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THE WOODLANDS, Texas - Target Hospitality Corp. (NASDAQ:TH), a $798 million market cap company with a robust 49.85% gross profit margin, announced Monday it has secured a multi-year contract to construct and provide hospitality services for a data center campus in the Southwestern United States.
The agreement, which runs through September 2027, is expected to generate approximately $43 million in minimum committed revenue over its initial term, with about $5 million to be realized in 2025, according to a press release from the company. According to InvestingPro data, the company maintains strong liquidity with current assets exceeding short-term obligations and operates with moderate debt levels, positioning it well for this expansion.
Target will build and operate a facility to house workers supporting the development of a regional data center campus. The community will initially accommodate 250 individuals with capacity to expand to approximately 1,500 people. The company anticipates first occupancy by late 2025.
The modular accommodations provider plans to utilize a portion of its existing asset portfolio for the project, resulting in a net capital investment of approximately $6 to $9 million this year.
"This contract broadens our customer reach and further illustrates our ability to deliver comprehensive hospitality solutions across diverse commercial end-markets," said Brad Archer, President and Chief Executive Officer of Target Hospitality.
The company will provide full turnkey support including premium culinary offerings, facilities management, and comprehensive support services for the data center community.
Target Hospitality, which describes itself as one of North America’s largest providers of vertically integrated modular accommodations, noted that over $1 trillion in technology infrastructure investments have been announced since January 2025, potentially creating additional opportunities in this sector. With last twelve months EBITDA of $106.24 million, the company shows solid operational performance. Discover more detailed analysis and 12 additional key insights about Target Hospitality in the comprehensive InvestingPro Research Report.
In other recent news, Target Hospitality Corp reported its second-quarter earnings for 2025, surpassing revenue expectations. The company achieved a revenue of $62 million, exceeding the forecasted $59.43 million. However, the earnings per share (EPS) were slightly below expectations, coming in at -$0.1223 compared to the anticipated -$0.11. Despite the EPS miss, the revenue beat indicates strong performance in the quarter. These financial results have been closely watched by investors and analysts alike. The positive revenue outcome has been a focal point for those tracking the company’s financial health. Analysts have yet to publicly update their ratings following these earnings. These developments provide valuable insights into Target Hospitality’s recent financial performance.
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