Target Hospitality Corp (NASDAQ:TH) shares are trading lower by 51% to $4.56 Monday morning after the company announced it lost a key government contract and withdrew its FY25 guidance.
What To Know: Target Hospitality on Monday announced that the U.S. government will terminate its Pecos Children’s Center services agreement with Target's nonprofit partner, effective February 21, 2025.
As a result, the nonprofit partner is ending its lease and services contract with Target, which had provided modular accommodations for up to 6,000 individuals.
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What Else: Despite this setback, Target says the company will retain ownership of its modular assets and is actively seeking new opportunities to repurpose them. The company is exploring potential uses aligned with U.S. immigration policies, including redeploying assets previously leased in Dilley, Texas.
Due to the contract termination, Target is withdrawing its preliminary 2025 financial outlook and plans to provide operational and financial updates soon.
According to data from Benzinga Pro, TH has a 52-week high of $11.84 and a 52-week low of $5.00.
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