Target Hospitality Provides Update on Pecos Children's Center Contract

Core Viewpoint - The U.S. government intends to terminate the Pecos Children's Center services agreement with Target Hospitality's nonprofit partner, effective around February 21, 2025, impacting the company's operations and financial outlook [1][2][5]. Group 1: Contract Termination - The Pecos Children's Center services agreement (PCC Contract) provided facility and hospitality solutions for up to 6,000 individuals, and the nonprofit partner has notified Target of its intention to terminate this contract [2]. - The termination of the PCC Contract allows the company to retain ownership of its modular assets, which can still be utilized for other customer demands and growth opportunities [3]. Group 2: Growth Opportunities - Target Hospitality is actively re-marketing its modular assets and exploring a pipeline of growth opportunities, particularly in relation to U.S. government immigration policies [4]. - The company plans to provide operational and financial updates in light of the contract termination, indicating a shift in its financial outlook for 2025 [5]. Group 3: Company Overview - Target Hospitality is one of North America's largest providers of vertically integrated modular accommodations and hospitality services, offering a range of value-added solutions including food service management and logistics [6].