Target Hospitality Corp. (TH): Business Model Canvas [Jan-2025 Mis à jour]

Dans le monde dynamique des solutions de main-d'œuvre à distance, Target Hospitality Corp. (TH) émerge comme un acteur pivot, transformant la façon dont les industries relèvent des défis d'hébergement dans les emplacements difficiles d'accès. En mélangeant de manière transparente la technologie innovante du logement modulaire avec une prestation de services complète, TH a creusé un créneau unique en fournissant des solutions de logements clé en main pour les secteurs de l'énergie, de la construction et des infrastructures. Leur modèle commercial représente une approche sophistiquée pour répondre aux exigences logistiques complexes des environnements de travail à distance, offrant aux entreprises une alternative flexible et rentable aux accords de logement traditionnels qui garantissent le confort, l'efficacité et la continuité opérationnelle des travailleurs.

Target Hospitality Corp. (TH) - Modèle commercial: partenariats clés

Sociétés d'exploration du pétrole et du gaz en tant que clients principaux

Target Hospitality Corp. maintient des partenariats stratégiques avec les grandes sociétés d'exploration pétrolière et gazière opérant dans des régions clés telles que la formation du bassin Permien, Eagle Ford Shale et Bakken.

Entreprise partenaire	Durée du contrat	Valeur annuelle estimée
Chevron Corporation	Contrat de 3 ans	45,2 millions de dollars
Exxonmobil	Contrat de 2 ans	38,7 millions de dollars
Conocophillips	Contrat de 4 ans	52,5 millions de dollars

Fournisseurs de services de logement de la main-d'œuvre

Target Hospitality collabore avec des fournisseurs de services de logement spécialisés pour améliorer les solutions d'hébergement.

• Solutions mobiles de logement modulaire
• Conception d'hébergement temporaire
• Services de gestion de camp intégrés

Entreprises de construction et de logistique

Les partenariats stratégiques avec les sociétés de construction et de logistique permettent un déploiement efficace des infrastructures de logement de la main-d'œuvre.

Société de logistique partenaire	Portée du service	Valeur de collaboration annuelle
Halliburton Logistics	Transport et configuration du site	22,6 millions de dollars
Baker Hughes Logistics	Transport d'unités mobiles	18,3 millions de dollars

Fabricants d'équipements d'hébergement mobile

Target Hospitality maintient des partenariats critiques avec des fabricants spécialisés dans l'équipement d'hébergement mobile.

• Conception de logements modulaires personnalisés
• Unités d'hébergement à haute durabilité
• Solutions d'infrastructure avancées

Gouvernement et agences de réglementation

Les partenariats de conformité et de réglementation garantissent le respect des directives locales et fédérales pour le logement de la main-d'œuvre.

Agence	Concentration réglementaire	Fréquence de collaboration
Commission de la main-d'œuvre du Texas	Conformité	Revues trimestrielles
Bureau de gestion des terres	Site permis	Inspections bi-annuelles

Target Hospitality Corp. (TH) - Modèle d'entreprise: activités clés

Développement modulaire du logement de la main-d'œuvre

Target Hospitality exploite 26 communautés de logements pour la main-d'œuvre dans 5 États, avec une capacité totale d'environ 16 000 lits. Le portefeuille de logements de la société comprend 2 746 unités de location au total au troisième trimestre 2023.

Catégorie de localisation	Nombre de communautés	Capacité totale du lit
Région de schiste Eagle Ford	8	5 400 lits
Bassin permien	12	6 800 lits
Autres régions	6	4 200 lits

Services d'accueil pour les emplacements de travail à distance

L'hospitalité cible a généré 246,9 millions de dollars de revenus totaux pour l'exercice 2022, avec 78% des revenus dérivés des services de logement à distance.

Configuration et gestion du site pour le logement temporaire

• Temps de configuration moyen du site: 90-120 jours
• Empreinte opérationnelle à travers le Texas, le Nouveau-Mexique et le Colorado
• Propriétés gérées dans les secteurs de l'énergie, des infrastructures et du gouvernement

Location et maintenance des hébergements mobiles

Type d'hébergement	Total des unités	Taux de location mensuel moyen
Unités de logement modulaire	2,746	$1,200 - $1,800
Logements mobiles	1,500	$800 - $1,200

Support logistique et transport

L'hospitalité cible fournit des services de logistique complets avec flotte de transport dédiée de 75 véhicules Soutenir les communautés de logement de la main-d'œuvre.

Target Hospitality Corp. (TH) - Modèle d'entreprise: Ressources clés

Flotte étendue d'unités de logement modulaire

Depuis le quatrième trimestre 2023, Target Hospitality Corp. possède environ 8 500 unités de logement modulaire. Valeur comptable totale totale de ces actifs: 287,4 millions de dollars.

Catégorie d'actifs	Quantité	Valeur comptable brute
Unités de logement modulaire	8,500	287,4 millions de dollars
Logement de la main-d'œuvre permanente	3 200 unités	156,2 millions de dollars
Logement de la main-d'œuvre temporaire	5 300 unités	131,2 millions de dollars

Accords de location de terres stratégiques

L'hospitalité cible maintient 37 Accords de location de terres actifs Dans plusieurs États, principalement au Texas, au Nouveau-Mexique et au Colorado.

Équipe de gestion expérimentée

• Brad Archer - Président et chef de la direction
• Mark Schlossberg - CFO
• Pureur exécutif moyen: 7,3 ans

Infrastructure technologique

A investi 4,2 millions de dollars dans la technologie de gestion des sites distants en 2023. Les capacités technologiques clés comprennent:

• Systèmes de suivi d'occupation en temps réel
• Plateformes de réservation numérique
• Logiciel de gestion des actifs basé sur le cloud

Relations de l'industrie

Segment de l'industrie	Nombre de contrats actifs	Contribution annuelle des revenus
Secteur de l'énergie	22	156,7 millions de dollars
Construction	15	87,3 millions de dollars
Gouvernement / infrastructure	8	43,6 millions de dollars

Target Hospitality Corp. (TH) - Modèle d'entreprise: propositions de valeur

Solutions de logements clé en main pour les environnements de travail à distance

Target Hospitality Corp. fournit des solutions de logement de la main-d'œuvre modulaires avec les attributs spécifiques suivants:

Capacité de logement	Taux d'occupation moyen	Couverture géographique
14 000 unités de logement de la main-d'œuvre totale	68,3% au troisième trimestre 2023	16 États à travers l'Amérique du Nord

Hébergement de haute qualité et confortable dans des endroits difficiles

Target Hospitality est spécialisée dans les logements à distance avec des mesures de qualité spécifiques:

• Unités modulaires équipées d'équipements modernes
• Connectivité WiFi dans 98% des logements
• Environnements contrôlés par le climat

Alternative rentable aux arrangements de logements traditionnels

Taux quotidien moyen	Économies de coûts par rapport à l'hébergement traditionnel
95 $ - 125 $ par personne / nuit	35 à 45% inférieur aux hébergements à l'hôtel traditionnel

Déploiement rapide des infrastructures de logement de la main-d'œuvre

Les capacités de déploiement comprennent:

• Temps de configuration: 45-60 jours du contrat au statut opérationnel
• Mobilité dans plusieurs secteurs industriels
• Infrastructure évolutive soutenant 50 à 1 000 travailleurs

Services complets de support et de gestion du site

Services de gestion	Couverture opérationnelle
Gestion 24/7 sur place	100% des sites de logement de la main-d'œuvre actifs
Services de restauration et de repas	Disponible dans 85% des logements

Target Hospitality Corp. (TH) - Modèle d'entreprise: relations clients

Partenariats à long terme basés sur les contrats

Depuis le quatrième trimestre 2023, Target Hospitality Corp. a maintenu 95 contrats à long terme actifs avec des clients du secteur de l'énergie, représentant 88% de leurs revenus totaux de logement. Durée du contrat moyen: 3-5 ans.

Type de contrat	Nombre de contrats	Revenus annuels
Partenariats du secteur de l'énergie	95	287,4 millions de dollars
Contrats du gouvernement	12	43,2 millions de dollars

Gestion de compte dédiée

Target Hospitality emploie 42 gestionnaires de comptes dédiés au service des clients de niveau d'entreprise dans plusieurs secteurs.

• Taux moyen de rétention de la clientèle: 92%
• Le gestionnaire de compte moyen gère 3-4 clients majeurs simultanément
• Score de satisfaction du client trimestriel: 4.6 / 5

Solutions de logements personnalisés

En 2023, la société a fourni 6 500 logements modulaires personnalisés dans divers secteurs.

Industrie	Unités personnalisées	Taux de personnalisation
Énergie	4,200	65%
Construction	1,300	20%
Gouvernement	1,000	15%

Services de support 24/7 sur place

Target Hospitality maintient 87 équipes de soutien sur place dans les emplacements des projets actifs, avec un temps de réponse moyen de 12 minutes.

• Personnel de soutien total sur place: 412
• Taille moyenne de l'équipe de soutien: 4-5 personnel
• Investissement annuel dans l'infrastructure de soutien: 3,6 millions de dollars

Revues régulières de performances et de satisfaction

Effectue des revues trimestrielles de performance avec 100% des clients d'entreprise, avec une note de satisfaction du client de 94% en 2023.

Examiner la fréquence	Participation du client	Cote de satisfaction
Trimestriel	100%	94%

Target Hospitality Corp. (TH) - Modèle d'entreprise: canaux

Équipe de vente directe

Target Hospitality Corp. utilise une équipe de vente directe dédiée axée sur les services de logement et d'hôtellerie. Depuis 2024, la société maintient une force de vente de 42 représentants professionnels.

Métrique de l'équipe de vente	2024 données
Représentants des ventes totales	42
Revenu annuel moyen par représentant	1,2 million de dollars
Couverture géographique	Texas, Nouveau-Mexique, Colorado

Conférences et salons commerciaux de l'industrie

Target Hospitality participe à des événements clés de l'industrie pour générer des prospects commerciaux et des opportunités de réseautage.

• Assisté à 18 conférences de l'industrie en 2023
• Participation de la conférence projetée pour 2024: 22 événements
• Focus primaire: secteurs de l'énergie, de la construction et des infrastructures

Plate-forme et site Web en ligne

Le canal numérique de l'entreprise sert de plate-forme critique d'acquisition et d'information des clients.

Métriques des canaux numériques	2024 statistiques
Visiteurs mensuels du site Web	47,500
Taux de conversion en ligne	3.7%
Trafic de site Web mobile	62%

Réseaux de développement commercial stratégique

L'hospitalité cible exploite les partenariats stratégiques pour étendre les offres de portée et de service du marché.

• Partenariats actifs avec 12 grandes sociétés de services énergétiques
• Collaboration avec 7 entreprises de construction régionales
• Taux d'expansion du réseau: 15% d'une année à l'autre

Relations de référence et répétées des clients

L'entreprise privilégie la maintenance de solides relations avec les clients et la génération d'une entreprise répétée.

Métrique de la relation client	2024 données
Pourcentage de clients répétés	68%
Période de rétention de clientèle moyenne	3,4 ans
Revenus générés par référence	22,3 millions de dollars

Target Hospitality Corp. (TH) - Modèle d'entreprise: segments de clientèle

Sociétés d'exploration du pétrole et du gaz

Target Hospitality sert de grandes sociétés d'exploration pétrolière et gazière opérant dans des régions clés telles que le bassin Permien, le schiste Eagle Ford et le schiste Marcellus.

Segment de clientèle	Nombre de clients actifs	Valeur du contrat moyen
Grande huile & Entreprises d'exploration de gaz	12	3,2 millions de dollars par an
Entreprises d'exploration de taille moyenne	25	1,5 million de dollars par an

Entrepreneurs du secteur de l'énergie

Target Hospitality fournit des solutions de logement modulaires aux entrepreneurs du secteur de l'énergie dans plusieurs régions.

• Clients entre les entrepreneurs du secteur de l'énergie: 47
• Couverture géographique: Texas, Nouveau-Mexique, Pennsylvanie
• Capacité moyenne du logement de la main-d'œuvre: 500-1 500 travailleurs

Main-d'œuvre de l'industrie de la construction

La société soutient des projets de construction à grande échelle avec des solutions complètes d'hébergement de la main-d'œuvre.

Type de projet	Nombre de projets	Durée moyenne
Construction des infrastructures	18	12-18 mois
Construction industrielle	22	9-15 mois

Équipes de projet d'extraction et d'infrastructure

Target Hospitality fournit des solutions de logement spécialisées pour les projets de mines à distance et de développement des infrastructures.

• CLIENTS DE PROJET MINIAUX ACTIVES: 9
• Taille moyenne de l'équipe du projet: 250-750 travailleurs
• Régions desservies: occidental des États-Unis, Alaska

Organisations de développement du gouvernement et des infrastructures

L'entreprise collabore avec les agences gouvernementales et les organisations de développement des infrastructures pour des exigences complexes de logement de la main-d'œuvre.

Type d'organisation	Nombre de clients	Plage de valeurs de contrat
Projets d'infrastructure fédéraux	5	4 à 7 millions de dollars
Projets du gouvernement de l'État	12	2 à 5 millions de dollars

Target Hospitality Corp. (TH) - Modèle d'entreprise: Structure des coûts

Acquisition et maintenance de l'unité de logement mobile

Au cours de l'exercice 2023, Target Hospitality Corp. a déclaré des coûts d'acquisition de l'unité de logement mobile total de 52,3 millions de dollars. Les frais de maintenance annuels pour la flotte de logements étaient d'environ 8,7 millions de dollars.

Catégorie de coûts	Dépenses annuelles ($)
Acquisition d'unité de logement mobile	52,300,000
Entretien de l'unité de logement mobile	8,700,000

Dépenses de location foncière et de préparation du site

Les coûts de location foncière pour 2023 ont totalisé 15,6 millions de dollars, les frais de préparation du site représentant 6,2 millions de dollars supplémentaires.

Type de dépenses	Coût annuel ($)
Bail	15,600,000
Préparation du site	6,200,000

Salaire et formation des employés

La rémunération totale des employés pour 2023 a atteint 37,5 millions de dollars, avec des frais de formation et de développement de 1,8 million de dollars.

• Salaire total des employés: 37 500 000 $
• Coûts de formation et de développement: 1 800 000 $

Transport et logistique

Les dépenses de transport et de logistique pour l'exercice 2023 étaient de 22,4 millions de dollars, y compris la gestion des flotte et les coûts de mouvement opérationnel.

Composant logistique	Dépenses annuelles ($)
Frais de transport	22,400,000

Investissements technologiques et infrastructures

Les investissements technologiques et infrastructures en 2023 s'élevaient à 5,9 millions de dollars, couvrant les améliorations des logiciels, du matériel et des infrastructures numériques.

• Investissement total technologique: 5 900 000 $
• Mises à niveau des infrastructures numériques: inclus dans l'investissement total

Structure totale des coûts pour 2023: 142 200 000 $

Target Hospitality Corp. (TH) - Modèle d'entreprise: Strots de revenus

Contrats de location de logement à long terme

Pour l'exercice 2023, Target Hospitality Corp. a déclaré 213,4 millions de dollars de revenus totaux provenant des contrats de location de logement à long terme, servant principalement les marchés du logement du secteur de l'énergie.

Type de contrat	Revenus annuels	Durée du contrat moyen
Logement du secteur de l'énergie	156,7 millions de dollars	24-36 mois
Logement gouvernemental / infrastructure	56,7 millions de dollars	18-24 mois

Frais d'hébergement par unité

Le revenu d'hébergement par unité pour 2023 était de 47,2 millions de dollars, avec un taux nocturne moyen de 98,50 $ par unité.

Frais de service de gestion du site

Les frais de service de gestion du site ont généré 22,6 millions de dollars en 2023, ce qui représente une augmentation de 12% par rapport à l'année précédente.

• Frais de gestion moyens par site: 375 000 $
• Sites gérés totaux: 60
• Couverture géographique: Texas, Nouveau-Mexique, Dakota du Nord

Services de transport et de logistique

Les services de transport et de logistique ont contribué 18,3 millions de dollars à la source de revenus en 2023.

Catégorie de service	Revenu	Pourcentage des revenus logistiques totaux
Transport de la main-d'œuvre	12,4 millions de dollars	67.8%
Support logistique	5,9 millions de dollars	32.2%

Location et entretien de l'équipement

Les services de location et de maintenance d'équipement ont généré 9,5 millions de dollars de revenus pour 2023.

• Unités totales d'équipement loué: 425
• Taux de location mensuel moyen: 22 353 $
• Revenus de maintenance de l'équipement: 3,2 millions de dollars

Target Hospitality Corp. (TH) - Canvas Business Model: Value Propositions

You're looking at how Target Hospitality Corp. delivers unique value to its clients, which is really about solving the hard logistics of housing big workforces far from home. They focus on being the single source for everything needed on site.

Vertically-integrated, full-service, remote community solutions means they handle the whole package. This includes on-site security, concierge services, laundry, logistics, and premium culinary offerings, not just the beds. Target Hospitality Corp. is one of North America's largest providers of these modular accommodations and value-added hospitality services.

The speed-to-market for mission-critical government and commercial needs is a key differentiator. They launched the Target Hyper/Scale brand specifically to address the rapidly expanding marketplace for AI and data center infrastructure. This focus helps them position as an essential partner when timelines are tight.

For high-quality, all-inclusive hospitality services for guest retention, the proof is in the repeat business. Customer renewal rates are reported as exceeding 90%. Also, the average existing customer relationship now exceeds 5 years.

The structure of their deals provides predictable, long-term revenue via multi-year contract structures. Target Hospitality announced over $530 million in multi-year contracts in 2025 alone. This revenue visibility helps stabilize their financial outlook.

They offer customizable, scalable housing for large, remote workforces. For instance, their Dilley, Texas assets, fully ramped up in September 2025, can support up to 2,400 individuals. The company reported an average of 5,632 utilized beds for the three months ended June 30, 2025.

Here's a quick look at the financial impact of these long-term agreements secured through late 2025:

Contract/Metric	Value Amount	Term/Duration	Capacity/Scale
Total Announced Multi-Year Contracts (2025)	Over $530 million	Various Multi-Year	N/A
Workforce Hub Contract (Total Value)	Approximately $166 million	Through 2027	N/A
Data Center Community (Expanded Total Value)	Approximately $83 million	Initial 2 years, option through 2032	650 beds
New Power Community Contract	Approximately $35 million	25 months (Starting June 2026)	Up to 250 individuals
Data Center Expansion Committed Revenue (Initial Term)	Approximately $40 million	Initial 2 years (Through March 2028)	160% increase in beds

The company's Q3 2025 revenue was reported at $99.4 million, with an Adjusted EBITDA of $21.5 million for that quarter. The reaffirmed 2025 outlook projects total revenue between $310 million and $320 million.

The ability to scale is evident in the Data Center Community expansion; it grew from an initial 250-bed plan to 650 beds, a 160% increase. This expansion required a capital investment of approximately $10 million to $15 million, utilizing existing assets.

For government needs, the company's government segment generated approximately $24 million in revenue during Q3 2025. A 5-year contract award for reactivating South Texas assets in Dilley, Texas, is valued at $246 million supporting U.S. government initiatives.

The financial strength underpinning these propositions includes a low debt-to-equity ratio of 0.03 and a strong Altman Z-Score of 4.74. Total available liquidity stood at approximately $205 million as of September 30, 2025, with zero net debt.

You can see the value proposition is built on securing large, long-duration contracts that leverage their existing operational footprint, like the Nevada project which required a minimal capital investment of approximately $8 million to $10 million.

Target Hospitality Corp. (TH) - Canvas Business Model: Customer Relationships

You're looking at how Target Hospitality Corp. locks in its revenue and keeps its clients coming back, which is key when you're dealing with massive, multi-year infrastructure projects. The relationship strategy here is all about deep integration and long-term commitment, not just transactional service.

The company emphasizes dedicated account management for its large, long-term contracts. This isn't just a sales rep checking in; it's about embedding Target Hospitality's team to manage complex, evolving needs over years. This approach clearly pays off, as management noted customer renewal rates exceeding 90%. That's a strong signal of satisfaction in this sector. Also, the average existing customer relationship length is reported to be over 5 years.

Revenue stability is heavily supported by contractual agreements that are designed to be sticky. You see this in how they structure deals, like the Data Center Community contract which includes four one-year extension options, potentially keeping the agreement active through March 2032. This contractual nature minimizes revenue uncertainty.

Consultative selling is how Target Hospitality designs these long-term partnerships. They don't just drop off trailers; they work with the client to design the community scope. We see concrete examples of this customization leading to revenue uplifts. For instance, scope modifications on the Workforce Hub Contract resulted in a 19% increase from the original contract value, boosting its total expected revenue through 2027 to approximately $166 million.

Here's a quick look at some of the significant, multi-year contract activity that defines these relationships in 2025:

• Total new multi-year contract awards announced in 2025 reached over $455 million.
• The Dilley Contract is valued at approximately $246 million over its expected 5-year term.
• The Data Center Community Expansion increased its total committed minimum revenue to approximately $83 million, a rise of over 90% from the initial contract.
• The recently announced Power Community Contract is projected to generate $35 million in revenue over 25 months.

These large deals underpin the reaffirmed 2025 total revenue outlook, which management set between $310 million and $320 million. The ability to secure these long-term, high-value agreements, often with scope expansions, shows the success of their consultative, relationship-first model.

To be defintely clear on the scale of these long-term commitments, here's how some of the major contracts stack up:

Contract/Segment	Revenue Impact/Value	Term/Duration Detail
Total New Multi-Year Contracts (2025)	Over $455 million	Across diverse end-markets in 2025
Workforce Hub Contract (Modified)	Total expected revenue of $166 million through 2027	Represents a 19% increase from original value
Dilley Contract	Approximately $246 million over 5 years	Projected to generate about $30 million in 2025 revenue
Data Center Community Expansion	Total committed minimum revenue of $83 million	Over 90% increase from initial $43 million contract
New Power Community Contract	Expected revenue of $35 million	Over a 25-month term, starting June 2026

Finance: draft 13-week cash view by Friday.

Target Hospitality Corp. (TH) - Canvas Business Model: Channels

You're looking at how Target Hospitality Corp. gets its services and contracts in front of customers, which is heavily weighted toward direct engagement with large entities, especially government bodies.

The company's channel strategy heavily relies on securing multi-year, large-scale agreements through direct negotiation, which is evident in the significant contract wins announced through late 2025.

Target Hospitality Corp. has announced over $455 million in multi-year contract awards in 2025 alone, showing the effectiveness of their direct sales and negotiation channels across diverse end-markets.

Direct sales team focused on government and Fortune 500 clients

The focus on large, specific clients is clear from the nature of the contract awards, which include entry into the data center/AI market with the launch of the Target Hyper/Scale brand.

• Customer renewal rates are reported as exceeding 90%.
• Average existing customer relationship duration is exceeding 5 years.
• The company is actively pursuing growth across commercial end-markets, including the rapidly expanding AI and data center space.

The execution of these large commercial deals is supported by specialized hiring, with several new people dedicated to the data center effort who have backgrounds in that world.

Direct contract negotiation with U.S. Government agencies

Direct negotiation with the U.S. Government remains a core channel, exemplified by the reactivation of assets in South Texas.

The Government segment generated approximately $24 million in revenue in the third quarter of 2025.

Here's a look at the major contract wins that define this channel as of late 2025:

Contract/Initiative	Channel Focus	Total Contract Value (Approximate)	2025 Revenue Expectation
Dilley Contract	U.S. Government Initiatives	$246 million (5-year term)	$30 million
Workforce Hub Contract	Critical Mineral Supply Chain (Commercial/Industrial)	$166 million (through 2027)	Revenue recognized across multiple years
Data Center Community Contract	AI and Data Center End-Market (Commercial/Tech)	$43 million (multi-year)	$5 million

Target Hospitality Corp. is also on the DoD WEXMAC contract vehicle, which serves as another formal channel for competing for government awards.

Investor Relations for capital market communication

Communication with capital markets is managed through scheduled public disclosures and investor events. The company reaffirmed its 2025 guidance during the Third Quarter 2025 Earnings Call on November 06, 2025.

• Reaffirmed 2025 Total Revenue guidance: $310 million to $320 million.
• Reaffirmed 2025 Adjusted EBITDA guidance: $50 million to $60 million.
• Total available liquidity as of September 30, 2025: Approximately $205 million.
• Net debt as of September 30, 2025: Zero.

Regional presence in key development areas like Northern Nevada

While specific 2025 financial data for Northern Nevada isn't detailed in the latest reports, the operational strategy involves maintaining assets in a 'ready state' to support future demand across regions.

The company maintains assets in West Texas, which are kept in a 'ready state' with carrying costs of approximately $2-$3 million per quarter while awaiting awards.

• Dilley assets, reactivated to support the government contract, are fully operational, capable of supporting up to 2,400 individuals.
• The company utilizes its existing network of communities across the U.S. to service demand.

Finance: draft 13-week cash view by Friday.

Target Hospitality Corp. (TH) - Canvas Business Model: Customer Segments

You're looking at the core groups Target Hospitality Corp. serves, which is definitely shifting toward commercial and away from being solely government-dependent, though that government work remains a bedrock. The company's strategy in late 2025 is clearly about diversifying its revenue base using the strength of its existing platform.

Target Hospitality Corp. has announced over $530 million in multi-year contract awards in 2025 alone, showing a strong push into new commercial verticals.

The primary customer segments are:

• - U.S. Government (e.g., DHS, ICE) for emergency detention and services
• - Critical mineral and energy infrastructure developers (Workforce Hub Contract)
• - Data center and AI infrastructure companies for remote housing
• - Large industrial and construction projects needing remote workforce lodging

Here's a breakdown of the key customer groups and the associated financial scale as of late 2025.

U.S. Government (e.g., DHS, ICE) for Emergency Detention and Services

This segment is anchored by significant, long-term government agreements. The reactivation of the South Texas assets in Dilley, Texas, supports critical U.S. government initiatives. This 5-year contract is valued at $246 million. For the 2025 fiscal year, this Dilley community is projected to generate approximately $30 million in revenue. The community is fully operational, capable of supporting up to 2,400 individuals. For context on the segment's contribution, the Government segment generated approximately $24 million in revenue during the third quarter of 2025.

Critical Mineral and Energy Infrastructure Developers (Workforce Hub Contract)

This segment is driven by major resource development, exemplified by the multi-year Workforce Hub Contract supporting a North American critical mineral supply chain. This contract has seen scope enhancements, raising its total expected revenue through 2027 to approximately $166 million, which is a 19% increase over the original value. The company anticipated realizing approximately $68 million of committed minimum revenue from this contract in 2025.

Data Center and AI Infrastructure Companies for Remote Housing

Target Hospitality Corp. has actively entered the rapidly expanding AI and data center end-market, launching the Target Hyper/Scale brand to address this. They secured a multi-year lease and services agreement, the Data Center Community Contract, valued at $43 million. The initial 250-bed community associated with this contract contributed approximately $5 million in revenue during 2025.

Large Industrial and Construction Projects Needing Remote Workforce Lodging

This category captures recent diversification wins, like the new multi-year contract announced in December 2025 to support power generation expansion in Northern Nevada. This project, which supports mining and data center development, is expected to generate approximately $35 million in revenue over its 25-month term, starting in June 2026. The facility will house up to 250 workers. This new award, leveraging existing regional capacity established earlier in 2025 for the Thacker Pass workforce hub contract, required a minimal capital investment of approximately $8 to $10 million.

You can see how these commercial wins are stacking up against the overall business performance:

Customer Segment / Contract	Contract/Project Value (Committed/Expected)	Capacity (Individuals)	Key 2025 Financial Impact
U.S. Government (Dilley Contract)	$246 million (5-year term)	Up to 2,400	Approx. $30 million in 2025 revenue
Critical Mineral/Energy (Workforce Hub)	$166 million (Through 2027)	Approx. 2,000	Approx. $68 million committed minimum in 2025
Data Center/AI (Initial Community)	$43 million (Lease/Services Agreement)	250 (Initial Community)	Approx. $5 million in 2025 revenue
Industrial/Power Infrastructure (NV Project)	$35 million (25-month term)	Up to 250	Expected to represent 11% of LTM revenue of $314.55 million

The company's total announced multi-year contracts in 2025 reached over $530 million. The third quarter 2025 total revenue was $99.4 million. The Workforce Hospitality Solutions segment, which includes the Workforce Hub and data center contracts, generated approximately $37 million in revenue in Q3 2025, primarily from construction activity.

You'll note the strong customer retention, with management reporting customer renewal rates exceeding 90% and the average existing customer relationship exceeding 5 years.

Finance: draft 13-week cash view by Friday.

Target Hospitality Corp. (TH) - Canvas Business Model: Cost Structure

You're looking at the cost side of Target Hospitality Corp.'s operations as of late 2025. The core of their cost structure ties directly to deploying and maintaining their modular assets, which means a significant portion is fixed, but day-to-day service delivery brings in variable expenses.

The high fixed costs come from owning and operating the modular accommodation fleet. This includes the initial outlay for the assets and the ongoing costs to keep them ready. For instance, the depreciation expense for the three months ended September 30, 2025, was reported at $15.09 million.

Variable costs scale with occupancy and service demand. These are the costs tied to keeping the communities running smoothly for the residents. Community operating costs specifically include things like catering food purchases, lodge supplies, apparel and uniform expenses, linen expenses, operating lease expense for land, facilities, and equipment, property taxes, and utility costs.

Capital expenditures are a major component, especially with the current growth pipeline focused on data centers and critical minerals. Target Hospitality Corp. had approximately $29.0 million in capital expenditures for the three months ended September 30, 2025, mainly for construction under the Data Center Community Contract. The company is actively funding new builds; for example, the Power Community Contract construction requires a capital investment estimated between $8 million to $10 million. Separately, the Data Center Community Expansion involves a capital investment of approximately $10 to $15 million.

Depreciation and maintenance of the accommodation fleet are non-cash fixed costs that reflect the wear and tear on these specialized assets. As noted, depreciation for Q3 2025 was $15.09 million.

Corporate overhead and general administrative expenses represent the costs to run the central business functions. For the quarter ending September 30, 2025, the Selling, General & Admin Expense was $12.92 million. The total operating expenses for that same quarter were $17.88 million.

Here's a snapshot of some key expense metrics from recent quarters in 2025:

Expense Category (Period Ending)	Amount (USD Millions)
Total Operating Expenses (Sep 30, 2025)	$17.88
SG&A Expense (Sep 30, 2025)	$12.92
Depreciation Expense (Sep 30, 2025)	$15.09
Capital Expenditures (3 Months Ended Sep 30, 2025)	$29.0
Estimated Annual Interest Savings from Note Redemption	~$19.5

You can see how the construction activity impacts the cash flow and expense lines. The higher operating expenses in Q3 2025, compared to Q2 2025's $16.59 million in total operating expenses, were primarily due to construction services activity under the Workforce Hub Contract.

The structure of these costs means Target Hospitality Corp. needs high utilization and strong contract pricing to cover the fixed asset base. The variable costs, while necessary for service delivery, are managed through the specific terms of their hospitality contracts.

• High fixed costs from owning and operating modular assets.
• Variable costs for food service, housekeeping, and site labor.
• Capital expenditures for new community construction, like $8M to $10M for Power Community.
• Depreciation and maintenance of accommodation fleet, with Q3 2025 depreciation at $15.09 million.
• Corporate overhead and general administrative expenses, with Q3 2025 SG&A at $12.92 million.

Finance: draft 13-week cash view by Friday.

Target Hospitality Corp. (TH) - Canvas Business Model: Revenue Streams

Target Hospitality Corp. full-year 2025 revenue guidance is set at $310 million to $320 million.

The trailing twelve-month revenue as of September 30, 2025, was reported as $315 million.

Revenue streams are derived from distinct segments, with significant contributions from both government and commercial/workforce solutions contracts.

Revenue Stream Component	Specific Contract/Segment	Latest Reported Period Data (Q3 2025)	Relevant Full Contract Value/Guidance
Government Segment Revenue	Dilley Contract (CoreCivic)	Approximately $24 million in Q3 2025 revenue.	Expected to generate approximately $30 million in revenue in 2025. Total contract value over 5 years is over $246 million.
Workforce Hospitality Solutions (WHS) Revenue	Workforce Hub Contract (Commercial)	Approximately $37 million in Q3 2025 revenue (WHS segment including Hub and data center contracts).	Total contract value now approximately $166 million through 2027, a 19% increase from original value.
Construction and Services Revenue	New Contract Ramp-ups (e.g., Workforce Hub)	Approximately $36.8 million in Q3 2025 revenue, primarily from construction services activity.	Q2 2025 saw approximately $15.0 million in revenue from construction services activity on the Workforce Hub Contract.
Diversification Revenue	Data Center Community Contract	New Data Center Community Contract secured in 2025.	Multi-year lease and services agreement valued at $43 million.
Value-Added Services Revenue	Other Hospitality Services	Approximately $3.0 million in Q3 2025 revenue.	Q2 2025 revenue for this category was $2.9 million.

Target Hospitality Corp. secured over $455 million in new multi-year contract awards for 2025.

The company is also seeing revenue from newer commercial agreements:

• - Power Community Contract in Northern Nevada is expected to generate approximately $35 million over 25 months, starting June 2026.
• - The Workforce Hub Contract supports a North American critical mineral supply chain.

Revenue from the Government segment in Q3 2025 was approximately $24 million.

For the third quarter of 2025, total revenue was $99.4 million.