Target Hospitality : Investor Presentation - May 2026

Published: 2026-05-11 07:28:21 ET TH

Published on 05/11/2026 at 07:28 am EDT

Target Hospitality Company Overview

One of North America's Largest Providers of Comprehensive Hospitality Solutions Target 12 Provides Major Workforce Recruitment and Retention Benefits

Leading vertically integrated provider of modular workforce accommodations and value-added hospitality services

We believe we are the largest provider capable of delivering comprehensive, turnkey solutions at scale in remote and expansive geographies that we serve

Interchangeable, long-lived specialty rental fleet generates robust asset-level economics with nominal maintenance capex requirements

2026 End Market Revenue Breakdown (1)(3)

Providing critical services to workers off the clock…

FOOD

REST

CONNECTION

WELLNESS

COMMUNITY

2026 Outlook Ranges (3)

($ in millions)

HOSPITALITY

…to enhance their performance

on the clock

ENGAGEMENT 07

PERFORMANCE 08

SAFETY 09

LOYALTY 10

PRODUCTIVITY 11

PREPAREDNESS 12

Strategically aligned with secularly growing end markets including data center construction, critical mineral development mining sites, and vital national security programs

Workforce Hospitality Solutions ("WHS")

47%

14%

Hospitality and Facilities Services & Other (2)

39%

$75 - $85

Adj. EBITDA(3)

$460 - $480

Total Capex(4)

$370 - $380

Total Revenue

Government

Notes:

Represents percentage of 2026 total consolidated revenue outlook range mid-point, as provided on May 11, 2026.

Includes HFS - South, and All Other segments.

As provided May 11, 2026. The unaudited estimated financial results included in this presentation are subject to revision. As a result, actual results for the year ended December 31, 2026, may differ materially from the estimated unaudited financial results as a result of the year-end audit, or upon occurrence of other developments that may arise prior to the time financial results are finalized. Information reconciling forward-looking Adjusted EBITDA to GAAP financial measures are unavailable to the Company without unreasonable effort, and therefore, no reconciliations to the most comparable GAAP measures are provided for the 2026 financial outlook.

Total capital expenditures excluding acquisitions.

Investor Presentation | 3

Market Dilemma

Target Hospitality Opportunity

Accelerating data center demand, coupled with lagging

supply, is expected to create a significant deficit by 2030

Target Hyper/Scale Provides Scalable, Fully Integrated

Solutions on Demand for Data Center Developers

Meeting this demand will require building ~2X the data

center capacity built in the last 24 years - in under 5 years (1)

Large-Scale Data Center Projects are Being Built in

Remote Locations that Lack Infrastructure

Data Center Race Establishes Distinct Growth Vertical

$18Bn

Total Addressable Market (TAM) (2)

Investments expected to total ~$7Tn across the value chain,

primarily driven by AI workloads (1)

Multi-Trillion Dollar Advanced Technology

Infrastructure Investment Cycle Underway

Meeting this demand will require an immense amount of

land, labor and infrastructure to support development

Highly Customized All-Inclusive Communities Address

the Key Labor Constraint in Scaling Remote Projects

Target Hyper/Scale Establishes a Unique Sub-Brand Focused on Supporting Data Center Development

Notes:

Source: McKinsey Quarterly, April 2025

Total current potential market opportunities based on management's estimates of hospitality services and solutions required to support capital investments in data center development, AI infrastructure, power generation and critical mineral development. Estimates are derived from historical percentages of hospitality services

and solutions required to support these capital investment cycles.

Investor Presentation | 4

Business Transformation Through Strategic Initiatives

Strategic Business Enhancement and Commercial Realignment Position Target Hospitality for Growth

Enhanced

Contract Structure

End Market

Mega Trends

Pipeline Expansion

Expand End Markets and Geographies

Extended Contract Durations

Daily Rate Optimization

~$70

HFS Segment Average

Years Average Duration

LSA

Contract Structure

Natural Resource Development

<5,000

Previous Pipeline

~$1Bn

Estimated TAM (1)

Launched price optimization initiatives to better align rates with project requirements

Revise contract structure to secure longer terms and encourage extensions

Expand take-or-pay contract portfolio to drive revenue visibility

Develop relationships with a diverse set of blue-chip customers

Maintain a large asset base to enable rapid scaling for blue-chip customers

Surging AI and other megatrends drive sustained demand for data center projects

Renewed focus on more complex projects to deliver highly differentiated solutions

Increase revenue visibility while building longer-term customer relationships

Reduce uncertainty from "termination for convenience" and similar clauses

Continue to leverage density in Southwest

U.S. while expanding to new geographies

Drive scale-driven utilization advantages through efficient asset redeployment

Expand customer and end-market exposure to capture data center opportunities and related infrastructure development

>$100

Supported by Enhanced Amenities / Customized Solutions

Year Average Duration with Multiple Additional Year Options

Take-or-Pay

Contract Structure

National Hyperscalers and EPCs

20,000+

Beds of Potential Opportunity (for WHS)

$18Bn

Estimated TAM (2)

Notes:

Total potential market opportunities based on management's estimate of hospitality services needed to support predominantly natural resource development customer activity in established operational regions. Estimates are derived from regional market analysis and average historical customer contract economics.

Total current potential market opportunities based on management's estimates of hospitality services and solutions required to support capital investments in data center development, AI infrastructure, power generations and critical mineral development. Estimates are derived from historical percentages of hospitality services and solutions required to support these capital investment cycles.

These are not projections; they are goals and are forward-looking, subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of Target and its management, and are based upon assumptions with respect to future decisions, which are subject to change. Actual results will vary and those variations may be material. For discussion of some of the important factors that could cause these variations, please consult the "Risk Factors" section of Target's 2025 Form 10-K. Nothing in this presentation should be regarded as a representation by any person that these goals will be achieved, and Target undertakes no duty to update its goals.

Illustrative Terms (3)

Investor Presentation | 5

Customer Need

"Help Us Attract and "Deliver Turn-Key "Our Project Just "We Need a Partner "Our Workers Need Retain Skilled Labor Solutions so We Received Approval; Who Can Scale in to be Safe and

at Scale in Remote Can Focus on Our We Need to Get Tandem With Our Comfortable While Geographies" Core Mission" Started ASAP" Project's Ramp-up" on the Jobsite"

Solution

Build, manage and operate self-sufficient workforce communities

Drive retention with premium, in-demand lifestyle amenities

Target manages the entire process from initial setup to finish

Customers know that their workforce needs are addressed

Our motto is "Move Fast. Build Things."

Target was founded on the principles of efficiency and rapid deployment

Nimble operations allow Target to quickly adapt to fluctuations in worker population

Enabled by scalable, modular equipment

Professional and highly trained full-time staff provide 24/7 support

Dedicated on-site security personnel

We Solve our Customers' Most Challenging Problems

Investor Presentation | 6

250

Individuals

Initial Data Center Community Contract established to provide comprehensive facility services for up to 250 individuals

650

Individuals

Finalized first community expansion, increasing the community size to accommodate up to 650 individuals

1,050

Individuals

Second expansion underway to add capacity for up to 1,050 individuals as the project continues to ramp

1,500+

Individuals

Embedded infrastructure to facilitate further expansion and accommodate up to 1,500 individuals based on ultimate project requirements

Target Hospitality Rapidly Deploys and Integrates a Mobile and Scalable Fleet…

Our Fleet Enables us to Grow Alongside our Customers

…To Meet the Ever-Evolving Needs of our Customers Across the Entire Project Lifecycle

<60 Days 90-120 Days 120-180 Days 180+ Days

Rapid Ramp-up Capabilities Enabled by Strategic Inventory Enhance Value Proposition and Competitive Differentiation

Investor Presentation | 7

Scaled Network with Strategic Regional Density

North America Hospitality Locations

29 Total Communities (1)

Across North America

Target Hospitality Enables Our Customers to Attract and Retain Employees in Hard-to-Recruit Geographies by Offering Turnkey Solutions and Best-in-Class Amenities

Target Hospitality Community

Locations of large-scale data center development

Note:

1. Community count includes the 27 communities that are owned or leased by Target Hospitality, as well as the 2 that are not owned or leased

Investor Presentation | 8

Target Hospitality Communities are Purpose Built for the Unexpected

Targeting 100% Uptime Even in Challenging Situations

Facilities are built to withstand inclement weather from the start

Proactively stocked with equipment needed to clear sites of weather

100% back-up power for the entire facility and 24/7 emergency fueling services

Bulk fuel delivered and stored on-site for ancillary power generation

Staff is trained and "battle tested" for extreme weather events

Water lines are always insulated and heat traced

Five days minimum of backup food on-site for the entire workforce

Offsite workforce hub providing remote support around the clock

We aim to ensure that workers feel safe and secure with sufficient reserves of power, food, water and 24/7 support

Developer can remain fully focused on project work knowing their employees are safe and taken care of

No Disruption to Operations

Target Hospitality was Prepared

Unexpected snowstorm hits Texas

Widespread road closures with no traffic in or out of the facility

Zero access to outside services during the storm

500+ workers effectively operating on an "island" and ordered to shelter in place

Case Study: 2026 Snowstorm in Texas

Investor Presentation | 9

40%+ IRR Over 20 Years, Driven by Minimal Capex and Maintenance Needs and Consistent Contracted Revenue

Robust Unit Economics with Minimal Maint. CapEx

Cumulative Cash Flow Years in Service

$000s

350

300

250

200

150

100

(50)

< 3-Year Payback Period

10 11 12 13 14 15 16 17 18 19 20

$105 / $58

ADR / COGS

per Bed

$1.2K

Yearly Maint. Cost per Bed

$18K

Cash Flow per Bed per Year

7.6x

Unlevered Returns per $

< 3

Year Payback Period

Outputs

Inputs

$47K

Capex per Bed

Illustrative Unit Level Cash Flow Profile1

Illustrative Community Statistics

500

Total Beds

$23MM

Initial Investment (2)

$190MM

Cumulative EBITDA

~50%

EBITDA Margin

Note:

Unit level economics on an unlevered pretax basis

Includes total transportation & mobilization costs; Capex is only spent with impending contracts with high revenue visibility

Investor Presentation | 10

Leverage Unique Strategic Advantages to Drive Growth

Presence in High-Activity Regions

Strategic regional presence with network density in key geographies enables rapid mobilization with enhanced operational efficiencies

Leading full-service provider of scaled, remote workforce hospitality solutions across the U.S.

Perform all on-site services in-house to ensure consistent,

Hundreds

Of Premium Offerings

high-quality solutions

Financial flexibility and capacity to finance large infrastructure build-outs

An Industry Leader

0.6x

Net Leverage(1)

Well Positioned to Rapidly Deliver Comprehensive Solutions that Enable the Buildout of Critical and Remote Projects

Notes:

As of March 31, 2026

Investor Presentation | 12

Key Drivers of Outsized Growth Opportunity

Growth Pipeline Targeting Potential $18Bn (2) of Market Opportunities Across Diverse Industries, Underpinned by Data Center Opportunities and Related Infrastructure Development

Further Enhance Unit-Level Economics

Data Center Infrastructure Opportunities

Infrastructure, Critical Mineral Development and National Security

Inorganic M&A Opportunities

Unique Capabilities

Unmatched Services

Holistic Solutions

Tailwinds from

$7Tn (1) of Committed Infrastructure Investments

$53MM

Adjusted EBITDA

Notes:

2025A

Source: McKinsey Quarterly, April 2025

Investor Presentation | 13

Current Contract Opportunity Pipeline (1)

Recent Contract Announcements

May 2026 - AI Infrastructure Contract

200+

Planned and In-Process Large-Scale U.S. Infrastructure Projects

30+

Identified Opportunities in Early Stages of Dialogue

10+

Active Discussions

Announced a 48-month, ~3,370-bed agreement to provide workforce accommodations and customized hospitality solutions supporting AI Infrastructure development

Apr. 2026 - Data Center Hub Contract

Announced a five-year, ~4,000-bed lease and services agreement (with two additional two-year extension options) directly with a top-five hyperscaler to support their development of a data center campus in North Texas

Mar. 2026 - West Texas Power Community Contract Established a 47-month, 1,400-bed agreement to provide turnkey workforce accommodation for a multi-gigawatt power plant supporting

Hyperscale AI data center development in West Texas

Mar. 2026 - Pecos Power Community Contract Announced a 400-bed, multi-year contract to support the development of essential natural gas power generation capacity

near Pecos, Texas

Feb. 2026 - 2nd Data Center Community Expansion

2nd 400-bed expansion to the original 250-bed data center campus representing a total bed increase of 320% with the ability to support 1,050 individuals

Dec. 2025 - Power Community Contract

Established a 24-month, 250-bed agreement to support power generation for mining and data center development in Northern Nevada

Revenue

Executing Against a Robust Opportunity Pipeline

$750MM

$550MM

$129MM

$23MM

$49MM

$35MM

Nov. 2025 - 1st Data Center Community Expansion

Demonstrated History of Converting Identified Opportunities into New Business Wins

1st 400-bed (160%) expansion to the previously announced 250-bed community to support the data center campus

Aug. 2025 - Data Center Community Contract

Announced a 250-bed, multi-year contract to provide full turnkey support and premium services for a regional data center campus in the

$42MM

$43MM

Note:

Southwestern US

Investor Presentation | 14

Contract opportunity pipeline includes uncontracted services with both existing and new customers. We cannot guarantee that this pipeline will result in realized contractual opportunities or meaningful revenue or profitability.

Consistently Enhancing Financial Strength

Strong Financial Position Supports Growth Initiatives

Capitalization and Liquidity

$MM

03/31/2026

Cash and Cash Equivalents

ABL Facility - $175MM Capacity

Finance Leases and Other Financing Obligations

As of March 31, 2026, total available liquidity of approximately $150 million with a net leverage ratio of 0.6x.

Total Debt $34

Net Debt $29

Total Liquidity, including undrawn ABL Facility capacity $150

Illustrates Target's prudent capital discipline and consistent focus on maintaining a strong balance sheet and flexible capital structure.

Establishing a highly durable business model as Target continues to pursue a strong pipeline of organic growth opportunities.

Debt Maturity Profile

$ in millions

$200

$150

$100

$50

$175 ABL

$145

No Near-Term Maturities

2026 2027 2028

Financial Strength and Flexibility Establish Ideal Platform to Continue Pursuing Strategic Growth Initiatives

Investor Presentation | 16

Case Study: Diversification and Regional Expansion

WHS Segment Broadens Customer Base and Geographic Reach

Multi-Year Workforce Hub Contract Supporting Critical Mineral Development

Thacker Pass

Winnemucca

Reno

NEVADA

Las Vegas

2,000

Individuals Supported at the Hub

Strategically located in Winnemucca, Nevada, ~60 miles from Thacker Pass, the

world's largest measured lithium resource and reserve

$177MM

Revenue through 2027 (1)

Positions Target to support the development of Thacker Pass through multiple project phases

85 Years

Life of Mine of Thacker Pass

Attractive return profile, with minimal capital investment underpinned by a multi-year contract

Strategic regional expansion supports opportunities to pursue other potential growth initiatives within an expanding region of critical mineral development

"Transportation, infrastructure, defense capabilities, and the next generation of technology rely upon a secure, predictable, and affordable supply of minerals"

- White House Executive Order, March 20, 2025

Note:

1. The Workforce Hub contract includes both construction and service revenues. As of December 31, 2025, construction of the Workforce Hub was substantially complete, with the customer retaining ownership of the assets. Additionally, Target anticipates an increase in service activities starting in 2026, following the completion of the construction phase.

Investor Presentation | 18

Proven Solutions with Growing End-Market Presence

Hospitality and Facilities Services (1) - HFS

Workforce Hospitality Solutions - WHS

Government Services

Serving a diverse set of customers across critical mineral development, power generation and AI data center infrastructure

Highly customized workforce solutions with capabilities to expand alongside the customer

Anticipate margin expansion to over 30% as communities scale following initial mobilization

Strong secular tailwinds and attractive contract structures creating a long runway for future growth across an $18Bn TAM (2)

20 all-inclusive, full-turnkey communities, primarily supporting natural resource developers

Long-standing relationships with multinational corporations and a customer renewal rate of ~90% since 2021

Contract structure and consistent customer retention provide enhanced revenue visibility

Subcontractor to multiple federal agencies and

U.S. government initiatives since 2014, with current focus on Department of Defense projects

Reactivation of Dilley assets highlights Target's flexible service offering and unique capabilities

Efficiency in scaling facilities, with a 2,400-bed community fully operational in less than a year

Leading Hyperscalers Constructors

/ EPCs

Select Customers

Complementary Business Mix Creates Multiple Avenues to Accelerate Growth Across Critical End-Markets

Notes:

Including the "All Other" segment.

Total current potential market opportunities based on management's estimates of hospitality services and solutions required to support capital investments in data center development, AI infrastructure, power generations and critical mineral development. Estimates are derived from historical percentages of hospitality services

and solutions required to support these capital investment cycles.

Investor Presentation | 19

Customized and Purpose-Built Solutions

Premium Hospitality Services and Offerings

Vertically Integrated Solutions Across Key End Markets

Manage

Complete Facilities Management

Technology Infrastructure & Services

Waste & Janitorial Solutions

Operate

Holistic Remote Workforce Solutions

Gated Access & 24/7 Security

Comprehensive Maintenance Services

Build

Real Estate Acquisition

Commercial Construction & Fabrication

Modular Asset Integration

Design

Site Selection & Civil Surveying

Community Configuration & Layout

Engineering & Land Preparation

Develop Service

Full Utility Capabilities & Integrations

Cellular Connectivity & Installation

Integrated Community Amenities

Multiple 24/7 Culinary Solutions

Premier Health & Recreational Facilities

Transportation & Logistics Services

Investor Presentation | 20

Disclaimer

Target Hospitality Corp. published this content on May 11, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 11, 2026 at 11:27 UTC.