Target Hospitality Announces Pecos Children’s Center Contract Extension, Reaffirms 2024 Financial Outlook and Enhances Strategic Capabilities

THE WOODLANDS, Texas, Nov. 18, 2024 /PRNewswire/ — Target Hospitality (NASDAQ:) Corp. (“Target (NYSE:) Hospitality“, “Target” or the “Company”) (NASDAQ: TH), one of North America’s largest providers of vertically integrated modular accommodations and value-added hospitality services, today announced the extension and amendment of the Company’s Pecos Children’s Center (“PCC”) contract, reaffirmed its previously announced 2024 financial outlook and enhanced its strategic capabilities.  

Since 2021, PCC has served as a cornerstone to the U.S. government’s critical domestic humanitarian aid mission.   The essential nature of this community supported a seamless PCC annual contract extension, representing the community’s fifth year of continuous operations and further illustrating the importance of this humanitarian solution.  

The PCC contract extension and amendment (“PCC Contract”), effective November 16, 2024, supports a community capable of serving up to 6,000 individuals and will represent annual minimum lease revenue of approximately $168 million.   The PCC Contract continues to provide for additional occupancy based variable services revenue depending on active community population.   However, given the dynamic fluctuations in community population, Target believes it prudent to continue excluding any incremental PCC variable revenue from its 2024 outlook.  

Target’s contract portfolio, including the PCC Contract, supports a high degree of revenue visibility, strong cash generation and an optimized balance sheet.   These strong business fundamentals support the Company’s reaffirmed 2024 financial outlook.

In addition, the Company has taken intentional steps to enhance its strategic capabilities as it pursues an expanding pipeline of government services growth opportunities.  Specifically, the Company has engaged Carla L. Provost, a former Chief of the United States Border Patrol under the previous Trump administration, to serve as a strategic advisor and government liaison.  With over 25 years of service in the U.S. Border Patrol, the Company believes Ms. Provost’s knowledge and experience will provide valuable insight as Target actively evaluates multiple government focused strategic growth initiatives.

About Target Hospitality

Target Hospitality is one of North America’s largest providers of vertically integrated modular accommodations and value-added hospitality services in the United States. Target builds, owns and operates a…