Target Hospitality Corp. (NASDAQ:TH) reported fourth-quarter results on Wednesday that fell short of earnings expectations but topped revenue forecasts, while issuing a 2026 outlook that came in well above analyst projections.
The company’s shares jumped 6.52% in pre-market trading following the announcement, supported by its projected 2026 revenue range of $320 million to $350 million. This outlook significantly exceeds the analyst consensus estimate of $276 million, with the midpoint of $335 million representing roughly a 21% premium.
The company posted a fourth-quarter loss of $0.15 per share, wider than the consensus estimate of a $0.08 loss per share. Revenue for the quarter totaled $89.8 million, slightly above the $89.43 million analysts had expected and up 7% from $83.7 million reported in the same period a year earlier.
For the full year, revenue declined 17% year over year to $320.6 million from $386.3 million. The drop was largely attributed to the termination of the Pecos Children’s Center contract in February 2025.
“During 2025 we executed on a clear mandate to advance our strategic agenda—broadening our contract portfolio and accelerating expansion into high-growth end markets,” said Brad Archer, President and Chief Executive Officer.
Since February 2025, Target Hospitality has secured more than $740 million in multi-year contracts. These include a $129 million agreement for the West Texas Power Community and a $23 million contract for the Pecos Power Community. Both projects are tied to power generation and data center development and are expected to reactivate more than 2,850 existing accommodation beds.
The company forecasts adjusted EBITDA for 2026 in the range of $60 million to $70 million and capital expenditures between $65 million and $75 million.
Fourth-quarter adjusted EBITDA totaled $6.5 million, compared with $41.1 million in the prior-year quarter, reflecting higher operating costs and the absence of the previously held higher-margin government contract.
Target Hospitality ended 2025 with no net debt and approximately $183 million in total available liquidity.