Target Hospitality Corp. reported its first-quarter 2025 financial results, with total revenue of $69.9 million, a decrease from $106.7 million in the first quarter of 2024. The company recorded a net loss of $6.5 million, compared to a net income of $20.4 million in the prior-year period, resulting in a diluted loss per share of $0.07.
Adjusted EBITDA for the quarter was $21.6 million, down from $53.7 million in Q1 2024. These declines were primarily driven by the termination of the Pecos Children's Center (PCC) contract, effective February 21, 2025, and the South Texas Family Residential Center (STFRC) contract, effective August 9, 2024. These negative impacts were partially offset by the new Dilley Contract, effective March 5, 2025, and growth in the All Other category due to the Workforce Hub Contract.
The company reiterated its full-year 2025 financial outlook, projecting total revenue between $265 million and $285 million and Adjusted EBITDA between $47 million and $57 million. Target Hospitality also confirmed the redemption of its $181.4 million Senior Notes on March 25, 2025, which is expected to generate approximately $19.5 million in annual interest expense savings. As of March 31, 2025, the company maintained a net leverage ratio of 0.1 times, with $169 million in total available liquidity.
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