Target Hospitality earnings date
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Target Hospitality (TH) Q3 2026 Earnings Report
TH Q3 2026 EPS Results
- Actual EPS
- -$0.09
- Consensus EPS
- $0.00
- Beat/Miss
- Missed by -$0.09
- One Year Ago EPS
- -$0.01
TH Q3 2026 Revenue Results
- Actual Revenue
- $129.06M
- Expected Revenue
- $118.35M
- Beat/Miss
- Beat by +$10.71M
- YoY Revenue Growth
- +29.90%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/09/2026
- Time
- Before Open
- Conference Call
- Monday, November 9, 2026
Target Hospitality's next earnings date is estimated for March 31, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
The call was strongly positive. Highlights significantly outweighed the limited lowlights, with substantial year-over-year revenue and EBITDA growth, expanding margins, strong cash generation, more than $1.7 billion of new multiyear awards, a pipeline exceeding 25,000 beds, reaffirmed 2026 guidance and significant 2027 targets. The principal challenges were the Government segment revenue comparison, temporary network optimization costs, HFS-South moderation and temporarily higher leverage from planned growth investment.
Management expects WHS utilized beds to grow at a double-digit percentage rate quarter-over-quarter through mid-2027, with WHS on track to generate more than 55% of consolidated revenue in 2026; it reaffirmed 2026 total revenue of $435 million to $445 million, adjusted EBITDA of $105 million to $115 million and capital spending, excluding acquisitions of $490 million to $510 million, while expecting additional Government transitional costs of approximately $3 million to $5 million over the balance of 2026. Revenue and adjusted EBITDA are expected to continue building through the balance of 2026 and into 2027, with the company expecting to exit 2027 with annualized revenue exceeding $750 million, adjusted EBITDA above $300 million and net leverage well below 2x; these figures are based entirely on the existing contracted portfolio and exclude the broader commercial pipeline and variable revenue upside that could amount to $60 million to $80 million of annual revenue per year combined.
- Strong Third-Quarter Revenue and EBITDA GrowthTotal revenue increased 30% year-over-year to approximately $129 million, while adjusted EBITDA grew 59% to approximately $34 million, driven by expanding contributions from the WHS contract portfolio.
- Adjusted EBITDA Margin ExpansionAdjusted EBITDA margin expanded approximately 480 basis points year-over-year to 27%, driven by execution on recent contract awards, strong unit economics and increasing operating leverage across communities.
- Robust Operating Cash Flow and Customer AdvancesYear-to-date cash flow from operating activities exceeded $150 million, supported by a sharp increase in customer advance payments tied to recent WHS contract awards.
- WHS Segment Revenue More Than DoubledWHS generated approximately $80 million of quarterly revenue, a 116% increase over the prior year, as multiple community developments advanced through their ramp-up phases.
- WHS Utilized Beds Scaled RapidlyAverage WHS utilized beds exceeded 6,200 during the quarter, with total utilized beds having scaled to more than 6,200 and additional beds expected to come online as recent awards ramp.
- Large Multiyear Contract AwardsSince January 2026, Target has secured more than $1.7 billion of multiyear contract awards representing over 10,000 beds. The awards support critical infrastructure development across North America, including data centers and large-scale power generation projects.
- Actionable Pipeline Expanded to More Than 25,000 BedsThe commercial pipeline increased from approximately 20,000 beds to more than 25,000 beds. Management said the opportunities are actionable, have permits and land in place, and span multiple customers, geographies and project sizes.
- Pipeline Is Geographically DiverseManagement said the pipeline extends beyond Texas into regions including the Midwest, Nevada, Indiana, Ohio and Wyoming, supporting the company's coast-to-coast operating reach.
- Favorable Contract Economics and VisibilityWHS contracts generally include fixed minimum take-or-pay or minimum revenue guarantees over multiyear periods. Average contract life is around 4 or 5 years; a cited recent contract was approximately 4 years with an ADR of around $150 per night.
- Contracted Portfolio Supports GuidanceThe 2026 outlook and 2027 exit-rate targets are based almost entirely on fixed minimum revenue guarantees from announced contracts and do not include pipeline contributions or variable revenue upside. Additional variable revenue upside associated with announced contracts could amount to $60 million to $80 million annually, but it is not included in those figures.
- Scope Expansions Increased Contract ValuesTotal contract value on recently announced WHS awards is now more than 10% above initial terms, reflecting scope expansions as customers request additional support at both Workforce Hubs and project sites.
- Value-Added Services Provide Additional GrowthPotential and existing services include enhanced site development, comprehensive transportation, job-site catering and additional security. Management said these services are already accretive, are relatively in line with the WHS segment's blended margin of around 50%, and are capital light.
- Expected Double-Digit WHS Bed GrowthWith communities building out on schedule, management expects WHS utilized beds to grow at a double-digit percentage rate quarter-over-quarter through mid-2027.
- 2026 Outlook ReaffirmedTarget reaffirmed 2026 guidance for total revenue of $435 million to $445 million, adjusted EBITDA of $105 million to $115 million, and capital spending excluding acquisitions of $490 million to $510 million.
- Significant 2027 Exit-Rate TargetsManagement expects to exit 2027 with annualized revenue exceeding $750 million and adjusted EBITDA above $300 million, based entirely on the existing contracted portfolio and without assuming contribution from the broader commercial pipeline.
- Long-Term Capital Investment in WHS GrowthQuarterly capital spending was approximately $246 million, primarily supporting long-term customer contracts tied to recent WHS awards. The investment was funded in part by customer advance payments, and management expects the contracts to generate significant revenue and operating cash flow.
- Financial Flexibility and Expected DeleveragingTarget ended the quarter with approximately $140 million in total available liquidity and a net leverage ratio of 1.4x. Management expects net leverage to be well below 2x exiting 2027 based on the current project schedule and anticipated cash generation.
- Supply Chain and Manufacturing Capacity Remain AdequateManagement reported no current supply-chain or labor issues, said factories were in line with the build schedule, and stated that the company has excess capacity to take on multiple additional jobs at the same time.
- Political and Permitting Backdrop Has Not Slowed DemandDespite an evolving political and regulatory backdrop, management said conversations with existing and prospective customers have not slowed and that customers' development plans remain intact. The company expects its pipeline to follow customer demand across regions.
- Community Engagement Supports the OfferingManagement said its more than 20 years of experience with customer and community relations in small communities helps address workforce accommodation, housing, transportation and local infrastructure concerns for large-scale projects.
- Demand Extends Beyond Data CentersThe pipeline and opportunity set also include critical mineral development, large-scale infrastructure and power-generation projects, including nuclear and other projects needed to expand the national grid.
- Competitive Position Remains FavorableManagement said the competitive backdrop has not materially changed, supply and demand remain in Target's favor, and the company is prioritizing larger, multiyear projects and cluster areas where it believes competition is more limited.
TH Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 31, 2027 | 2026 (Q4) | 0.12- | -0.15 | ― | ― |
| Nov 09, 2026 | 2026 (Q3) | -0.00-0.09 | -0.01 | -800.00% (-0.08) | |
| Aug 10, 2026 | 2026 (Q2) | -0.11-0.05 | -0.15 | 68.00% (+0.10) | |
| May 11, 2026 | 2026 (Q1) | -0.10-0.13 | -0.07 | -85.71% (-0.06) | |
| Mar 11, 2026 | 2025 (Q4) | -0.12-0.15 | 0.12 | -225.00% (-0.27) | |
| Nov 06, 2025 | 2025 (Q3) | -0.06-0.01 | 0.24 | -104.22% (-0.25) | |
| Aug 07, 2025 | 2025 (Q2) | -0.11-0.15 | 0.22 | -168.49% (-0.37) | |
| May 19, 2025 | 2025 (Q1) | -0.02-0.07 | 0.24 | -129.41% (-0.31) | |
| Mar 26, 2025 | 2024 (Q4) | 0.070.12 | 0.31 | -61.29% (-0.19) | |
| Nov 12, 2024 | 2024 (Q3) | 0.120.24 | 0.43 | -44.88% (-0.19) |
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.
