Target Hospitality Q1 Net Loss $(0.13)/Share; Secures $550M Data Center Contract
Target Hospitality Corp. reported a net loss of $12.9 million, or $(0.13) per share, for the first quarter ended March 31, 2026, a significant increase from the $6.5 million net loss, or $(0.07) per share, in the prior year. Despite the wider loss, total revenue grew 4.1% to $72.8 million, primarily driven by a surge in construction fee income and specialty rental income. Strategically, the company secured substantial new multi-year contracts, including a $550 million Data Center Hub Contract, a $129 million West Texas Power Community agreement, and a $23 million Pecos Power Community agreement, all bolstering its Workforce Hospitality Solutions (WHS) segment. The company also drew $30 million on its ABL Facility to fund WHS segment growth.
Key Highlights
- Secured $550M Data Center Hub Contract over 5 years, with 2x 2-year extension options.
- Signed $129M West Texas Power Community contract for 47 months, supporting 1,400 individuals.
- Entered $23M Pecos Power Community agreement for 26 months, 400 rooms/night.
- Q1 2026 net loss widened to $12.9 million, or $(0.13) per share.
- Total revenue increased 4.1% to $72.8 million in Q1 2026.
- Construction fee income surged to $9.7 million in Q1 2026 from $4.8 million.
- Drew $30 million on ABL Facility to fund WHS segment growth.
- Net cash provided by operating activities increased to $7.0 million.