Target Hospitality Corp (TH) 2025 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Target Hospitality Second Quarter 2025 Earnings Conference Call. (Operator Instructions)

女士們、先生們，早安，歡迎參加 Target Hospitality 2025 年第二季財報電話會議。（操作員指示）

This call is being recorded on Thursday, August 7, 2025. I would now like to turn the conference call over to Mr. Mark Schuck. Please go ahead.

該通話於 2025 年 8 月 7 日星期四錄製。現在我想將電話會議交給馬克舒克先生。請繼續。

Thank you. Good morning, everyone, and welcome to Target Hospitality's Second Quarter 2025 Earnings Call. The press release we issued this morning, outlining our second quarter results can be found in the Investors section of our website. In addition, a replay of this call will be archived on our website for a limited time.

謝謝。大家早安，歡迎參加 Target Hospitality 2025 年第二季財報電話會議。我們今天早上發布的新聞稿概述了我們的第二季業績，您可以在我們網站的「投資者」部分找到。此外，本次通話的重播將在我們的網站上存檔一段時間。

Please note the cautionary language regarding forward-looking statements contained in the press release. This same language applies to statements made on today's conference call. This call will contain time-sensitive information as well as forward-looking statements, which are only accurate as of today, August 7, 2025.

請注意新聞稿中關於前瞻性陳述的警告性語言。同樣的語言也適用於今天的電話會議中的聲明。本次電話會議將包含時間敏感資訊以及前瞻性陳述，這些資訊僅截至今天（2025 年 8 月 7 日）準確。

Target Hospitality expressly disclaims any obligation to update or amend the information contained in this conference call to reflect events or circumstances that may arise after today's date, except as required by applicable law. For a complete list of risks and uncertainties that may affect future performance, please refer to Target Hospitality's periodic filings with the SEC.

Target Hospitality 明確表示不承擔更新或修改本次電話會議中包含的資訊以反映今天之後可能出現的事件或情況的義務，除非適用法律另有規定。有關可能影響未來業績的風險和不確定因素的完整列表，請參閱 Target Hospitality 向美國證券交易委員會提交的定期文件。

We will discuss non-GAAP financial measures on today's call. Please refer to the tables in our earnings release posted in the Investors section of our website to find a reconciliation of non-GAAP financial measures referenced in today's call and their corresponding GAAP measures.

我們將在今天的電話會議上討論非公認會計準則財務指標。請參閱我們網站「投資者」部分發布的收益報告中的表格，以查找今天電話會議中引用的非 GAAP 財務指標與其相應的 GAAP 指標的對帳表。

Leading the call today will be Brad Archer, President and Chief Executive Officer; followed by Jason Vlacich, Chief Financial Officer and Chief Accounting Officer. After their prepared remarks, we will open the call for questions. I'll now turn the call over to our Chief Executive Officer, Brad Archer.

今天的電話會議主持人是總裁兼首席執行官布拉德·阿徹 (Brad Archer)；隨後是首席財務官兼首席會計官傑森·弗拉奇 (Jason Vlacich)。在他們發表完準備好的發言後，我們將開始提問。現在我將把電話轉給我們的執行長布拉德·阿徹 (Brad Archer)。

Thanks, Mark. Good morning, everyone, and thank you for joining us on the call today. We entered 2025 focused on accelerating our strategic growth initiatives and diversifying our contract portfolio. In the first half of this year, we announced two multiyear contracts valued at over $400 million, supporting a diverse range of customers. These contracts exemplify Target's unique value proposition and our ability to deliver tailored solutions and exceptional services across various end markets.

謝謝，馬克。大家早安，感謝大家今天參加我們的電話會議。進入 2025 年，我們將專注於加速策略成長計畫並實現合約組合多元化。今年上半年，我們宣布了兩份價值超過 4 億美元的多年期合同，為不同類型的客戶提供支援。這些合約體現了 Target 獨特的價值主張以及我們為各個終端市場提供客製化解決方案和卓越服務的能力。

Additionally, we are finalizing contract discussions regarding a multiyear lease and services agreement that supports the rapidly expanding technology infrastructure and data center end market. This agreement will further broaden our diverse end market reach and contract portfolio.

此外，我們正在敲定有關多年期租賃和服務協議的合約談判，以支援快速擴展的技術基礎設施和資料中心終端市場。該協議將進一步擴大我們多樣化的終端市場範圍和合約組合。

These achievements have driven significant progress in advancing our growth initiatives, both within Target's existing markets and in developing new growth sectors. Moreover, these diverse markets all benefit from strong long-term growth trends, providing solid platforms to accelerate our strategic objectives. Our growth pipeline remains strong, supported by a historic domestic investment cycle and rising demand from the government sector. With these strong tailwinds, we continue to focus on maintaining this momentum and advancing our strategic initiatives. Turning to our segment and specific growth opportunities.

這些成就推動了我們在 Target 現有市場和開發新成長領域的成長計畫取得重大進展。此外，這些不同的市場都受益於強勁的長期成長趨勢，為加速我們的策略目標提供了堅實的平台。在歷史性的國內投資週期和政府部門不斷增長的需求的支持下，我們的成長前景仍然強勁。在這些強勁的順風的幫助下，我們將繼續致力於保持這一勢頭並推進我們的戰略舉措。轉向我們的細分市場和具體的成長機會。

Our HFS segment continues to benefit from consistent customer demand as clients value our premium service offerings and network capability. Target's ability to deliver these unmatched solutions is essential for maintaining long-term customer relationships and achieving consistent contract renewal rates exceeding 90%. These factors help secure a recent multiyear contract extension with one of our largest HFS customers, highlighting a relationship that has lasted over 15 years.

由於客戶重視我們的優質服務產品和網路能力，我們的 HFS 部門持續受益於持續的客戶需求。Target 提供這些無與倫比的解​​決方案的能力對於維持長期客戶關係和實現超過 90% 的持續合約續約率至關重要。這些因素有助於我們與最大的 HFS 客戶之一續簽多年期合同，突顯了我們已持續 15 年以上的合作關係。

This proven operating model is central to Target's success and has served as the blueprint for potential new customers, demonstrating the benefits and unique value propositions of our vertically integrated accommodations platform. These distinctive capabilities supported the Workforce Hub Contract announced in February, along with recent contract modification supporting community enhancements.

這種行之有效的營運模式是 Target 成功的關鍵，並已成為潛在新客戶的藍圖，展現了我們垂直整合住宿平台的優勢和獨特的價值主張。這些獨特的能力支持了二月份宣布的勞動力中心合同，以及最近支持社區增強的合同修改。

The increased scope of the contract, which raises the total contract value to approximately $154 million exemplifies Target's capacity to develop highly tailored solutions to meet specific customer needs. These enhancements underscore the importance of this community, and we see further opportunities for expanded contract scope and term extensions to support the development of this critical mineral supply chain. Target's bespoke solutions and unmatched capabilities in developing comprehensive remote workforce communities have supported the advanced contract discussions for our anticipated data center community. This contract further expands Target's end market reach and creates a new growth sector supporting the unprecedented growth in AI and data center construction. As we conclude contract discussions, we have started preliminary construction for this highly customized community and expect to share more details soon.

合約範圍的擴大使合約總價值達到約 1.54 億美元，體現了 Target 開發高度客製化解決方案以滿足特定客戶需求的能力。這些增強強調了這個社區的重要性，我們看到了擴大合約範圍和延長期限的進一步機會，以支持這一關鍵礦產供應鏈的發展。Target 在開發全面遠距勞動力社群方面的客製化解決方案和無與倫比的能力為我們預期的資料中心社群的高級合約討論提供了支持。該合約進一步擴大了Target的終端市場範圍，並創造了一個支援人工智慧和資料中心建設空前成長的新的成長部門。隨著合約討論的結束，我們已經開始對這個高度客製化的社區進行初步建設，並希望很快分享更多細節。

This rapidly growing market is driven by historic domestic investment and long-term growth trends. Since January 2025, more than $1.2 trillion has been committed to developing and enhancing technology infrastructure to support artificial intelligence and data centers. The scale in remote locations of these projects generate significant demand for comprehensive workforce hospitality solutions.

這個快速成長的市場是由歷史性的國內投資和長期成長趨勢所推動的。自2025年1月以來，已投入超過1.2兆美元用於開發和增強技術基礎設施，以支援人工智慧和資料中心。這些項目位於偏遠地區，規模龐大，對全面的勞動力接待解決方案的需求龐大。

As demonstrated by these recent contracts in advanced discussions, Target's distinctive ability to deliver integrated solutions aligns perfectly with the needs of remote workforce communities. These factors have created one of the most significant commercial growth pipelines we've seen in years.

正如最近在深入討論中簽訂的這些合約所表明的那樣，塔吉特提供綜合解決方案的獨特能力與遠端勞動力社區的需求完全契合。這些因素創造了我們多年來所見過的最重要的商業成長管道之一。

Our reputation as the leading provider of remote hospitality solutions uniquely positions Target to support this rapidly expanding end market demand. We are excited about these growth opportunities, which we believe establish a vital long-term commercial vertical aligned with Target's strategic growth objectives.

作為領先的遠端飯店解決方案供應商，我們的聲譽為 Target 提供了獨特的優勢，可滿足這一快速成長的終端市場需求。我們對這些成長機會感到非常興奮，我們相信這些機會建立了與 Target 策略成長目標一致的重要長期商業垂直領域。

Now moving to the Government segment. The reactivation of our Dilley, Texas assets remain on schedule with community ramp-up expected to be completed in September. The successful reopening of this facility highlights the importance of our decision to keep this community prepared to reopen alongside our partner.

現在轉向政府部門。我們位於德克薩斯州迪利的資產的重新啟動工作仍在按計劃進行，預計社區擴建將於 9 月完成。該設施的成功重新開放凸顯了我們與合作夥伴一起讓這個社區做好重新開放準備的決定的重要性。

Target's ability to quickly mobilize and respond to government demand has established a strong reputation for delivering unmatched solutions across various critical U.S. government immigration initiatives. These qualities form a solid foundation as Target continues to evaluate and pursue additional growth opportunities within the government sector. With the passage of the 2025 reconciliation bill in July, the U.S. government has allocated $45 billion towards specific border security initiatives, including expanding assets and bed capacity.

塔吉特能夠快速動員並響應政府需求，為美國政府的各項重要移民舉措提供無與倫比的解​​決方案，從而贏得了良好的聲譽。這些品質為 Target 繼續評估和尋求政府部門內的更多成長機會奠定了堅實的基礎。隨著7月2025年和解法案的通過，美國政府已撥款450億美元用於具體的邊境安全措施，包括擴大資產和床位容量。

These initiatives will require coordination among multiple federal agencies to identify the most effective ways to implement comprehensive operational solutions. Because of the broad scope of these efforts and the resources needed for proper execution, predicting the timing of a specific contract award is difficult. However, we are taking deliberate steps to demonstrate Target capabilities and believe there are multiple avenues to support these key policy initiatives.

這些措施需要多個聯邦機構之間的協調，以確定實施全面營運解決方案的最有效方法。由於這些工作範圍廣泛，且正確執行所需的資源，預測特定合約授予的時間很困難。然而，我們正在採取深思熟慮的措施來展示目標能力，並相信有多種途徑來支持這些關鍵的政策措施。

Regarding our West Texas assets, we remain encouraged by ongoing interest from the U.S. government in utilizing this readily accessible community. We have continued to host site visits with government officials and potential partners, receiving positive feedback. We remain confident in this community's ability to deliver a vital solution aligned with the government's policy objectives. While actively remarketing our West Texas assets, we are also exploring various strategies to develop innovative solutions that support immigration initiatives beyond Target's current asset portfolio and available beds.

關於我們在西德克薩斯州的資產，美國政府對利用這個交通便利的社區的持續興趣令我們感到鼓舞。我們繼續與政府官員和潛在合作夥伴進行實地考察，並獲得了積極的回饋。我們仍然相信這個社區有能力提供符合政府政策目標的重要解決方案。在積極重新行銷我們在西德克薩斯州的資產的同時，我們也正在探索各種策略來開發創新解決方案，以支持 Target 現有資產組合和可用床位之外的移民計劃。

Recently, we developed and proposed proprietary solutions to help the government urgently expand critical immigration housing infrastructure. These tailored and highly customized solutions have generated strong interest from government agencies and potential partners. We are optimistic about leveraging these innovative solutions to support their policy objectives.

最近，我們開發並提出了專有解決方案，以幫助政府緊急擴大關鍵的移民住房基礎設施。這些量身定制、高度客製化的解決方案引起了政府機構和潛在合作夥伴的濃厚興趣。我們對利用這些創新解決方案來支持他們的政策目標持樂觀態度。

In summary, the strength of our core accommodations platform and our distinctive capabilities have driven considerable progress towards key strategic goals. We are encouraged by the strongest growth pipeline we've seen in years, supported by an unprecedented domestic investment cycle and increasing demand within the government sector. We believe these opportunities offer multiple pathways to expand our business portfolio and continue advancing our strategic objectives. I'll now turn the call over to Jason to discuss our financial results in more detail.

總而言之，我們核心住宿平台的實力和獨特的能力推動了關鍵策略目標的長足進步。我們對多年來看到的最強勁的成長勢頭感到鼓舞，這得益於前所未有的國內投資週期和政府部門不斷增長的需求。我們相信這些機會為我們擴大業務組合和繼續推進策略目標提供了多種途徑。現在我將把電話轉給傑森，讓他更詳細地討論我們的財務結果。

Thank you, Brad. Second quarter total revenue was approximately $62 million with adjusted EBITDA of approximately $4 million. Our Government segment generated quarterly revenue of approximately $7 million. The declines from the previous year were primarily driven by the termination of the PCC contract effective February 21, 2025, and partially by the termination of the South Texas Family Residential Center contract on August 9, 2024. These declines were modestly offset by the reactivation of our Dilley, Texas assets effective March 5, 2025.

謝謝你，布拉德。第二季總營收約 6,200 萬美元，調整後 EBITDA 約 400 萬美元。我們的政府部門季度收入約為 700 萬美元。與前一年相比，收入下降主要是因為 PCC 合約於 2025 年 2 月 21 日終止，部分原因是南德克薩斯家庭住宅中心合約於 2024 年 8 月 9 日終止。自 2025 年 3 月 5 日起，我們重新啟動了位於德克薩斯州迪利的資產，這在一定程度上抵消了這些下降的影響。

As a reminder, this contract is based on fixed monthly revenue regardless of occupancy. It is expected to produce approximately $30 million in revenue in 2025, with over $246 million over its expected five-year term. However, as the community progressively reopens, 2025 monthly revenue will align with the reactivation of each neighborhood within the facility. Additionally, this gradual reopening will lead to lower margin contributions through the second and third quarters of 2025 before full reactivation occurs. We expect the community to be fully operational by September of 2025, at which point, we will see revenue and margin contributions consistent with the entire 2,400-bed community.

提醒一下，本合約是基於固定月收入，與入住率無關。預計到 2025 年，該項目將產生約 3,000 萬美元的收入，預計五年內將產生超過 2.46 億美元的收入。然而，隨著社區逐步重新開放，2025 年的月收入將與設施內每個社區的重新活化保持一致。此外，在全面恢復營運之前，這種逐步重新開放將導致 2025 年第二季和第三季的利潤貢獻降低。我們預計該社區將於 2025 年 9 月全面投入運營，屆時，我們將看到與整個 2,400 張床位的社區一致的收入和利潤貢獻。

Regarding our West Texas assets. As a reminder, we have decided to keep these assets in a ready state while actively remarketing. This decision, which is similar to our approach with the Dilley assets, will entail carrying costs of about $2 million to $3 million per quarter until a new contract is potentially awarded. Turning to our HFS and all other segments. These segments delivered quarterly revenue of approximately $39 million.

關於我們西德克薩斯的資產。提醒一下，我們決定在積極重新行銷的同時讓這些資產保持就緒狀態。這項決定與我們對 Dilley 資產採取的方法類似，將導致每季約 200 萬至 300 萬美元的持有成本，直到可能授予新合約為止。轉向我們的 HFS 和所有其他部分。這些部門的季度收入約為 3900 萬美元。

The scale of our HFS segment enables us to offer premium solutions across our network while maintaining substantial asset utilization in a competitive market. We will continue to balance network optimization with demand while identifying opportunities to enhance efficiencies and margin contribution.

我們的 HFS 部門的規模使我們能夠在整個網路中提供優質解決方案，同時在競爭激烈的市場中保持較高的資產利用率。我們將繼續平衡網路優化和需求，同時尋找提高效率和利潤貢獻的機會。

Moving on to the expanding Workforce Hospitality Solutions segment or WHS. This segment, which includes our Workforce Hub Contract, generated approximately $15 million in revenue in the second quarter, primarily related to construction activity. As announced today, the critical nature of this contract led to recent modifications and scope expansion, increasing its total contract value from $140 million to approximately $154 million.

持續擴大勞動力接待解決方案部門或 WHS。該部門包括我們的勞動力中心合同，在第二季度創造了約 1500 萬美元的收入，主要與建築活動有關。正如今天宣布的那樣，由於該合約的重要性，最近對其進行了修改並擴大了範圍，使其總合約價值從 1.4 億美元增加到約 1.54 億美元。

These community enhancements will lead to additional construction activity in 2025 and shift some previously expected services revenue into 2026. With the scope expansion, we now expect most construction revenue to be recognized in the third and fourth quarters of this year, with construction materially complete by the end of 2025. As we finish construction, we anticipate increased services revenue starting in 2026 and continuing through 2027. The scope expansion and contract modifications highlight the vital role of the Workforce Hub and the project success, and we see potential for further scope expansions and contract extensions. This demonstrates the advantages of our vertically integrated hospitality solutions and our ability to create long-term revenue streams supporting large-scale remote operations.

這些社區改善將帶來 2025 年的更多建設活動，並將一些先前預期的服務收入轉移到 2026 年。隨著範圍的擴大，我們現在預計大部分建築收入將在今年第三季和第四季確認，到 2025 年底建築將基本完工。隨著建設的完成，我們預計服務收入將從 2026 年開始增加，並持續到 2027 年。範圍的擴大和合約的修改凸顯了勞動力中心的重要角色和專案的成功，我們看到了進一步擴大範圍和延長合約的潛力。這證明了我們垂直整合的飯店解決方案的優勢以及我們創造支援大規模遠端營運的長期收入來源的能力。

Recurring corporate expenses for the quarter were approximately $10 million. As we progress through the year, we will continue exploring ways to optimize our cost structure and enhance margin contributions. Total capital spending for the quarter was approximately $6 million, primarily focused on enhancing asset capabilities within the Government segment aligned with our strategic growth initiatives. During the first half of 2025, Target's business fundamentals and durable operating model supported strong cash conversion, resulting in over $15 million of cash flows from operations. These fundamentals are reflected in the strength of our balance sheet and our ability to maintain substantial financial flexibility through prudent capital management. We ended the quarter with $19 million in cash and a net leverage ratio of 0.1 times.

本季經常性公司支出約 1,000 萬美元。隨著今年的進展，我們將繼續探索優化成本結構和提高利潤貢獻的方法。本季總資本支出約 600 萬美元，主要用於增強政府部門的資產能力，以符合我們的策略成長計畫。2025 年上半年，塔吉特的業務基本面和持久的營運模式支持了強勁的現金轉換，產生了超過 1,500 萬美元的營運現金流。這些基本面體現在我們資產負債表的強勁以及透過審慎的資本管理來保持相當財務靈活性的能力。本季末，我們的現金為 1,900 萬美元，淨槓桿率為 0.1 倍。

As of August 1, we have no outstanding borrowings under the company's $175 million revolving credit facility, providing total available liquidity of over $190 million, including approximately $23 million in cash. This robust liquidity position further enhances our financial flexibility as we evaluate a strong pipeline of growth opportunities. This momentum and positive operating environment, along with the expanded scope of the Workforce Hub Contract support our raised outlook for 2025, which now includes total revenue of $310 million to $320 million, and adjusted EBITDA of $50 million to $60 million.

截至 8 月 1 日，我們在公司 1.75 億美元循環信貸額度下沒有未償還借款，總可用流動資金超過 1.9 億美元，其中包括約 2,300 萬美元的現金。當我們評估強大的成長機會時，這種強勁的流動性狀況進一步增強了我們的財務靈活性。這種勢頭和積極的營運環境，加上勞動力中心合約範圍的擴大，支持了我們上調 2025 年的預期，目前總收入為 3.1 億至 3.2 億美元，調整後的 EBITDA 為 5,000 萬至 6,000 萬美元。

This raised outlook reflects a 15% increase in the midpoint revenue and a 6% increase in the midpoint adjusted EBITDA compared to our previous outlook. Target is well positioned with a flexible operating model and an optimized balance sheet as we continue to evaluate a robust growth pipeline, which we believe offers the greatest opportunity to accelerate value creation for our shareholders.

與我們先前的預測相比，這一上調的預測反映了中點收入成長 15%，中點調整後 EBITDA 成長 6%。隨著我們繼續評估強勁的成長管道，塔吉特憑藉著靈活的營運模式和優化的資產負債表處於有利地位，我們相信這為加速為股東創造價值提供了最大的機會。

Importantly, as we pursue these opportunities, we will stay focused on maintaining the strong financial profile we've built while optimizing margin contribution through our efficient operating structure. With that, I will hand it back to Brad for closing remarks.

重要的是，在我們尋求這些機會的同時，我們將繼續專注於維持我們已經建立的強勁財務狀況，同時透過我們高效的營運結構優化利潤貢獻。最後，我將把發言權交還給布拉德，請他做最後發言。

Thanks, Jason. In the first half of 2025, we have made significant progress towards achieving key elements of our strategic priorities, focused on expanding and diversifying our business portfolio. We announced two multiyear contracts serving diverse end markets and are finalizing contract discussions supporting the rapidly growing AI and data center end markets.

謝謝，傑森。2025 年上半年，我們在實現策略重點的關鍵要素方面取得了重大進展，重點是擴大和多樣化我們的業務組合。我們宣布了兩份服務於不同終端市場的多年期合約，並正在敲定支援快速增長的人工智慧和資料中心終端市場的合約討論。

Additionally, we see clear opportunities to enhance our growing contract portfolio with expanded service offerings and term extensions. We remain focused on maintaining this momentum as we evaluate our strongest growth pipeline in many years, comprising both commercial and government end markets.

此外，我們看到了透過擴大服務範圍和延長期限來增強我們不斷增長的合約組合的明顯機會。我們將繼續致力於保持這一勢頭，同時評估我們多年來最強勁的成長管道，包括商業和政府終端市場。

Importantly, this pipeline is supported by an unprecedented domestic investment cycle and continued strong demand in the Government sector. We are excited about these opportunities, underpinned by robust market fundamentals and secular momentum. We believe that our distinctive capabilities and unparalleled solutions position us well as we actively pursue these strategic growth initiatives designed to provide exceptional value to our shareholders. Thank you for joining us on the call today. And again, we appreciate your interest in Target Hospitality.

重要的是，該管道得到了前所未有的國內投資週期和政府部門持續強勁的需求的支持。我們對這些機會感到興奮，這些機會受到強勁的市場基本面和長期勢頭的支撐。我們相信，我們獨特的能力和無與倫比的解​​決方案使我們處於有利地位，因為我們積極推行這些旨在為股東提供卓越價值的策略性成長計劃。感謝您今天參加我們的電話會議。再次感謝您對 Target Hospitality 的關注。

We will now open the call for questions.

我們現在開始提問。

(Operator Instructions) Your first question comes from Scott Schneeberger from Oppenheimer. Please go ahead.

（操作員指示）您的第一個問題來自奧本海默的斯科特·施內伯格。請繼續。

Good morning. It's Daniel on for Scott. I just want to start on West Texas first. I mean you mentioned site visits. How should we think about the steps from here? How those discussions could progress? And the potential for this contract to be comparable to prior contracts at that side.

早安.丹尼爾代替斯科特上場。我只是想先從西德克薩斯州開始。我的意思是您提到了實地考察。我們該如何思考接下來的步驟？這些討論將如何進展？這份合約有可能與該方先前的合約相媲美。

I couldn't hear.

我聽不見。

Yeah, hey Daniel, this is Mark. So the question was just on West Texas timeline and the opportunities there?

是的，嘿丹尼爾，我是馬克。所以問題只是關於西德克薩斯州的時間表和那裡的機會？

Yes correct. Concerning the government, right, yeah.

是的，正確。關於政府，是的，是的。

Yeah, sorry, we couldn't quite hear you. Yeah.

是的，抱歉，我們聽不清楚。是的。

Timelines, still consistent with what we said, right?

時間線，還是跟我們說的一致吧？

We know that the reconciliation budget has been passed. But right now, we're not seeing that money flow. And what we do know is we're having some very good discussions continually with the government. We also have been told we're on their acquisition list. So as that starts, those funds start to flow.

我們知道和解預算已經通過。但目前，我們還沒有看到資金流動。我們確實知道的是，我們正在與政府進行一些非常好的討論。我們也被告知我們在他們的收購名單上。因此，當這一切開始時，這些資金就開始流動。

We don't know exactly where in line we're at, but we still feel very good on that facility as far as being leased and reactivated. There's -- nothing has changed in that. We continue to have different parts of the government out to view the property, take a look and continue positive statements around that. So we still feel really good about that as we get in the back half of the year.

我們不知道我們處於哪個隊列，但就租賃和重新啟用而言，我們仍然對該設施感到非常滿意。沒有什麼改變。我們繼續派遣政府不同部門來查看該房產，進行調查，並繼續就此做出積極的聲明。因此，當我們進入下半年時，我們對此仍然感到非常高興。

Got it, thank you. And then on the data center opportunity. How should we think about the -- I mean, we will get the economic details eventually. But how should we think about the structure there? Could that be comparable to the Workforce Hub Contract? And it sounds like the timing is imminent to that. But any more color you can provide there?

知道了，謝謝。然後是資料中心的機會。我們應該如何思考——我的意思是，我們最終會得到經濟細節。但是我們該如何看待那裡的結構呢？這與勞動力中心合約有可比性嗎？聽起來時機已經迫在眉睫。但是您還能提供更多顏色嗎？

Yes, sure. This is Jason. So I won't get into too much details. We hope to release more details for you in the near term. But I will say, on this deal, it will be a bit different than the Workforce Hub Contract because we're going to own the assets. And I would say, the margin on that typically is a bit higher than a services-only contract. So this is a lease and services agreement, not dissimilar to the Dilley structure.

是的，當然。這是傑森。所以我不會講太多細節。我們希望在不久的將來為您發布更多詳細資訊。但我要說的是，這筆交易與勞動力中心合約略有不同，因為我們將擁有資產。我想說的是，這種合約的利潤率通常比僅提供服務的合約高一點。所以這是一個租賃和服務協議，與 Dilley 結構並無不同。

And look, let me just -- Daniel, let me just add a little bit more to that and give you a little bit more color on this. But we're waiting on the final contract. What we do have is an early works contract where we're doing some work on the site. So I will tell you, this is imminent as far as this happening fairly quickly and starting to fully mobilize on that site. But I think at a higher level, I think it's probably a good time.

瞧，讓我——丹尼爾，讓我再補充一點，給你更詳細地講解一下。但我們正在等待最終合約。我們確實有一份早期工程合同，我們正在現場進行一些工作。所以我會告訴你，只要這件事發生得相當快並且開始在那個網站上全面動員起來，這件事就迫在眉睫了。但我認為從更高的層面來看，這可能是個好時機。

We've talked about the data centers the past couple of quarters. And this is really starting to ramp up. It has the ability to be what we would say is the game changer for our company. It's kind of a perfect storm when you look at what's happening in that business. Aside from all the capital spend that's already committed and weekly, more continues to be committed.

過去幾季我們一直在討論資料中心。而且這種情況確實開始加劇。我們說，它有能力改變我們公司的格局。如果你看看這個行業正在發生的事情，你會發現這真是一場完美風暴。除了每週已經承諾的所有資本支出外，還有更多資金持續投入。

But if you look across the U.S., these are going in everywhere. Not everyone kind of -- or not every project fits the Target Hospitality mold, but more and more continue to fit that. What's happening is in a lot of these local communities, they're being voted down. They're bringing -- they're taking on so much power, so much water. It's a massive amount of people coming into the town over a 3 year, 4 year, 5 year, 6 year, 7 year period on the construction cycle, right?

但如果你放眼美國，這些現象隨處可見。並不是每個人——或者不是每個項目都適合 Target Hospitality 模式，但越來越多的項目繼續適合這種模式。目前的情況是，在許多地方社區，他們的選票都被否決了。他們帶來了——他們吸收瞭如此多的電力和水。在施工週期的 3 年、4 年、5 年、6 年、7 年內，大量的人湧入這個城鎮，對嗎？

So these developers are being forced out into more and more remote location. These developers are fighting each other over labor. Labor is very hard to get. So when I talk about a perfect storm, it's exactly what we went through in my history in this business, where these huge booms, and lots of money being committed.

因此這些開發商被迫遷移到越來越偏遠的地方。這些開發商正在為爭奪勞動力而互相爭鬥。勞動力非常難找。因此，當我談到完美風暴時，這正是我們在這個行業中經歷過的，這些巨大的繁榮和大量的資金投入。

And it's in these remote areas where we come in and help in that. We deliver the housing, we deliver the services, we help them retain and attract the workforce because it's very competitive. So we've got our first one under contract, which we'll finalize very soon and many more in the pipeline. But I'm not sure we've talked about the scale of this like I'm telling you today. It's massive.

我們就是來到這些偏遠地區並提供協助。我們提供住房、提供服務，並幫助他們留住和吸引勞動力，因為競爭非常激烈。我們已經簽訂了第一份合同，很快就會完成，還有更多的合約正在籌備中。但我不確定我們是否像我今天告訴你們的那樣討論過這個問題的規模。它非常龐大。

Our pipeline continues to fill up. Yes, we need to close some of them, but we have some near term and some longer term that we're working on. And again, very excited internally because of the things that it can do for us. And it's exactly what we've done over the years in the oil and gas, in the mining, but on a much larger scale.

我們的管道繼續被填滿。是的，我們需要關閉其中一些，但我們正在努力解決一些短期和長期問題。而且，我們內心非常興奮，因為它能為我們做的事情。這正是我們多年來在石油、天然氣和採礦業所做的事情，但規模要大得多。

Got it. Excellent caller, thank you so much.

知道了。非常好的來電者，非常感謝。

Thank you. (Operator Instructions) And your next question comes from Stephen Gengaro from Stifel. Please go ahead.

謝謝。（操作員指示）您的下一個問題來自 Stifel 的 Stephen Gengaro。請繼續。

Thanks. Good morning, everybody. Brad, if I could ask, when you think about these data center contracts as sort of the duration. So when I think about oil and gas, it's kind of this great network approach, right, where you have people moving around, but you house them for someone like Halliburton over time. Is this more like a permanent multiyear facility where workers will be in the same spot for years? Or is this kind of more of a shorter-term network approach, which kind of just a lot of demand out there that will continue to fill that?

謝謝。大家早安。布拉德，如果我可以問的話，您認為這些資料中心合約的期限是怎樣的。所以當我想到石油和天然氣時，它就是一種偉大的網路方法，對吧，你讓人們四處走動，但隨著時間的推移，你會為哈里伯頓這樣的公司安置他們。這是否更像是一個永久性的多年期設施，工人們將在同一個地方工作多年？或者這更像是一種短期網路方法，只是有大量的需求需要繼續滿足？

It's your first statement, right? A large amount of workforce in one location for many years. If you see some of these that they're doing, that they're putting out in the press, first, they need the power and they need the water. And then what they say is we've got a build-out of 7 years.

這是你第一次發表聲明，對嗎？大量勞動力在一個地方工作多年。如果你看到他們正在做的一些事情，他們在媒體上發表的報道，首先，他們需要電力，他們需要水。然後他們說我們已經有 7 年的建造時間了。

We're going to start with two, they get those leased, and they continually build another 2two, another four as they get the commitment, very similar to the gas when they build a pipeline. They get the commitments and they continue to fill it. But these are longer term. And huge multibillion dollar projects in that one location where we're a very small part of the spin, but a huge critical piece of making success for them, and staying on budget and staying on timeline. Without us in some of these locations, especially with this first one, they just couldn't get the job done.

我們將從兩條管道開始，他們先租用這些管道，然後隨著獲得承諾，他們會繼續建造另外兩條、另外四條管道，這與他們建造天然氣管道時的情況非常相似。他們得到了承諾並繼續履行承諾。但這些都是長期的。在那個地方，我們雖然只參與了數十億美元的大型項目，但對於項目的成功、控制預算和按時完成，卻起著至關重要的作用。如果沒有我們在某些​​地方，特別是第一個地方，他們就無法完成工作。

And we're just seeing more and more of these going remote, getting closer to the power storage, closer to the water storage, being forced out of the bigger cities. And it fits right in our wheelhouse on these.

我們看到越來越多的太陽能光電廠走向偏遠地區，越來越靠近電力儲存設施和水資源儲存設施，被迫遷出大城市。它正好適合我們的駕駛室。

Thank you. And if I could tie that into the oil and gas for a second. When we think about clearly drilling and completion activity is weak. It looks like there's some level of maybe a bit lower norm for a while as OPEC works through excess capacity and rigs and completion activity is much more efficient with less people out there. Are you -- like what's the source of beds for the data centers? Is it taking from the oil and gas network? Is it incremental CapEx? Is it a combination of both? Is it the Pecos Contract, does it come down? How do we think about the beds?

謝謝。如果我可以將其與石油和天然氣聯繫起來的話。當我們思考時，顯得鑽井和完井活動很弱。由於石油輸出國組織 (OPEC) 正在努力解決過剩產能，並且由於人員減少，鑽井和完井活動的效率更高，因此一段時間內可能會出現某種程度的較低標準。您是否知道資料中心的床位來源是什麼？是從石油和天然氣網路中取得的嗎？這是增量資本支出嗎？是兩者的結合嗎？這是Pecos合約嗎，它會下降嗎？我們如何看待這些床？

Yes. It's the same way we've always thought about it in our business. We look at any excess capacity and try to utilize that first. We wouldn't be, if you will, mothballing the oil and gas side of the business. It's a great business.

是的。我們在經營業務時也一直以同樣的方式思考這個問題。我們會考慮任何過剩產能並嘗試先利用它。如果您願意的話，我們不會停止石油和天然氣業務。這是一門偉大的生意。

We have to have a certain number of rooms out there. But we do have some excess capacity out there that's not being used that we would first utilize on the data center. Secondly, we would look in the open market to buy. And then we would look to build new. What I would tell you, look, the amount of work that's out there, that's on our radar would absolutely in the future have us buying new products.

我們必須在那裡有一定數量的房間。但我們確實有一些尚未使用的過剩容量，我們會先在資料中心利用這些容量。其次，我們會在公開市場上尋找購買。然後我們會考慮建造新的。我想告訴你的是，你看，我們所關注的工作量絕對會讓我們在未來購買新產品。

In short, the amount of work in our pipeline that is very real and actionable. And if we get a few of these, we would absolutely have to go and buy because they're massive, and it's all over the U.S. So we would run out of equipment. That's a high-class problem, a good one.

簡而言之，我們管道中的工作量非常真實且可操作。如果我們得到其中的幾個，我們就必須去購買，因為它們數量龐大，而且遍布美國各地。所以我們會用完設備。這是一個高級問題，一個好問題。

We're okay with that, we have the capital structure to make that happen.

我們對此沒有異議，我們擁有實現這一目標的資本結構。

And that will all be built into the economics of that opportunity that's appropriate.

而這一切都將融入適當的機會經濟學。

And great counterparties on these, huge companies, so..

這些都有很好的交易對手，大公司，所以......

Okay. And then just one quick follow-on. Back in, 2019. I think the numbers that we were using was about $50,000 per bed. Is that still a reasonable number given the inflationary environment, et cetera, if you do need to ultimately add capacity or is it too early to tell?

好的。然後只需快速跟進一下。時間回到2019年。我認為我們使用的數字是每張床約 50,000 美元。如果最終確實需要增加產能，考慮到通膨環境等，這個數字是否仍然是合理的，還是現在判斷為時過早？

Like I haven't seen anything stay the same price since 2019 after COVID and everything. So I would tell you that probably goes up. I mean -- but where that's at, we're not going to divulge kind of where we're at on a cost right now per bed. But what I would lean back into is what Jason said. What it will be is rolled into our economics, whether that's $50,000, $60,000, $70,000 room, we're going to make sure that the economics work. And more so kind of how our HFS and that type of stuff looks higher economics than what you're seeing on an LAC project for sure.

就像我沒見過任何東西自 2019 年疫情後價格保持不變一樣。所以我會告訴你，這個數字可能會上升。我的意思是——但是，我們不會透露目前每張床位的成本。但我想回顧一下傑森所說的話。無論是 50,000 美元、60,000 美元還是 70,000 美元的空間，我們都會將其納入我們的經濟體系，確保經濟能夠正常運作。更重要的是，我們的 HFS 和類似的東西看起來比你在 LAC 專案上看到的更具經濟效益。

Great, I appreciate the color Brad, thank you.

太好了，我很欣賞布拉德的顏色，謝謝。

Thank you. And next question comes from Greg Gibas from North Securities. Please go ahead.

謝謝。下一個問題來自 North Securities 的 Greg Gibas。請繼續。

Great. Good morning, Brad and Jason, nice to hear that near finalization of the data center community contract. Wanted to follow up there in terms of like how competitive the bidding was for that contract and maybe the key factors that led them to select Target?

偉大的。早安，布拉德和傑森，很高興聽到數據中心社區合約即將完成的消息。想跟進一下該合約的競標競爭力如何，以及促使他們選擇 Target 的關鍵因素是什麼？

Yes. Look, I would tell you it was -- they checked our numbers, right? But when you look at the scale of some of these, the ability to move fast when you're talking billion dollar projects that they're building, we become, again, a small piece of the spend. So it doesn't come down to saving a few bucks on a room. They look at, can you get the job done, can you help us retain and attract the workforce that we need.

是的。聽著，我會告訴你——他們檢查了我們的數字，對吧？但是，當你看到其中一些項目的規模時，當你談論他們正在建造的數十億美元的項目時，你會發現，我們只是支出中的一小部分。所以這不是為了要省下房間的幾塊錢。他們會看你能否完成工作，能否幫助我們留住和吸引所需的勞動力。

So it's not so much a price point, right, which is exactly what we like. It's, can you get it done? Can you deliver what you said you're going to deliver on time? And that's really where this went. Was it competitive?Sure. They're always competitive. But this wasn't a price-driven exercise. And we're not seeing a lot of price-driven exercises on the -- because we have many more of this that we -- or many more of these that we're looking at.

所以這不是一個價格點，對吧，這正是我們喜歡的。是啊，你能完成嗎？您能準時交付您說過要交付的東西嗎？事情的真相就是這樣的。有競爭力嗎？當然。他們總是充滿競爭力。但這並不是價格驅動的活動。我們沒有看到很多受價格驅動的活動 - 因為我們有更多這樣的活動 - 或者說我們正在關注的更多這樣的活動。

Great. That's very helpful and good to hear. Wondering if I could get a little bit more color on kind of the puts and takes relative to the updated guidance. I know not a big change, but there -- you mentioned the positive momentum, positive environment and then some changes to the Workforce Hub Contract. Just wondering what's changed regard to that? What's implied in the updated guidance ranges?

偉大的。這非常有幫助，我很高興聽到這個消息。我想知道我是否可以對更新後的指南中的看跌期權和看漲期權有更多的了解。我知道這不是什麼大的變化，但是——你提到了積極的勢頭、積極的環境以及勞動力中心合約的一些變化。只是想知道這方面有什麼改變？更新後的指導範圍暗示了什麼？

Yes. So the two main drivers of the guidance update, the lead driver on the revenue side for sure is the Workforce Hub Contract expansion. So now the total contract value has increased from $140 million to $154 million, driven by construction activity. So that construction activity has expanded. We still anticipate the construction activity to be completed this year.

是的。因此，指導更新的兩個主要驅動因素是收入方面的主要驅動因素肯定是勞動力中心合約擴展。因此，在建築活動的推動下，合約總價值現在已從 1.4 億美元增加到 1.54 億美元。因此建築活動擴大了。我們仍然預計該建設活動將於今年完成。

Timing has shifted a little bit. But that's sort of the main driver behind the guidance, particularly on the revenue side. And then we also had that PCC Contract wrap-up settlement as well that played into the guidance. And that's -- those are the two primary drivers behind the outlook increase.

時間稍有改變。但這可以說是指導背後的主要驅動力，特別是在收入方面。然後，我們也進行了 PCC 合約總結結算，這也符合指導要求。這就是前景成長的兩個主要驅動因素。

Greg, I know jumping on Jason here. But again, this quarter, a little bit of noise, right, that I'll say this. It kind of cleans itself up as we move through the year and get into 2026 as well. So not really much to pay attention to as far as the noise here. It's kind of a tale of two stories, right?

格雷格，我知道這是在攻擊傑森。但是，這個季度，有一點噪音，對，我會這麼說。隨著我們度過這一年並進入 2026 年，這種情況也會逐漸得到改善。因此，這裡的噪音其實沒什麼好關注的。這有點像是兩個故事的故事，對吧？

We've seen where this was going. We kind of predicted this other than the timing. But the project got a lot larger, right? We're happy to move that to the right for the customer and help them, but the project continues to grow. And then our numbers get better as we roll through the year, especially as we add new projects.

我們已經知道事情會如何發展。除了時間之外，我們對此有所預測。但專案規模變大了，對吧？我們很高興將其移至客戶的權利並為他們提供幫助，但專案仍在繼續發展。隨著時間的推移，我們的業績會越來越好，特別是隨著我們增加新的項目。

Yes, very helpful. Appreciate it, guys. And then if I could just follow up on West Texas assets. I'm not sure if there's that much more you can share there. But how would you maybe characterize the interest from the government agencies relative to last quarter, if that's changed at all?

是的，非常有幫助。非常感謝，夥計們。然後我是否可以跟進西德克薩斯的資產。我不確定您是否還有更多內容可以分享。但是，如果情況有所改變，您如何描述政府機構相對於上一季的興趣？

It has not waned at all, right? Still very high. And to be honest, it's gotten a little higher because they got their budget approved, right? So there's more firm discussions about what they're trying to do. But I will tell you, the government -- and this is not a knock, they just have so much that they're trying to do, right?

它一點都沒有減弱，對吧？仍然很高。老實說，由於他們的預算得到了批准，所以價格有所上漲，對嗎？因此，他們就自己正在嘗試做的事情進行了更堅定的討論。但我會告訴你，政府——這不是打擊，他們只是有很多事情要做，對吧？

And we know they've got the money. And I think some folks thought, well, they got the money, they'll start writing checks the next day. That's just not how it works. It takes time for it to get appropriated, for it to flow out the doors. So we think we start to see that in the back half of the year.

我們知道他們有錢。我認為有些人會想，好吧，他們拿到了錢，第二天就可以開始開支票了。但事實並非如此。它需要時間來被佔用並向門外。因此我們認為我們將在今年下半年開始看到這種情況。

What hasn't changed is their need for at least 100,000 beds, right? So they have to add a lot of beds in that. And we are still squarely in the mix there, not only on our West Texas assets. And I'm going to take this time, we mentioned the proprietary facility that we've built. The government came and inspected it.

不變的是，他們至少需要 10 萬張床位，對嗎？所以他們必須增加很多床位。我們仍然穩居該領域，不僅僅是在西德克薩斯州的資產上。這次我要提到我們已經建造的專有設施。政府來視察了。

The name of that is SecureFlex. That's the trademark name of this. It's a great product. The government is excited about it. It gives us another optionality with them that they've looked at, and we've quoted on some new builds for them for part of this 100,000 room expansion that they're trying to do or to get to 100,000 rooms.

它的名字是 SecureFlex。這就是它的商標名稱。這是一個很棒的產品。政府對此感到興奮。這為我們提供了他們所考慮的另一種選擇，我們已經為他們正在嘗試進行的 100,000 間客房擴建計劃的一部分或達到 100,000 間客房的目標提供了一些新建項目的報價。

So we think this new product really helps us as we continue to move forward, not only with the federal, but if the state needs it as well. So some good stuff going on in the government aside from just the West Texas asset, lots of opportunity out there.

因此，我們認為這款新產品確實對我們繼續前進有所幫助，不僅對聯邦政府有幫助，而且如果州政府有需要的話。因此，除了西德克薩斯州的資產之外，政府正在進行一些好事，那裡有很多機會。

Yeah, that's great to hear. Thanks very much, guys.

是的，聽到這個消息真是太好了。非常感謝，大家。

Thank you. There are no further questions at this time. Mr. Brad Archer, you may proceed with your conference.

謝謝。目前沒有其他問題。布拉德·阿徹先生，您可以繼續您的會議了。

Yes. Thanks for joining us on the call today, and we look forward to talking to you next quarter. I'll turn the call back over.

是的。感謝您今天參加我們的電話會議，我們期待下個季度與您交談。我會把電話轉回去。

Thank you. Ladies and gentlemen, this does conclude your conference call for today. We thank you very much for your participation. You may now disconnect your lines. Have a great day.

謝謝。女士們、先生們，今天的電話會議到此結束。我們非常感謝您的參與。現在您可以斷開線路了。祝你有美好的一天。