Target Hospitality(TH) - 2025 Q3 - Quarterly Results

Financial Performance - Revenue for Q3 2025 was $99.4 million, a 3% increase from $95.2 million in Q3 2024[8] - Net loss for Q3 2025 was $0.8 million, compared to a net income of $20.1 million in Q3 2024[10] - Adjusted EBITDA for Q3 2025 was $21.5 million, down from $49.7 million in Q3 2024[10] - Total revenue for Q3 2025 was $99.355 million, a 2.2% increase from $95.191 million in Q3 2024[48] - Services income decreased to $56.010 million in Q3 2025 from $65.796 million in Q3 2024, representing a decline of 14.0%[48] - Specialty rental income fell significantly to $7.784 million in Q3 2025 from $29.395 million in Q3 2024, a decrease of 73.5%[48] - Gross profit for Q3 2025 was $17.945 million, down 60.3% from $45.210 million in Q3 2024[48] - Operating income for Q3 2025 was $69, compared to $27.991 million in Q3 2024, indicating a substantial decline[48] - Net loss attributable to Target Hospitality Corp. common stockholders was $0.795 million in Q3 2025, compared to a net income of $19.994 million in Q3 2024[48] - Comprehensive loss for Q3 2025 was $0.783 million, compared to a comprehensive income of $20.082 million in Q3 2024[48] - Net income for the nine months ended September 30, 2025, was a loss of $22,134 million, compared to a profit of $58,863 million for the same period in 2024[52] - Adjusted gross profit for the three months ended September 30, 2025, was $32,316 million, down from $59,267 million in the same period of 2024, reflecting a decrease of approximately 45.5%[54] - EBITDA for the nine months ended September 30, 2025, was $143,992 million, compared to $35,851 million for the same period in 2024, indicating a significant increase[55] Liquidity and Cash Flow - The company had approximately $205 million in total available liquidity and zero net debt as of September 30, 2025[11] - Cash and cash equivalents decreased from $190,668 million at the beginning of the period to $30,387 million at the end of the period, a decline of approximately 84.0%[52] - Discretionary cash flows for the nine months ended September 30, 2025, were $61,345 million, down from $103,141 million in 2024, a decrease of about 40.6%[56] - The company reported net cash used in financing activities of $187,485 million for the nine months ended September 30, 2025, compared to $23,879 million in 2024, indicating a significant increase in cash outflows[56] - Cash flows from operating activities for the nine months ended September 30, 2025, were $68,357 million, down from $121,123 million in 2024, reflecting a decrease of approximately 43.6%[52] Contracts and Revenue Projections - The company secured over $455 million in multi-year contracts in 2025, including a $246 million contract for the Dilley project[3][20] - The Workforce Hub Contract is expected to generate approximately $166 million in revenue through 2027, reflecting a 19% increase from the original contract value[7][14] - The company anticipates total revenue for 2025 to be between $310 million and $320 million, with adjusted EBITDA between $50 million and $60 million[22] - The government segment revenue for Q3 2025 was $23.9 million, significantly down from $53.5 million in Q3 2024[21] Asset and Liability Changes - Total assets decreased from $725,774 million as of December 31, 2024, to $541,155 million as of September 30, 2025, representing a decline of approximately 25.4%[50] - Total liabilities decreased from $304,684 million as of December 31, 2024, to $138,909 million as of September 30, 2025, a reduction of approximately 54.5%[50] Other Financial Metrics - Average utilized beds decreased to 8,112 in Q3 2025, with a utilization rate of 49%, down from 81% in Q3 2024[8] - Interest expense for Q3 2025 was $0.458 million, a significant decrease from $3.813 million in Q3 2024[48] - The company incurred transaction expenses related to the Arrow Proposal and other business development activities, impacting financial results[41] - The company incurred depreciation of specialty rental assets amounting to $41,627 million for the nine months ended September 30, 2025, compared to $43,643 million in 2024[55]