusted EBITDA between $47 million and $57 million. This guidance incorporates the impact of the PCC contract termination, effective February 21, 2025, and the recently awarded Dilley Contract, effective March 5, 2025. The company highlighted its strategic diversification efforts, including the multi-year Workforce Hub Contract and the Dilley Contract, as foundational for future growth.
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