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Unless the context otherwise requires, references to we , us , our , the Company , or Target Hospitality refer to Target Hospitality Corp. and its consolidated subsidiaries. Overview Our company, Target Hospitality, is one of the largest vertically integrated specialty rental and hospitality services companies in North America.
The business is unprofitable at the operating level (-10.84% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 17.0% YoY. Margins deteriorated 39.0pp alongside, both lines moving the wrong way.
Free cash flow declined 51% versus the prior year, cash generation momentum has weakened. ROIC dropped from 14.42% to -5.30%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$324M
▼ -17.0% YoY
Net Income (TTM)
-$44M
▼ -152.1% YoY
Op. Margin
-14.83%
▼ -39.0pp YoY
ROIC
-8.99%
▼ -19.7pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$92M
▼ -51.4% YoY
Op. Cash Flow (TTM)
$77M
▼ -51.2% YoY
Net Debt
$37M
Cash & Equiv.
$5M
5Y CAGR: +7.3%
5Y CAGR: +9.6%
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