EarningsQ2 2026 Earnings Report
MX:TH Q2 2026 EPS Results
Actual EPS-$0.81
Consensus EPS-$1.80
Beat/MissBeat by +$0.98
One Year Ago EPS-$2.54
MX:TH Q2 2026 Revenue Results
Actual Revenue$1.45B
Expected Revenue$1.34B
Beat/MissBeat by +$104.45M
YoY Revenue Growth+38.71%
Earnings Announcement Details
QuarterQ2 2026
Date08/10/2026
TimeBefore Open
Conference CallMonday, August 10, 2026
MX:TH Upcoming Earnings
Target Hospitality's next earnings date is estimated for November 11, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:TH Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong execution and rapid growth driven by the WHS segment: sizable contract awards (9,000+ beds, $1.4B+), a deep pipeline (20,000+ beds), significant sequential margin expansion (+700 bps), improved cash flows (> $110M YTD including > $100M customer advances), and materially enhanced liquidity ($660M credit facility). Challenges include elevated near-term capital spending (Q2 CapEx $132M; 2026 guide $490M–$510M) that will temporarily increase leverage, transitional costs of $5M–$7M related to Government asset optimization, moderation in HFS-South, and timing/ramp risks for large WHS contracts whose variable revenue accrues as communities scale (most upside realized in 2027). On balance, highlights materially outweigh lowlights as growth, contract visibility, margins, and financing flexibility provide a favorable outlook despite near-term investment and execution risks.Company Guidance
Strong Quarterly Revenue and EBITDA
Q2 total revenue of approximately $86 million and adjusted EBITDA of approximately $18 million, reflecting meaningful operating progress.
WHS Segment Rapid Growth
WHS revenue of approximately $36 million, a 142% year-over-year increase; average WHS utilized beds surpassed 4,000 during the quarter; WHS expected to contribute more than 50% of consolidated revenues for full-year 2026 based on current contracted portfolio.
Material Margin Expansion
Management reported more than 700 basis points (7 percentage points) of adjusted EBITDA margin expansion versus Q1, driven by ramping WHS communities and operating leverage.
Substantial Contract Awards and Pipeline
Since January 2026, secured over 9,000 contracted beds representing more than $1.4 billion of multiyear contracts; active commercial pipeline exceeding 20,000 beds across North America.
Strong Cash Flow & Customer Advances
Year-to-date cash flows from operating activities exceeded $110 million, including more than $100 million of advance payments from customers tied to recent WHS contract awards, accelerating cash conversion ahead of EBITDA.
Significant Liquidity and Improved Credit Capacity
Ended the quarter with approximately $141 million of total available liquidity and a net leverage ratio of 0.6x; replaced $175 million revolving credit facility with a new $660 million credit facility, substantially expanding committed borrowing capacity and financial flexibility.
Elevated Investment and Growth Guidance
Company raised 2026 outlook to total revenue of $410 million to $420 million and adjusted EBITDA of $85 million to $95 million; forecasted capital spending (ex-acquisitions) of $490 million to $510 million for 2026 to fund growth.
Longer-Term Financial Targets
Management projects exiting 2027 with annualized revenue exceeding $700 million and adjusted EBITDA above $260 million (based on existing contract portfolio, excluding broader pipeline), and expects leverage to decline to well below 3x by the end of 2027.
MX:TH Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed