Target Hospitality Corp. is a publicly traded specialty business services company headquartered in The Woodlands, Texas, and listed on the Nasdaq Capital Market under the symbol TH. Founded in 1978, the company has developed a vertically integrated operating model focused on temporary and remote accommodation rather than conventional hotels. Its ...Target Hospitality Corp. is a publicly traded specialty business services company headquartered in The Woodlands, Texas, and listed on the Nasdaq Capital Market under the symbol TH. Founded in 1978, the company has developed a vertically integrated operating model focused on temporary and remote accommodation rather than conventional hotels. Its facilities are designed for customers that need dependable housing and hospitality infrastructure near worksites, government operations, energy projects, and other locations where traditional housing is limited, expensive, or impractical.
The company operates a network of approximately 15,528 beds across 27 communities. According to the supplied company information, 26 communities are owned directly, one is leased, and another is managed without being owned or leased. This ownership and operating structure gives Target Hospitality control over facility design, construction or deployment, maintenance, food operations, staffing, and the customer experience. Its business is organized across Hospitality & Facilities Services in the South, Hospitality & Facilities Services in the Midwest, Government, and TCPL Keystone.
Target Hospitality’s product and service offering extends well beyond rooms. It provides modular workforce lodging, dining halls and catering, housekeeping, laundry, grounds maintenance, security, recreational programs, concierge functions, health-related support, and community administration. These bundled services can reduce the need for customers to coordinate multiple vendors and can make remote project deployment more predictable. The company emphasizes customized, cost-effective solutions, with pricing and economics generally influenced by bed capacity, occupancy, contract duration, service intensity, transportation and labor requirements, food costs, utilities, maintenance, and capital investment in facilities.
Its customer base includes the U.S. government and government contractors, high-grade natural-resource developers, and energy-infrastructure companies. Government contracts can provide large-scale demand and operational visibility, while commercial business can be more sensitive to commodity cycles, drilling activity, project timing, and regional workforce requirements. The company therefore combines recurring or contracted service revenue with exposure to changing industrial and public-sector needs.
The supplied financial snapshot reports approximately 902 full-time employees, placing Target Hospitality in the 501-1000 employee category. The company is led by James Bradley Archer, commonly known as Brad Archer, who joined the business in 2009 as chief operating officer and became chief executive officer in 2014. The latest supplied trailing-twelve-month data shows revenue per share of approximately $3.24, positive operating cash flow and free cash flow, but negative net income and profitability ratios. Reported metrics include an EBITDA margin of approximately 13.7%, a net profit margin of approximately negative 13.5%, and free cash flow of roughly $46.2 million to equity. The company’s future performance is likely to depend on contract renewals, occupancy, government demand, industrial activity, operating efficiency, labor and food costs, capital allocation, and the ability to maintain differentiated remote-community infrastructure.
Operator: Good morning, ladies and gentlemen, and welcome to the Target Hospitality Second Quarter 2026 Earnings Conference Call. [Operator Instructions] This call is being recorded on Monday, August 10, 2026. I would now like to turn the conference over to Mark Schuck, Senior Vice President of Finance and Investor Relations. Please go ahead.
Mark Schuck: Thank you. Good morning, everyone, and welcome to Target Hospitality's Second Quarter 2026 Earnings Call. The press release we issued this morning, outlining our second quarter results, is available in the Investors section of our website. In addition, a replay of this call will be archived on our website for a limited time. Please note the cautionary language regarding forward-looking statements contained in the press release. This same language applies to statements made on today's conference call. This call will contain time-sensitive information as well as forward-looking statements, which are only accurate as of today, August 10, 2026. Target Hospitality expressly disclaims any obligation to update or amend the information contained in this conference call to reflect events or circumstances that may arise after today's date, except as required by applicable law. For a complete list of risks and uncertainties that may affect future performance, please refer to Target Hospitality's periodic filings with the SEC. We will discuss non-GAAP financial measures on today's call. Please refer to the tables in our earnings release posted in the Investors section of our website to find a reconciliation of non-GAAP financial measures referenced in today's call and their corresponding GAAP measures. Leading the call today will be Brad Archer, President and Chief Executive Officer; followed by Jason Vlacich, Chief Financial Officer. After their prepared remarks, we will open the call for questions. I'll now turn the call over to our Chief Executive Officer, Brad Archer.
James Archer: Thanks, Mark. Good morning, everyone, and thank you for joining us on the call today. We delivered a strong second quarter, defined by disciplined execution on recent WHS contract awards and continued advancement of our growth pipeline. Our focus on converting commercial wins into operating results underscores the momentum driving Target's performance. Since January 2026, we have secured over 9,000 contracted beds, representing more than $1.4 billion of multiyear contracts, supporting unprecedented growth in our WHS segment and reinforcing Target's role as a leading provider of essential mission-critical solutions for AI-driven data center development and critical power generation expansion. That commercial momentum is translating directly into operational execution with average WHS utilized beds surpassing 4,000 during the second quarter. We are delivering on recent contract wins while our Target Hyper/Scale platform improving operating capabilities support accelerating customer demand. We continue to see expanding …
