Target Hospitality Corp (TH)
🔔 Watch stock
Target Hospitality rents out beds: 16,991 of them, in modular communities for oil crews, lithium miners, data center builders — and for a U.S. government contractor. Since March 2026 it has signed roughly $1.45 billion of new contracts, among them a $750 million community for AI infrastructure; counting the older deals, about $2.0 billion of contracted minimum revenue now sits on the books, and the stock is up 156 percent (data as of July 8, 2026). The catch is in the last big contract: it delivered 62 percent of 2023 revenue, ended in February 2025 — and what replaced it cut adjusted EBITDA by 85 percent and turned a $173.7 million profit into a $37.1 million loss. Not investment advice — just a careful look at what happens when you count the replacement instead of weighing it.
Appears in These Scanners
This stock currently matches 18 of our scanner strategies — each hit links to the scanner.
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. Scanners marked in red are red-flag signals (risk/short scanners) — appearing there is not a seal of approval. View all scanners
Basics
Performance
Valuation
Profitability
Balance Sheet & Safety
Growth
Quality & Screener
AI Rating
Sells AITarget Hospitality verkauft keine KI-Technologie, sondern Wohn- und Versorgungscamps — aber KI-getriebene Infrastruktur-Nachfrage ist laut den Berichten eine dokumentierte und inzwischen dominierende Umsatzquelle: Im Mai 2026 schloss das Unternehmen einen 48-Monats-Vertrag über mehr als 750 Mio. $ für eine „AI Infrastructure Community“ ab (mehr als das Doppelte des Konzernumsatzes 2025 von 320,6 Mio. $), dazu im März 2026 den Data Center Hub in Nordtexas (ca. 550 Mio. $) und die West Texas Power Community (ca. 129 Mio. $) zur Versorgung eines „hyperscale AI-driven data-center development“. Das Management beziffert den adressierbaren Markt inkl. „AI infrastructure“ auf rund 18 Mrd. $; die Risk Factors nennen die KI-Investitionen der Rechenzentrumsbetreiber ausdrücklich als Nachfragetreiber UND als konkretes Geschäftsrisiko, falls sie ausbleiben. Einstufung analog zum Picks-and-Shovels-Präzedenzfall AAOI: KI-Nachfrage als belegte Umsatzquelle schlägt (Vorrangregel) die Bedroht-Lesart. Kein Beleg für operativen KI-Einsatz im eigenen Betrieb.
View the full file — quotes, sources, reviewed filings
„In May 2026, the Company executed a 48-month contract, expected to generate more than $750 million of revenue for a workforce housing community supporting approximately 3,370 individuals with accommodations and customized hospitality solutions for AI infrastructure development (“AI Infrastructure Community” or “AI Infrastructure Contract”)."
Im Mai 2026 schloss das Unternehmen einen 48-monatigen Vertrag ab, der voraussichtlich mehr als 750 Mio. $ Umsatz erbringen wird, für eine Arbeiterunterkunfts-Siedlung für rund 3.370 Personen mit Unterbringung und maßgeschneiderten Hospitality-Lösungen für den Aufbau von KI-Infrastruktur („AI Infrastructure Community“ bzw. „AI Infrastructure Contract“).
„Management estimates the potential total addressable market opportunity for integrated workforce hospitality solutions supporting data center development, AI infrastructure, critical mineral development, and power generation projects to be approximately $18 billion."
Das Management schätzt den potenziellen adressierbaren Gesamtmarkt für integrierte Workforce-Hospitality-Lösungen zur Unterstützung von Rechenzentrums-Entwicklung, KI-Infrastruktur, Erschließung kritischer Mineralien und Kraftwerksprojekten auf rund 18 Mrd. $.
„Demand for our services is also sensitive to the capital spending on data center infrastructure to support artificial intelligence (“AI”) applications, which has seen rapid expansion in recent years. There is no assurance that such expansion will continue."
Die Nachfrage nach unseren Dienstleistungen reagiert zudem empfindlich auf die Investitionsausgaben für Rechenzentrums-Infrastruktur zur Unterstützung von Anwendungen der Künstlichen Intelligenz („KI“), die in den vergangenen Jahren rasant gewachsen sind. Es gibt keine Gewissheit, dass sich diese Expansion fortsetzt.
Filings Reviewed: 10-Q 2026-05-11 · 10-K 2026-03-11
Rated on July 16, 2026 · How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 0.12 | -65.50 | 84 | -33.70 | 14.90 | 31 | 30 |
| 2025: Q1 | -0.07 | -132.70 | 70 | -34.50 | -9.20 | 4 | -13 |
| 2025: Q2 | -0.15 | -182.70 | 62 | -38.80 | -24.20 | 11 | 28 |
| 2025: Q3 | -0.01 | -104.00 | 99 | 4.40 | -0.80 | 53 | 37 |
| 2025: Q4 | -0.15 | -219.90 | 90 | 7.30 | -16.60 | 6 | -12 |
| 2026: Q1 | -0.13 | – | 73 | 4.10 | -17.80 | 7 | 7 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Assessment: Opportunities & Risks
A vertically integrated network of 16,991 beds in places where no hotel would ever pencil out — modular, relocatable and interchangeable across segments, with customers on multi-year contracts carrying minimum revenue amounts. By the company's account the only provider with the scale and regional density to serve all of its customers' needs in its key regions (annual report 10-K 2025).
Revenue fell 43 percent from 2023 to $320.6 million (2025) — but adjusted EBITDA fell 85 percent to $53.2 million and net income swung from plus $173.7 million to a $37.1 million loss. The annual report names the cause itself: high-margin PCC lease revenue was replaced by low-margin construction services revenue. Q1 2026 repeated the pattern: revenue plus 4.1 percent, gross profit down from $18.0 million to $6.9 million.
About $2.0 billion of contracted minimum revenue against $320.6 million of 2025 revenue — including the AI Infrastructure Community (more than $750 million over 48 months, signed May 2026) and the Data Center Hub in North Texas (about $550 million, options to January 2035). Signed with terms and bed counts in the filings, and this time protected: the AI contract carries termination fees compensating invested capital — the protection the PCC contract lacked. Caveat: spread over four to five years, that is roughly $400–500 million a year, not a fivefold company.
Two government agreements ended inside twelve months (STFRC 08/09/2024; PCC 02/21/2025, three months after an option was exercised). The DIPC contract — over $246 million to March 2030 — is subject to annual U.S. government appropriations and cancellable for convenience on 60 days' notice. Concentration persists: three customers at 28/11/11 percent, top five about 63 percent of 2025 revenue, with new exposure to a concentrated group of hyperscale technology customers.
Deliberately cleaned up first: $181.4 million of 10.75 percent notes redeemed in March 2025 (about $19.5 million of annual interest saved), Altman Z-score of 6.66 in the safe zone. But the build is re-levering it: $30 million drawn on the revolver in Q1 2026, $45.5 million of capex in three months, and $200–210 million more required for the AI community (about 95 percent in 2026) against $5.5 million of cash and $145 million of undrawn capacity — with the filing stating it "cannot assure" financing on commercially reasonable terms and naming equity issuance as an option.
About $1.70 billion of market value equals roughly 5.3 times 2025 revenue and about 32 times 2025 adjusted EBITDA (July 16, 2026) — a growth multiple on trough earnings, after plus 156.2 percent year to date and within about 3 percent of the 52-week high. Our scanner's 17 hits are almost exclusively momentum lists (RS 96, stage 2) against a fundamental grade of D, an EPS rating of 12 and a Piotroski score of 4 of 9 (data as of July 8, 2026). And the best-informed holder sold: TDR Capital placed 8,050,000 shares at $14.00 in April 2026, weeks before the $750 million AI contract was announced.
Target Hospitality lost the customer that was 62 percent of its 2023 revenue — and has since signed about $2.0 billion of contracted minimum revenue, including a $750 million community for AI infrastructure and a $550 million data center hub. The order book is real and, unlike the lost contract, protected by termination fees. The catch is what the last replacement was worth: revenue minus 43 percent but adjusted EBITDA minus 85 percent, a $173.7 million profit turned into a $37.1 million loss, because high-margin lease income gave way to low-margin construction work — and the new contracts start in that same front end, with $200–210 million of capital going out first against $5.5 million of cash. At about 32 times trough earnings the market has already booked the good margin. Not investment advice.
- TH reached our research list via the Reddit hype scanner (ApeWisdom, 4 mentions in 24 hours, as of July 16, 2026) — notable mainly for the silence: a 156 percent rally running without forum hype. The 17 hits in our in-house stock scanner carry the July 8, 2026 data cut-off and rotate daily.
- Data discrepancy, disclosed for transparency: our scanner row carries a price of $20.20 and a market capitalization of $2.0 billion (cut-off July 8, 2026), while the quote on July 16, 2026 stands at $17.05 (about $1.70 billion on 99,585,466 shares). Valuation statements in the text use the July 16, 2026 figures; scanner metrics are dated to July 8, 2026. Where sources disagree, the SEC filings take precedence.
- Adjusted EBITDA is a non-GAAP measure defined by the company and reconciled in the annual report 10-K 2025; it is used here because management steers by it and it makes the margin shift visible. The Altman Z-score of 6.66 reflects the near-absence of debt after the March 2025 note redemption and should not be read as a profitability signal.
- The decisive contracts are not in the 2025 annual report: the AI Infrastructure Contract (more than $750 million, May 2026) appears only in Note 17 "Subsequent Events" of the quarterly report as of March 31, 2026 and is explicitly not reflected in those financial statements; the Data Center Hub, West Texas Power and Pecos Power contracts were signed in March 2026. Order-book figures are contracted minimum revenue over full initial terms of roughly four to five years — not annual revenue, and not booked earnings.
- Price and valuation figures are dated (about $17.05, market value roughly $1.70 billion, July 16, 2026); analyses are evergreen, daily prices are not a buy argument.
About the Company
Target Hospitality Corp. ist ein Spezialvermietungs- und Gastgewerbedienstleistungsunternehmen in Nordamerika.
| Employees | 902 |
|---|---|
| Headquarters | The Woodlands, TX |
| Website | targethospitality.com |
| IPO Date | 25. Jul 2013 |
| Next Earnings | 6. Aug 2026 |
Management
| Name | Title | Birth Year |
|---|---|---|
| James Bradley Archer | CEO, President & Non-Independent Director | 1971 |
| Jason Paul Vlacich | Chief Financial Officer | 1979 |
| Troy C. Schrenk | Executive VP of Operations & Chief Commercial Officer | 1975 |
| Heidi Diane Lewis J.D. | Executive VP, General Counsel & Secretary | 1973 |
| Brendan Dowhaniuk | Executive Vice President of Strategy & Corporate Development | 1989 |
| Cyril J. Hahamski | Chief Accounting Officer | – |
| Mark Schuck CPA | Senior Vice President of Investor Relations & Financial Planning | – |
| Scott John | Senior Vice President of Marketing & CX | – |
| Andrew A. Aberdale | Advisor | 1966 |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 20, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.