Target Hospitality said it would repurchase about $30 million in shares in connection with a September 10 offering close. TDR Capital-controlled entities sold 14 million shares for about $259 million at $18.50 each; the company sold no shares and received no proceeds.
Since January, Target Hospitality had secured more than $1.4 billion in multi-year contracts representing over 9,000 beds, driven by demand from crews building AI data centers and power projects. In Q2 2026, revenue rose 39% year over year to $85.5 million, adjusted EBITDA more than quintupled, and management raised full-year revenue and adjusted EBITDA guidance by 11% and 13%, respectively.
The planned repurchase would use cash on hand and borrowings from a $660 million credit facility; liquidity was $141 million on June 30. Despite $111 million in year-to-date operating cash flow, the company reported a Q2 GAAP net loss of $9 million, or $0.09 per share; the article says much of the cash flow reflected customer advances. It presents the sponsor's sale as a possible caution signal and the buyback as a possible sign of management confidence. It also cited short interest at 13.69% of the float and said the stock traded at 25.25 times forward earnings on September 22.
