The Woodlands – November 10, 2026 -- Target Hospitality Corp. (NASDAQ: TH) reported third-quarter revenue of $129.1 million, up 30% from $99.4 million a year earlier and 51% from the prior quarter, as its Workforce Hospitality Solutions (WHS) segment scaled to more than 6,200 utilized beds.
Adjusted EBITDA rose 59% to $34.2 million from $21.5 million, and margin widened roughly 480 basis points to 27%. The company still posted a net loss of $9.2 million, or $0.09 per share.
Contract awards top $1.7 billion since January
Since January 2026, Target has won multi-year awards worth more than $1.7 billion covering over 10,000 beds. Customers span large-scale industrial projects, including AI data centers and power generation. The contracts carry minimum take-or-pay commitments and, in many cases, significant advance payments.
Several recent WHS awards have been expanded, lifting total contract value by more than 10% over initial terms.
Margin gain tied to Dilley ramp-up and richer service mix
Management attributed the growth to WHS expansion and the completed ramp-up phases of the Dilley, Texas contract. The margin improvement reflects a shift toward higher-margin hospitality services, including premium accommodations and community amenities, plus operating efficiencies as WHS communities scale. Target expects further Adjusted EBITDA growth as previously announced contracts move through phased development over the coming quarters.
Customer advances fund $246 million capex quarter
Target spent about $246 million on capital expenditures in the quarter, mainly for long-term WHS contracts, partly funded by customer advance payments. Year-to-date net cash from operating activities reached $154.2 million, and Discretionary Cash Flow was $150.0 million, driven by those advances.
On July 24, the company closed a new $660 million asset-based revolving credit facility, cutting borrowing costs by up to 250 basis points. At September 30, Target held about $3 million in cash and had drawn roughly $223 million on the facility. Undrawn commitments were about $437 million, subject to borrowing base availability and other conditions. Total liquidity was approximately $440 million and net leverage stood at 1.4x. The ratio is calculated on a last-quarter-annualized basis, as the facility permits through the quarter ending June 30, 2028.
Pipeline exceeds 25,000 beds, with some in advanced talks
Target reports a geographically diverse pipeline of more than 25,000 potential beds, a portion in advanced contract discussions. Demand is concentrated in data center, power generation and other critical infrastructure projects served through its Target Hyper/Scale platform. CEO Brad Archer called it the "deepest commercial pipeline in our history."
The company is also pursuing value-added adjacencies and incremental services to capture a larger share of customers' total development spend. It reaffirmed its full-year 2026 outlook.