Target Hospitality Provides Update on Pecos Children's Center Contract

Core Viewpoint - Target Hospitality Corp. is facing the termination of its services agreement with the Pecos Children's Center, which will impact its financial outlook and operational strategy [1][5]. Group 1: Contract Termination - The U.S. government intends to terminate the existing services agreement with Target's nonprofit partner, effective around February 21, 2025 [1]. - The Pecos Children's Center services agreement allowed Target to provide facility and hospitality solutions capable of supporting up to 6,000 individuals [2]. - The nonprofit partner has formally notified Target of its intention to terminate the contract for convenience [2]. Group 2: Asset Management - Target will retain ownership of its modular assets, allowing the company to continue utilizing these solutions for customer demand across existing segments and potential growth opportunities [3]. - The company is actively re-marketing these assets and exploring a strong pipeline of growth opportunities, particularly in relation to U.S. government immigration policies [4]. Group 3: Financial Outlook - Due to the termination notice, Target is withdrawing its previously issued preliminary financial outlook for 2025 [5]. - The company plans to provide operational and financial updates reflecting the impact of the contract termination in the near term [5].