Target Hospitality pivots to data centers and lithium after $168M government contract loss

Filed March 11, 2026 · Period ending December 31, 2025 · Compared to 10-K Mar 26, 2025 · ~2 min read

Key Changes

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  Government segment revenue collapsed 68% ($225M to $71M) after PCC Contract termination in February 2025; company swung to $37M net loss from $71M profit despite securing $175M lithium mining contract and $134M data center contract.

  MD&A: Consolidated Results; Notes: Segment Reporting verify on EDGAR →
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  New WHS segment (30% of 2025 revenue) supports lithium mining at Thacker Pass and data center infrastructure in Southwest U.S.; management estimates $18B addressable market but warns construction revenue carries lower margins than terminated government contracts.

  Business: WHS Segment; MD&A: Revenue Mix verify on EDGAR →
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  Cash fell 96% to $8M after $181M debt repayment and $67M growth capex; company amended credit facility covenants in December 2025 to accommodate timing of capital spending for data center and critical minerals expansion.

  Notes: Cash Flows; Risk Factors: ABL Facility verify on EDGAR →