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Investing.com -- Target (NYSE:TGT) Hospitality Corp. (NASDAQ:TH) reported a wider-than-expected loss for the first quarter of 2025, as revenue declined YoY due to contract terminations in its government segment. However, the company reaffirmed its full-year guidance and highlighted progress on new contracts.
Target Hospitality posted a net loss of $6.5 million, or $0.07 per share, for Q1 2025, compared to net income of $20.4 million, or $0.20 per share, in the same period last year. The Q1 loss of $0.07 per share was wider than analysts’ estimates of a $0.01 per share loss.
Revenue fell 34.5% YoY to $69.9 million, slightly below the consensus estimate of $70 million. The company attributed the decline primarily to the termination of contracts in its government segment, including the Pecos Children’s Center Contract and South Texas Family Residential Center Contract.
Despite the Q1 shortfall, Target Hospitality reaffirmed its full-year 2025 outlook, projecting revenue between $265 million and $285 million. This guidance range encompasses the analyst consensus of $273 million.
"We delivered a strong first quarter marked by sound business fundamentals and continued momentum executing on recent contract wins," said Brad Archer, President and CEO of Target Hospitality.
The company highlighted progress on new contracts, including a multi-year $140 million Workforce Hub Contract and a 5-year $246 million contract to reactivate assets in Dilley, Texas supporting U.S. government initiatives.
Target Hospitality’s stock edged up 0.7% following the earnings release, suggesting investors were largely neutral on the mixed results and maintained outlook.
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