Target Hospitality Corp.

Second quarter total revenue was approximately $86 million and adjusted EBITDA was approximately $18 million. WHS revenue was approximately $36 million, up 142% year over year; HFS-South revenue was approximately $33 million; Government revenue was approximately $13 million. Average WHS utilized beds surpassed 4,000 in the quarter. Year-to-date cash flow from operating activities exceeded $110 million, including more than $100 million of customer advance payments. The company ended the quarter with approximately $141 million in total available liquidity and a net leverage ratio of 0.6x. Full-year 2026 guidance was raised to total revenue of $410 million-$420 million, adjusted EBITDA of $85 million-$95 million, and capital spending of $490 million-$510 million excluding acquisitions. Management said the WHS segment is expected to be Target's largest segment for full-year 2026 and to contribute more than 50% of consolidated revenues based on the current contracted portfolio. They also said 2027 exit targets are annualized revenue above $700 million and adjusted EBITDA above $260 million, with net leverage expected to exit 2027 well below 3x.

Brad Archer struck a strongly upbeat tone, emphasizing that the quarter reflected disciplined execution, commercial momentum, and a growing role in AI data center and power-generation infrastructure. He highlighted more than 9,000 contracted beds and over $1.4 billion of multiyear contracts since January, plus a pipeline above 20,000 beds. He repeatedly stressed that customers are expanding scope and that the company is finalizing multiple definitive agreements, suggesting confidence in more contract awards in coming quarters.

Jason Vlacich focused on the earnings bridge, cash generation, and capital deployment. He said Q2 revenue was approximately $86 million, adjusted EBITDA about $18 million, and year-to-date operating cash flow exceeded $110 million, including more than $100 million of customer advance payments. He noted about $132 million of Q2 capex, approximately $141 million of liquidity, net leverage of 0.6x, and the new $660 million credit facility that replaced the prior $175 million revolver. He also said 2026 guidance was raised to $410 million-$420 million of revenue, $85 million-$95 million of adjusted EBITDA, and $490 million-$510 million of capex, with some temporary pressure from $5 million-$7 million of Government-segment transition costs over the next two quarters.

Analysts pressed on what specifically drove the guidance raise, and management said it came from community enhancements, scope expansions from multiple customers, better visibility, continued execution, and faster-than-expected operating efficiencies. They also asked about the Dilley asset; management declined to comment on any monetization but said the Government segment is tied to a contract expected to run through 2030 and that capital is being directed primarily toward WHS. On the pipeline, management said the number of bids and geographies are expanding, competition exists but is not as intense as some might think, and timing from negotiation to signature is roughly unchanged even as the number of discussions has increased.