Target Hospitality Corp. (NASDAQ:TH) shares are up during Wednesday’s premarket session following the announcement of a significant multi-year contract.
The company is expected to generate over $550 million in revenue from this deal, which is aimed at constructing a data center hub for a top-five hyperscaler.
Also, Target Hospitality raised its preliminary 2026 sales outlook to $360 million–$370 million from $320 million–$330 million, signaling stronger expected revenue growth.
“As recent WHS contract awards come online and scale through 2026, along with the build‑out and completion of the Data Center Hub by mid‑2027, the company expects revenue and adjusted EBITDA to build through 2026 and into 2027,” the company said in a press release.
What’s The Deal?
Target Hospitality is set to leverage a substantial portion of its existing assets to construct the Data Center Hub, with an anticipated net capital investment of approximately $115 to $125 million. The contract is expected to generate committed minimum revenue over its …
This post was originally published here
