Target Hospitality Corp. (TH)

Price$18.41Cached quoteAs of 2026-10-10 12:24 UTC

AI: Fair-priced

Price checkThe valuation looks balanced: strong contracted growth is offset by demanding execution and funding expectations.

Target Hospitality Corp., listed on the Nasdaq Capital Market as TH, has an equity value of roughly $1.9 billion using the August 6 share count. Adjusted EBITDA, a profit measure before interest, taxes, depreciation and selected items, is guided to $105-$115 million for 2026, but management targets an annualized level above $300 million exiting 2027. Because that later figure is a run-rate rather than full-year earnings and requires major project execution, the current valuation looks neither obviously cheap nor excessive.

Big pictureAI infrastructure contracts are reshaping the business, while legacy energy exposure still adds cyclicality.

Workforce Hospitality Solutions is becoming the growth engine after more than $1.7 billion of multi-year awards since January 2026, including data-center and power projects. Contracted minimums, advance payments and take-or-pay features can make revenue steadier than traditional lodging demand. Still, HFS-South utilization fell year over year in Q2, commodity prices indirectly affect customer activity, and two customers represented 33% of first-half revenue combined. Diversification is improving, but project delays, cancellations and customer concentration remain meaningful risks.

Business strengthCash generation improved sharply, but heavy growth spending makes liquidity and debt discipline especially important.

First-half operating cash flow rose to $111 million from $15 million, helped materially by customer collections and advance payments. At June 30, cash was about $6 million, total debt was about $45 million and net leverage was 0.6 times. The new $660 million asset-based revolver, a borrowing line secured by assets, extends to July 2031 and lowers borrowing spreads. However, planned 2026 capital spending is $490-$510 million, so cash durability depends on contracted projects becoming service cash flows before debt usage climbs too far.

What could change the storyExecution, customer commitments, financing choices, and shareholder sales will decide whether upside survives the buildout.

The bull case assumes data-center and power contracts ramp on schedule, margins improve, capital spending peaks, assets redeploy efficiently and the targeted 2027 exit run-rate is achieved. The bear case is delayed or cancelled projects, weaker legacy energy demand and heavier revolver usage, which would raise interest costs and enterprise value. The September secondary sale by TDR-controlled holders is not direct dilution because Target is not issuing shares; the planned $30 million repurchase would reduce shares, but uses cash and borrowings during an investment-heavy period.

AI: News

Secondary sale and buybackTDR-controlled holders priced a large secondary sale, while Target paired it with a planned company repurchase.

On September 8, selling stockholders priced 14 million shares, with about $259 million of gross proceeds going to them, not Target. Target agreed to repurchase about $30 million of shares from the underwriters, funded with cash and ABL borrowings, if the offering closes on September 10. Because the company is not issuing shares, the sale itself is not dilutive; the repurchase would reduce outstanding shares. The trade-off is greater use of liquidity during a capital-spending-heavy buildout.

Hyperscaler contract expandsA new West Texas data-center contract added revenue visibility and lifted management's 2026 outlook again.

On August 26, Target announced a multi-year agreement expected to generate about $250 million of revenue through August 2030 for a top-five hyperscaler's West Texas project. The company plans to reuse underutilized assets and spend less than $15 million on modifications, which improves capital efficiency. Target then raised 2026 guidance to $435-$445 million of revenue and $105-$115 million of adjusted EBITDA, and lifted its exiting-2027 annualized targets above $750 million of revenue and $300 million of adjusted EBITDA.

Q2 growth acceleratesRevenue and adjusted EBITDA improved sharply as newer workforce-hospitality communities moved further through their ramp-up phases.

On August 10, Target reported second-quarter revenue of $85.5 million, up 39% year over year, and adjusted EBITDA of $18.2 million versus $3.5 million a year earlier, although it still recorded a $9.0 million net loss. First-half operating cash flow reached $111 million, helped partly by customer advance payments. Workforce Hospitality Solutions drove the improvement, while lower HFS-South utilization showed that legacy energy-linked operations can still soften even as the new portfolio grows.

Credit capacity expandsTarget replaced its smaller revolver with a much larger facility to fund contracted growth projects.

On July 27, Target announced a new $660 million asset-based revolving credit facility replacing its $175 million prior facility. The five-year line matures in July 2031 and includes an accordion that could raise commitments to $850 million, subject to conditions. Borrowing costs are Term SOFR plus 2.25%-3.00%, up to 250 basis points below the old facility. The refinancing eases near-term liquidity constraints, but the larger borrowing capacity also means leverage could rise if project spending runs ahead of operating cash flow.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017
Revenue	$274.8M	$265.9M	$365.6M	$333.7M	$214.4M	$172.2M	$261.3M	$186.9M	$75.4M
Gross profit	$42.7M	$178.2M	$313.3M	$247.1M	$101.3M	$57.2M	$147.0M	$90.2M	$53.0M
Gross margin	15.52%	67.01%	85.69%	74.06%	47.27%	33.19%	56.27%	48.29%	70.33%
Operating expenses	$77.4M	$69.4M	$72.7M	$72.8M	$64.3M	$53.1M	$99.0M	$49.3M	$31.6M
Operating income	−$34.7M	$108.8M	$240.6M	$174.4M	$37.1M	$4.1M	$48.0M	$40.9M	$21.5M
Operating margin	−12.64%	40.91%	65.81%	52.25%	17.30%	2.38%	18.36%	21.89%	28.45%
EBITDA	$38.6M	$181.6M	$324.6M	$242.0M	$107.6M	$69.7M	$106.9M	$80.0M	$51.6M
EBITDA margin	14.06%	68.29%	88.77%	72.53%	50.19%	40.48%	40.90%	42.83%	68.42%
Net income	−$37.1M	$71.3M	$173.7M	$73.9M	−$4.6M	−$25.1M	$12.0M	$5.0M	$981,000
Net profit margin	−13.51%	26.80%	47.51%	22.16%	−2.13%	−14.59%	4.58%	2.65%	1.30%
Basic EPSper basic share	-$0.37	$0.71	$1.71	$0.76	-$0.05	-$0.26	$0.13	$0.12	$0.04
Diluted EPSper diluted share	-$0.37	$0.70	$1.56	$0.74	-$0.05	-$0.26	$0.13	$0.12	$0.04

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈45.85%of listed shares

DALE MANJIT / MFA Holding S.a.r.l. / Arrow Holdings S.a.r.l. / Sapphire Holding S.a r.l. / TDR Capital II Investments LP / Mitchell Thomas Andrew / MFA Limited Partnership SLP / TDR Capital LLP / Lindsay Gary / MFA Global S.a.r.l.45.98M shares · Jun 18, 2026

View holders

Top 20 reported holders of TH
Holder	% owned
DALE MANJIT / MFA Holding S.a.r.l. / Arrow Holdings S.a.r.l. / Sapphire Holding S.a r.l. / TDR Capital II Investments LP / Mitchell Thomas Andrew / MFA Limited Partnership SLP / TDR Capital LLP / Lindsay Gary / MFA Global S.a.r.l.	≈45.85%45.98M shares
Private Capital Management, LLC	3.25%3.26M shares
BlackRock, Inc.	3.15%3.16M shares
Ophir Asset Management Pty Ltd	2.68%2.69M shares
Rubric Capital Management LP	2.58%2.59M shares
WESTFIELD CAPITAL MANAGEMENT CO LP	2.10%2.1M shares
COOPER CREEK PARTNERS MANAGEMENT LLC	2.05%2.05M shares
HighTower Advisors, LLC	1.84%1.84M shares
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	1.84%1.84M shares
Driehaus Capital Management LLC	1.68%1.68M shares
VANGUARD CAPITAL MANAGEMENT LLC	1.52%1.53M shares
Robertson Stephen	≈1.51%1.52M shares
Senator Investment Group LP	1.40%1.4M shares
AMERICAN CENTURY COMPANIES INC	1.36%1.36M shares
DIMENSIONAL FUND ADVISORS LP	1.33%1.34M shares
Point72 Asset Management, L.P.	1.19%1.19M shares
GEODE CAPITAL MANAGEMENT, LLC	1.02%1.03M shares
JENNISON ASSOCIATES LLC	0.94%938.27K shares
71 West Capital Partners	0.90%907.32K shares
RENAISSANCE TECHNOLOGIES LLC	0.88%885.04K shares

Percentages use 100.29M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys2$1.99M disclosed value

Sells (SEC code S)6$834.7K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jan 20, 2026Form 4 · 10b5-1	Lewis Heidi DianeEVP, General Counsel & Sec	SellCommon Stock, par value $0.0001 per share	9.0K	$7.34	$66.1K	131.7K
Dec 15, 2025Form 4 · 10b5-1	Lewis Heidi DianeEVP, General Counsel & Sec	SellCommon Stock, par value $0.0001 per share	13.5K	$8.50	$114.4K	140.7K
Dec 3, 2025Form 4	Robertson StephenDirector	BuyCommon Stock, par value $0.0001 per share	125.0K	$7.94	$992.5K	445.0K
Nov 17, 2025Form 4 · 10b5-1	Lewis Heidi DianeEVP, General Counsel & Sec	SellCommon Stock, par value $0.0001 per share	9.0K	$6.70	$60.3K	154.2K
Nov 17, 2025Form 4	Robertson StephenDirector	BuyCommon Stock, par value $0.0001 per share	145.0K	$6.85	$993.3K	320.0K

Review ownership filings at SEC.gov ↗

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Target Hospitality Corp. (TH)

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