Target Hospitality Corp. (TH) 2026 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Target Hospitality first quarter 2026 earnings conference call. (Operator Instructions)

各位女士、先生，早安，歡迎參加 Target Hospitality 2026 年第一季財報電話會議。(接線員指示)

I would now like to turn the conference call over to Mark Schuck. Please go ahead.

現在我想將電話會議交給 Mark Schuck。請開始。

Thank you. Good morning, everyone, and welcome to Target Hospitality's first quarter 2026 earnings Call. The press release we issued this morning outlining our first quarter results is available in the Investors section of our website. In addition, a replay of this call will be archived on our website for a limited time. Please note the cautionary language regarding forward-looking statements contained in the press release.

謝謝。各位早安，歡迎參加 Target Hospitality 2026 年第一季財報電話會議。我們今天早上發布的新聞稿概述了第一季業績，已可於我們網站的「投資人」專區取得。此外，本次電話會議的重播將在我們網站上存檔一段有限時間。請注意新聞稿中關於前瞻性陳述的警示性用語。

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, May 11, 2026. 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.

同樣的用語也適用於今天電話會議中的陳述。本次電話會議將包含具時效性的資訊以及前瞻性陳述，且僅在今天（2026 年 5 月 11 日）為準確。除非適用法律要求，Target Hospitality 明確聲明不負有更新或修訂本次電話會議所含資訊以反映今日之後可能發生之事件或情況的任何義務。

For a complete list of risks and uncertainties that may affect future performance, please refer to Target Hospitality's periodic filings with the SEC. 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.

如需可能影響未來表現之風險與不確定性的完整清單，請參閱 Target Hospitality 向美國證券交易委員會（SEC）提交的定期申報文件。我們將在今天的電話會議中討論非 GAAP 財務衡量指標。請參閱我們網站「投資人」專區所發布的財報新聞稿中的表格，以查閱今天電話會議所提及之非 GAAP 財務衡量指標與其對應 GAAP 指標之調節表。

Leading the call today will be Brad Archer, President and Chief Executive Officer followed by Jason Vlacich, Chief Financial Officer. After their prepared remarks, we will open the call for questions.

今天的電話會議將由總裁兼執行長 Brad Archer 主持，接著由財務長 Jason Vlacich 發言。在他們的準備發言之後，我們將開放提問。

I'll now turn the call over to our Chief Executive Officer, Brad Archer.

現在我把電話會議交給我們的執行長 Brad Archer。

Thanks, Mark. Good morning, everyone, and thank you for joining us on the call today. We delivered a strong first quarter with continued progress on our strategic transformation and sustained momentum executing on recent contract awards.

謝謝你，Mark。各位早安，感謝今天加入我們的電話會議。我們第一季表現強勁，在策略轉型方面持續取得進展，並在近期合約得標的執行上維持動能。

Our focus remains straightforward: deliver for customers, scale responsibly and continue pivoting the portfolio towards durable, high-value end markets, where our integrated operating model and speed-to-market capabilities create clear competitive advantages.

我們的重點仍然很明確：為客戶交付成果、負責任地擴張規模，並持續將投資組合轉向具韌性、高價值的終端市場；在這些市場中，我們的整合式營運模式與快速上市能力可創造明確的競爭優勢。

Since February 2025, we have secured more than $2 billion of multiyear contracts, including approximately $1.8 billion in our rapidly expanding WHS segment. These wins underscore the strength of our differentiated service offering and validate our ability to pivot and expand our contract portfolio across strategic end markets. This momentum is being driven by powerful long-term demand dynamics supported by a multitrillion dollar investment cycle led by AI-driven data centers and related critical infrastructure development.

自 2025 年 2 月以來，我們已取得超過 20 億美元的多年期合約，其中約 18 億美元來自我們快速擴張的 WHS 事業部門。這些勝利凸顯我們差異化服務方案的實力，並驗證我們有能力在策略性終端市場中調整方向並擴大合約組合。這股動能來自強勁的長期需求動態，其背後支撐為由 AI 驅動資料中心及相關關鍵基礎建設開發所帶動、規模達數兆美元的投資循環。

We believe our target Hyper/Scale platform and vertically integrated operating model uniquely positions us to help customers execute on this unprecedented build-out and become an increasingly critical component of overall project success.

我們相信，我們的 Target Hyper/Scale 平台與垂直整合的營運模式具備獨特優勢，能協助客戶執行這項前所未有的建置擴張，並成為整體專案成功中愈發關鍵的一環。

Together, these elements support an active and expanding growth pipeline exceeding 20,000 beds, providing a strong foundation to continue advancing our strategic growth initiatives.

綜合而言，這些要素支撐一個活躍且持續擴大的成長管線，規模超過 20,000 張床位，為我們持續推進策略性成長計畫奠定堅實基礎。

Turning to our segment and the continued execution on our strategic transformation. Our HFS South segment continues to deliver premium hospitality solutions to a base of world-class customers across our expansive network. These customers benefit from the scale of our network, which provides flexibility to support their dynamic workforce allocation needs. At the same time, they find added value in the consistency and reliability of hospitality solutions delivered across our communities. This performance is reflected in customer renewal rates that consistently exceed 90%, reinforcing both the strength of our relationships and our ongoing commitment to serving these customers.

接著談到我們的事業部門，以及策略轉型的持續執行。我們的 HFS South 事業部門持續透過廣泛的網絡，為一流客戶群提供高品質的款待解決方案。這些客戶受益於我們網絡的規模，能提供彈性以支援其動態的人力配置需求。同時，他們也在我們各社區所提供之款待解決方案的一致性與可靠性中獲得額外價值。此表現反映在客戶續約率持續超過 90%，進一步強化我們關係的穩固，以及我們持續服務這些客戶的承諾。

Now moving to our Workforce Hospitality Solutions segment. Our WHS segment continues to expand as we execute on recent contract win and benefit from strong industry momentum across AI-driven data center and related critical infrastructure development. These end markets are supported by long duration demand and we believe our operating model positions us well to deliver where speed, reliability and on-site execution are essential.

現在轉到我們的 Workforce Hospitality Solutions（WHS）事業部門。我們的 WHS 事業部門持續擴張，因我們正執行近期合約得標，並受惠於 AI 驅動資料中心及相關關鍵基礎建設開發所帶來的強勁產業動能。這些終端市場受到長期需求支撐，我們相信我們的營運模式使我們能在速度、可靠性與現場執行至關重要的情境下有效交付。

These dynamics support today's announcement of our AI infrastructure community, further reinforcing our confidence in the expanding opportunity set ahead. This community, once complete, will support over 3,300 individuals and positions us to deepen our presence in the accelerating AI-driven capital investment cycle. We believe this momentum will continue to translate into additional multiyear contract awards as we leverage our differentiated platform to capture growing demand. As AI-driven infrastructure development expands into more remote geographies, the need for high-quality workforce accommodations and integrated services becomes increasingly critical to project success.

這些動態支撐我們今天宣布的 AI 基礎建設社區計畫，進一步強化我們對未來擴大機會集合的信心。該社區完工後將可支援超過 3,300 名人員，並使我們得以在加速中的 AI 驅動資本投資循環中深化布局。我們相信，隨著我們運用差異化平台掌握成長需求，這股動能將持續轉化為更多多年期合約得標。隨著 AI 驅動的基礎建設開發擴展至更偏遠的地理區域，高品質的勞動力住宿與整合式服務對專案成功的重要性日益提升。

Target Hyper/Scale is purpose-built to meet this demand by delivering tailored scalable solution that can evolve across multiyear time lines, providing customers with a single partner to solve complex mobilization, housing and on-site service challenges. With over two-third of all planned nationwide data center development centered in rural areas, we continue to see a steady backfilling of organic growth opportunity across these rapidly expanding end markets. Target's embedded presence in many of these regions, along with our customer-centric model creates a differentiated competitive advantage.

Target Hyper/Scale 為滿足此需求而量身打造，透過提供可客製、可擴充的解決方案，並可在多年期時程中演進，讓客戶以單一合作夥伴解決複雜的動員、住宿與現場服務挑戰。由於全國規劃中的資料中心開發有超過三分之二集中於鄉村地區，我們持續看到在這些快速擴張的終端市場中，穩定回補的有機成長機會。Target 在許多此類地區的深度在地布局，加上以客戶為中心的模式，形成差異化的競爭優勢。

Together, these strengths allow us to deliver highly customizable, scalable solutions supported by a vertically integrated platform enabling rapid mobilization, efficient operations and consistent service quality that help keep critical projects on schedule while creating a compelling value proposition for Target. This differentiated positioning is reinforced by our ability to execute at scale.

綜合而言，這些優勢使我們能提供高度可客製、可擴充的解決方案，並由垂直整合的平台支撐，實現快速動員、高效率營運與一致的服務品質，協助關鍵專案按期推進，同時為 Target 創造具吸引力的價值主張。我們能以規模化執行的能力，進一步強化了這項差異化定位。

As we deliver on recent contract wins and advance an active growth pipeline, we maintain clear visibility into securing additional fleet to support customer needs on compressed time lines. With a diversified North America-based supplier network, we have the flexibility to expand inventory in line with demand while maintaining disciplined capital allocation. Our execution underpins our confidence in the path ahead.

在我們交付近期合約得標並推進活躍的成長管線之際，我們對於取得額外車隊以支援客戶在緊縮時程下的需求，仍保持清晰能見度。憑藉多元化的北美供應商網絡，我們具備彈性可隨需求擴充存量，同時維持嚴謹的資本配置紀律。我們的執行力支撐我們對未來路徑的信心。

We remain focused on converting recent contract wins into durable performance while advancing our strategic transformation and sustaining momentum in our rapidly expanding WHS segment with strong customer demand and active discussions representing more than 20,000 beds, we believe Target is well positioned to drive long-term value creation through our focused strategic growth initiatives.

我們仍專注於將近期合約得標轉化為可持續的績效，同時推進策略轉型，並在快速擴張的 WHS 事業部門中維持動能；在強勁客戶需求與活躍洽談（代表超過 20,000 張床位）的支持下，我們相信 Target 已具備良好條件，透過聚焦的策略性成長計畫推動長期價值創造。

I will now hand the call over to Jason to discuss our financial results and the increased 2026 outlook in more detail.

接下來我將把電話會議交給 Jason，由他更詳細說明我們的財務結果以及上調後的 2026 年展望。

Thank you, Brad. First quarter total revenue was approximately $73 million with adjusted EBITDA of approximately $10 million. The first quarter of 2026 marked a transitional period for Target with margins temporarily compressed as we incurred elevated operating expenses for services, mobilization and construction activities driven by the rapid expansion of our WHS segment.

謝謝你，Brad。第一季總營收約為7,300萬美元，調整後EBITDA約為1,000萬美元。2026年第一季對Target而言是過渡期；由於WHS業務快速擴張所帶動的服務、動員與施工活動，使我們承擔較高的營運費用，導致利潤率暫時受到壓縮。

As we continue to execute the most successful contracting period in Target's history and bring recent WHS contracts awards online, we expect revenue and adjusted EBITDA to build through 2026 and into 2027. Over this period, we also anticipate consistent and sustained margin expansion supported by the strong underlying unit economics of our WHS contract.

隨著我們持續推進Target史上最成功的簽約期，並將近期獲得的WHS合約獎項陸續上線，我們預期營收與調整後EBITDA將在2026年並延續至2027年逐步提升。在此期間，我們也預期在WHS合約強勁的單位經濟效益支撐下，利潤率將持續且穩定地擴張。

Turning to our segments. Our HFS South segment generated approximately $33 million in quarterly revenue. Customers in this segment continue to value our premium service offerings and expansive network, which delivers reliable, consistent hospitality solutions aligned with their evolving labor allocation needs. While we experienced some moderation in our HFS South segment, the network continues to deliver strategic value through its established presence in high activity regions, consistent cash flows and its ability to support our long-standing customer base.

接著看各事業部門。HFS South事業部本季營收約為3,300萬美元。該事業部的客戶持續重視我們的高端服務方案與廣泛網絡，能提供可靠且一致的住宿接待解決方案，並符合其不斷演變的人力配置需求。儘管HFS South事業部出現一定程度的放緩，我們的網絡仍憑藉其在高活動區域的既有布局、穩定現金流，以及支援長期客戶群的能力，持續提供策略價值。

Moving to the rapidly expanding WHS segment. Our WHS segment generated approximately $24 million of quarterly revenue driven by recent contract awards, including the Data Center Community and West Texas Power community with additional contributions from the Workforce Hub contract as activity continues to shift from the construction phase into the services phase. We continue to experience strong customer demand across this segment, supported by accelerating industry activity across AI infrastructure and data center development. This momentum has supported 2 multiyear contract awards since April, representing over 7,000 beds which combined are expected to generate approximately $1.3 billion of multiyear revenue over their initial term.

再來看快速擴張的WHS事業部。WHS事業部本季營收約為2,400萬美元，主要由近期合約獎項帶動，包括資料中心社區（Data Center Community）與西德州電力社區（West Texas Power community），此外，隨著活動持續由施工階段轉入服務階段，Workforce Hub合約亦帶來額外貢獻。在AI基礎設施與資料中心開發的產業活動加速之下，本事業部持續呈現強勁客戶需求。此一動能自4月以來促成2項多年期合約獎項，合計超過7,000張床位，預期在其初始合約期間合計可創造約13億美元的多年期營收。

In April, we announced the 4,000-bed data center hub contract, which is expected to generate approximately $550 million of revenue over its initial term of approximately 5 years. As a reminder, we anticipate first occupancy at this community in the second half of 2026 with full completion anticipated by mid-2027.

4月，我們宣布一項4,000床位的資料中心樞紐（hub）合約，預期在約5年的初始期間可創造約5.5億美元營收。提醒一下，我們預期該社區將於2026年下半年迎來首次入住，並預計於2027年年中全面完工。

And today, we announced the AI Infrastructure Community, which will be capable of supporting approximately 3,300 individuals and is expected to generate over $750 million of revenue over its 4-year term. We anticipate first occupancy at this community later in 2026 with full completion anticipated by mid-2027.

而在今天，我們宣布AI基礎設施社區（AI Infrastructure Community），可支援約3,300人，並預期在4年合約期間創造超過7.5億美元營收。我們預期該社區將於2026年稍晚迎來首次入住，並預計於2027年年中全面完工。

The AI Infrastructure Community will predominantly consist of new assets, resulting in a net capital investment of approximately $200 million to $210 million, with roughly 95% expected to be incurred in 2026. As these communities ramp and other recently announced WHS contracts continue to scale, we expect margin contribution across this segment to improve as we capture greater efficiencies from our fully integrated operating model and strong unit economics.

AI基礎設施社區將主要由新資產構成，因此淨資本投資約為2.0億至2.1億美元，其中約95%預期將於2026年發生。隨著這些社區逐步爬坡，以及其他近期宣布的WHS合約持續擴張，我們預期本事業部的利潤貢獻將改善，因為我們可從完全整合的營運模式與強勁的單位經濟效益中取得更高效率。

With the rapid expansion of this segment and increasing contributions from these contract awards, we expect WHS to become Target's largest operating segment for full year 2026. Our Government segment generated approximately $13 million in revenue during the quarter. The decline compared to the previous year were driven by the termination of the PCC contract, partially offset by the reactivation of our Dilley, Texas assets.

隨著該事業部快速擴張，且這些合約獎項的貢獻日益增加，我們預期WHS將在2026全年成為Target最大的營運事業部。政府事業部本季營收約為1,300萬美元。相較去年同期的下滑，主要由PCC合約終止所致，但部分被我們位於德州Dilley資產的重新啟用所抵銷。

Additionally, we incurred certain community operating expenses related to assets successfully redeployed from our Government segment to support recently announced WHS contract awards, which compressed segment margins during the quarter. We expect to incur approximately $5 million to $7 million of transitional costs associated with ongoing network optimization initiatives over the next two quarters, which we anticipate will temporarily pressure the government segment margin.

此外，我們亦發生若干社區營運費用，與成功自政府事業部重新部署資產以支援近期宣布的WHS合約獎項相關，進而壓縮本季該事業部的利潤率。我們預期未來兩個季度將因持續進行的網絡優化計畫而產生約500萬至700萬美元的過渡成本，並預期將暫時對政府事業部利潤率造成壓力。

Corporate expenses were approximately $15 million for the quarter. As we continue advancing Target's strategic growth initiatives, we remain focused on managing corporate costs prudently while ensuring we have the resources needed to execute effectively.

本季公司費用約為1,500萬美元。在我們持續推進Target的策略性成長計畫之際，我們仍專注於審慎管理公司成本，同時確保具備有效執行所需的資源。

Accordingly, our 2026 outlook reflects modest increases in corporate expenses to support these growth initiatives over the coming quarters. Total capital spending for the quarter was approximately $46 million, focused on growth in our WHS segment, including the Data Center Community expansions.

因此，我們對2026年的展望反映出公司費用將小幅增加，以在未來幾個季度支援這些成長計畫。本季資本支出總額約為4,600萬美元，重點投入於WHS事業部的成長，包括資料中心社區（Data Center Community）擴建。

Target's strong business fundamentals and durable operating model are reflected in the strength of our balance sheet and our ability to maintain significant financial flexibility through prudent capital management. We ended the quarter with approximately $150 million in total available liquidity and a net leverage ratio of 0.6 times.

Target強勁的業務基本面與具韌性的營運模式，體現在我們資產負債表的穩健，以及透過審慎資本管理維持顯著財務彈性的能力。本季末，我們的可用流動性總額約為1.5億美元，淨槓桿比率為0.6倍。

Over the past year, we executed the largest commercial pivot in our history while maintaining a strong balance sheet and significant financial flexibility. Our disciplined capital allocation approach has been central to this progress. As we execute on recently announced WHS contract awards, we believe this foundation positions Target to appropriately scale its capital structure while maintaining a strong financial profile and the flexibility to advance our strategic growth initiatives with a scalable and sustainable operating model, robust financial profile and strong momentum, we are well positioned to continue executing.

過去一年，我們在維持穩健資產負債表與顯著財務彈性的同時，完成了公司史上最大幅度的商業轉型。我們嚴謹的資本配置方法一直是推動此進展的核心。隨著我們執行近期宣布的WHS合約獎項，我們相信這一基礎使Target得以在維持強健財務體質的同時，適度擴大資本結構，並保有推進策略性成長計畫所需的彈性；憑藉可擴展且可持續的營運模式、穩健的財務概況與強勁動能，我們已具備持續落實執行的良好條件。

This foundation supports our increased 2026 outlook which includes total revenue of $370 million to $380 million and adjusted EBITDA of $75 million to $85 million, with capital spending, excluding acquisitions between $460 million and $480 million. As recent contract awards and community expansions come online and scale through 2026, we expect revenue and adjusted EBITDA to build steadily throughout the year.

此一基礎支撐我們上調的2026年展望：總營收3.7億至3.8億美元、調整後EBITDA 7,500萬至8,500萬美元；資本支出（不含併購）為4.6億至4.8億美元。隨著近期合約獎項與社區擴建陸續上線並在2026年擴張，我們預期營收與調整後EBITDA將在全年穩步成長。

The additional operating scale and improved unit economics should support continued margin expansion through 2026 and into 2027. Together, these factors have positioned us to exit 2027 with annualized revenue of more than $680 million and adjusted EBITDA exceeding $240 million. This strong momentum is driven by significant growth in our WHS segment, which is projected to become our largest operating segment by the end of 2026, contributing more than 45% of consolidated revenue based on the current contract portfolio.

額外的營運規模與改善的單位經濟效益，應可支撐利潤率在2026年並延續至2027年持續擴張。綜合上述因素，我們預期在2027年退出時，年化營收將超過6.8億美元，調整後EBITDA將超過2.4億美元。此一強勁動能主要由WHS事業部的顯著成長所驅動；依據目前合約組合，WHS預計在2026年底前成為我們最大的營運事業部，並貢獻合併營收超過45%。

Target is well positioned with a flexible operating model and strong financial profile as we continue to evaluate a robust growth pipeline focused on continued expansion of our WHS segment, which we believe offers the greatest opportunity to accelerate value creation for our shareholders. As we pursue these opportunities, we will remain focused on maintaining the strong financial profile we've built while maximizing margin contribution through our efficient operating structure.

Target具備彈性的營運模式與強健的財務概況，並將持續評估強勁的成長管線，重點聚焦於WHS事業部的持續擴張；我們相信這提供了為股東加速創造價值的最大機會。在追求這些機會的同時，我們將持續專注於維持已建立的強健財務體質，並透過高效率的營運架構最大化利潤貢獻。

With that, I will hand it back to Brad for closing remarks.

那麼，我把時間交還給 Brad 作結語。

Thanks, Jason. We have continued to advance our strategic transformation aligning our vertically integrated operating model with long duration demand across AI-driven data center, power generation and other critical infrastructure development.

謝謝你，Jason。我們持續推進策略轉型，使我們的垂直整合營運模式與 AI 驅動資料中心、發電以及其他關鍵基礎建設開發等長期需求相一致。

Since February 2025, we've secured more than $2 billion of multiyear contracts, including approximately $1.8 million in our WHS segment. Our focus now is on executing these awards sustaining momentum and accelerating our growth initiatives. With an active growth pipeline exceeding 20,000 beds, our continued pivot toward durable, high-value end markets supported by strong secular tailwinds positions us to sustain momentum and drive meaningful growth.

自 2025 年 2 月以來，我們已取得超過 20 億美元的多年期合約，其中約 180 萬美元來自我們的 WHS 事業部門。我們目前的重點是落實執行這些得標案、維持動能並加速我們的成長計畫。在一條超過 20,000 床位的活躍成長管線支持下，我們持續轉向具耐久性、高價值的終端市場，並受強勁的長期結構性趨勢支撐，使我們得以維持動能並推動具意義的成長。

Our customer-centric model and Target Hyper/Scale platform continue to resonate with customers and serve as a clear point of differentiation reinforcing our competitive advantage. Supported by a scalable operating platform and a robust, well-capitalized financial profile, we are well positioned to pursue an expanding addressable end market opportunity, deploy capital with discipline and execute at scale to deliver durable long-term value creation.

我們以客戶為中心的模式與 Target Hyper/Scale 平台持續獲得客戶共鳴，並成為明確的差異化要素，強化我們的競爭優勢。在可擴展的營運平台以及穩健、資本充足的財務狀況支持下，我們已具備良好條件把握不斷擴大的可服務終端市場機會、以紀律部署資本，並以規模化執行，創造可持續的長期價值。

Thank you for joining us on the call today. And once again, we appreciate your interest in Target Hospitality. We will now open the call for questions.

感謝各位今天參與電話會議。再次感謝各位對 Target Hospitality 的關注。我們現在開放提問。

(Operator Instructions)

(接線員指示)

Scott Schneeberger, Oppenheimer.

Scott Schneeberger，Oppenheimer。

Thanks very much. Good morning and congratulations on your new win. You guys have been certainly quite busy. I'm going to ask a few questions on -- I guess, on that one, and then I'll turn it over, probably 3 or 4 specific to it. Could you speak to what type of customer the AI Infrastructure contract is and where it's located, just kind of the nature of who that is, where that is? And then I'll ask a second one here while we're at it.

非常感謝。早安，並恭喜你們拿下新的案子。你們確實一直非常忙。我會先就——我想是就這個案子——問幾個問題，然後我會把時間交出去，可能有 3 到 4 個問題會特別針對它。你們能談談 AI 基礎建設合約的客戶類型以及所在地嗎？也就是大概是什麼樣的客戶、在哪裡？另外我也順便再問第二個問題。

How much is committed revenue? What's variable? And what is the CapEx structure of the revenue, the CapEx consideration component?

有多少是承諾收入？哪些是可變動的？以及這筆收入的資本支出（CapEx）結構、CapEx 對價/考量的組成是什麼？

Yeah, I would say we're not going to disclose the customer or the location. What we've disclosed is what's out there, what we're allowed to disclose at this point. In terms of the contract structure, I think you asked about what is the committed revenue minimum. Assuming the term of 48 months, the committed revenue minimum is just above $750 million.

是的，我想我們不會揭露客戶或地點。我們已揭露的內容就是目前對外、以及在此階段我們被允許揭露的資訊。就合約結構而言，我想你問的是承諾收入的最低額度是多少。以 48 個月的合約期間來看，承諾收入最低額度略高於 7.5 億美元。

None of that includes variable revenue. So we anticipate variable revenue above and beyond that. It could range from $20 million to $40 million per year once it's fully ramped up in mid-2027 or thereabouts. So I would say kind of the contract minimums range right around that, the over $750 million minimum obviously doesn't include any variable. So there's incremental variable revenue upside above and beyond that, not inconsistent with the last Data Center Hub contract that we announced in April.

上述數字都不包含可變動收入。因此我們預期在此之上還會有額外的可變動收入。一旦在 2027 年年中或前後完全爬坡完成，每年的可變動收入可能介於 2,000 萬至 4,000 萬美元。所以我會說合約最低額度大致就在那個區間；而略高於 7.5 億美元的最低額度顯然不包含任何可變動部分。因此在此之上還有額外的可變動收入上行空間，這與我們在 4 月宣布的上一份 Data Center Hub 合約並不矛盾。

Understood. A couple more on this one. Any consideration for the margin profile, how we would think about this contract maybe versus the last one or however you can give a little more insight if you're able. And then also, it looks like -- just -- yes, we'll do that and I'll just one more. Go ahead, Jason.

了解。再就這個案子多問幾個。關於毛利率/利潤率結構，有沒有什麼看法？我們應該如何思考這份合約相較於上一份合約，或你們能提供的任何額外洞見。另外，看起來——就——好，我們先談這個，然後我再問最後一個。請說，Jason。

Yeah. So the margin profile, very similar to the last contract we announced between 40% and 50% roughly on that. High ADR, you can obviously calculate that from the beds that are being deployed associated with this in the contracted minimum. So that's essentially the structure on that.

好的。就利潤率結構而言，與我們上一份宣布的合約非常相近，大約在 40% 到 50% 之間。ADR 很高，你其實可以從本次部署的床位數以及合約最低額度去推算。基本上結構就是如此。

Great. And then just lastly for me, and I'll turn it over. Kind of the cadence on over the coming year of revenue of initial revenue. And then also the discussion of using predominantly new assets is -- I guess, just an open question on that. I infer that not near anything else, but you guys on the last contract use a lot of what was excess.

很好。最後一個問題，然後我就把時間交出去。關於未來一年初期收入的認列節奏。另外，你們提到主要使用新資產——我想這是一個開放式問題。我的理解是這案子可能不靠近其他據點，但你們在上一份合約中使用了不少閒置/多餘資產。

So just some discussion of, are you in a good situation with your current supplier to get that up and ramped rapidly and anything else you can share? Thanks.

所以想請你們談談：就目前供應商而言，你們是否處於有利位置，能快速把供應拉起來並完成爬坡？以及還有沒有其他可以分享的？謝謝。

Yeah, I would say in terms of the cadence of revenue, very minimal revenue is anticipated for this year. That will start to ramp up pretty heavily as we move through 2027. And we think by the back half of 2027, all 3,370 beds are fully ramped up. That's what supports the annualized adjusted EBITDA number that we spoke of on the call of over $240 million.

好的，我會說就收入節奏而言，今年預期的收入非常少。隨著我們進入 2027 年，收入將開始大幅爬升。我們認為到 2027 年下半年，全部 3,370 床位都會完成爬坡、全面到位。這也支撐了我們在電話會議中提到的、年化調整後 EBITDA 超過 2.4 億美元的數字。

That's all contributing to that. And what was the other part of the question?

這些都會對那個數字有所貢獻。你問題的另一部分是什麼？

It was supply. I'll jump on that one. Scott, this is Brad. Yes, on the supplier network, for us, we've been buying these buildings for many, many years. We have a very well-established, diversified North American supplier network, creates a lot of flexibility for us, right?

是供應。我來回答那一題。Scott，我是 Brad。是的，關於供應商網絡，我們多年來一直在採購這些建築模組。我們在北美有一個非常成熟且多元化的供應商網絡，這為我們帶來很大的彈性，對吧？

Let's us expand the inventory as these customers ramp up. And if you look at the contract that we just announced today and the prior one, both of these build out about over 12-plus months, right? So it really gives us a lot of time to kind of get the product ready, get it built and delivered to site. And that goes along with hiring our own staff and everything. So it works really well for us staffing up, us building, us financing it as well.

讓我們能在客戶爬坡時擴充庫存。如果你看我們今天剛宣布的合約以及前一份合約，兩者的建置期都在 12 個月以上，對吧？因此這確實給了我們充足時間去準備產品、完成製造並運送到現場。同時也包含我們自聘人員等各項工作。所以這對我們很有利：人力擴編、建置、以及融資安排都能配合得很好。

So it works well when you could build these out over kind of a year.

當你能在大約一年的時間內完成這些建置時，整體運作就很順。

Sounds good. Thanks, Shay. You all have always done a nice job with that. Congratulations again on this. I'll turn it over.

聽起來不錯。謝謝，Shay。你們一直在這方面做得很好。再次恭喜你們。我把時間交出去。

Jawad Bhuiyan, Stifel.

Jawad Bhuiyan，Stifel。

Good morning. Thanks for the question. I'm on Stephen Gengaro. Could you talk a little bit about the supply chain for these new rooms and maybe what the timing would be to add incremental rooms going forward? And I just have another follow-up.

早安。謝謝你的提問。我是代表 Stephen Gengaro 提問。你能否談談這些新房間的供應鏈情況，以及未來新增增量房間的時程大概會是如何？我還有一個追問。

Yeah, just in general and just kind of what I touched on, we have a supplier network kind of spread out across the U.S., right, North American based. We have a lot of history with the folks that we build from. I don't see any issue in ramping up. And the contract, again, at a high level, builds out over 12 months, right?

是的，整體而言，正如我剛才提到的，我們有一個供應商網絡，分布在美國各地，對，主要是北美在地的。我們與為我們建造的夥伴有很長的合作歷史。我不認為在加速擴產方面會有任何問題。而且合約方面，再次以高層次來說，是在 12 個月內完成建置，對吧？

There will be some delivered in quarter-over-quarter going out for 12 months until the project is finished.

在專案完成之前，接下來 12 個月會按季度逐季交付一部分。

Got it. And maybe, I guess, in terms of the bidding landscape, what does that look like just because we're kind of seeing the -- it seems like the new award, it seems to be at a much higher average daily rate. Is this because you're building new rooms? Or is it related to the types of rooms and services?

了解。另外我想問，從投標環境來看，目前大概是什麼情況？因為我們看到——看起來新得標案的平均每日房價似乎高出很多。這是因為你們在建新房間嗎？還是與房型與服務類型有關？

Yeah, all the above, right? When you're building new product, the basis is higher, but our return model stays the same, right? Whether we're using a used product or when we're buying brand new, we're not giving in on the return model.

是的，以上皆是，對吧？當你在建造新產品時，成本基礎會更高，但我們的報酬模型保持不變，對吧？不論我們使用二手產品，或是購買全新產品，我們都不會在報酬模型上讓步。

Yeah, we're definitely pretty disciplined about maintaining our minimum payback period. So obviously, new units are going to drive up rates.

是的，我們在維持最低回收期方面確實相當自律。所以很明顯，全新單位會推升價格。

Got it. And just one last one. Within the oilfield, I guess any signs of pricing activity that you guys are seeing or any sort of color on that would just be really appreciated. Thank you.

了解。最後一個問題。在油田領域，你們是否看到任何價格活動的跡象？或是能否提供一些相關觀察？將非常感謝。謝謝。

So HFS South, I would say, we anticipate that segment to maintain an operating performance pretty consistent with Q1 for the rest of the year, slightly up margin-wise from Q4, driven by some operational efficiencies, but we view that segment as relatively stable as we pace through 2026, and that's what's baked into our outlook as well.

就 HFS South 而言，我會說，我們預期該分部在今年剩餘時間的營運表現將與第一季大致一致；相較第四季，毛利率略有提升，主要由一些營運效率帶動。不過我們認為，隨著我們邁向 2026 年，該分部相對穩定，這也已反映在我們的展望之中。

Awesome. Thank you. I'll pass it on.

太好了。謝謝。我把時間交給下一位。

Raj Sharma, Texas Capital.

Raj Sharma，Texas Capital。

Hi. Thank you for taking my questions again congratulations on the new win and the continued solid execution. Some of my questions have been answered. I wanted to understand the need for the capital expenditures and how you intend to sort of allocate in terms of the funds raised? And how much of this new build is -- is it all new? Or is it some from existing inventory? Thank you.

嗨。謝謝再次回答我的問題，也恭喜拿下新案並持續穩健執行。我有些問題已經被回答了。我想了解資本支出的需求，以及你們打算如何分配所募集的資金？另外，這次新建的部分——是全部都是新的嗎？還是有一部分來自既有庫存？謝謝。

Yeah, I'll take that one. So this is Jason. Thanks for the question. All of it is new. So they're all new units.

好的，這題我來回答。我是 Jason。謝謝你的提問。全部都是新的。所以都是全新單位。

This is going to phase over time. So we've outlined this at the top of the call, this 3,370 bed community will phase over the next the 12 to 14 months, essentially. We anticipate by mid-2027, it will be fully ramped up and our capital deployment is going to pace on that schedule as well.

這會隨時間分階段導入。我們在電話會議一開始已說明，這個 3,370 床位的社區將在接下來約 12 到 14 個月內分期完成。我們預期到 2027 年年中將全面爬坡到位，而我們的資本投入也會依照該時程推進。

I would say in terms of funding capacity for us, I would say, between the capital-efficient contract structure, our growing operating cash flows, which are going to continue to grow as we phase these beds and existing liquidity and our balance sheet capacity, we're pretty well positioned to fund our capital expenditure program.

就我們的資金籌措能力而言，我會說，憑藉資本效率高的合約結構、持續成長的營運現金流（隨著我們分期導入這些床位將繼續成長）、既有流動性以及資產負債表的承載能力，我們具備相當良好的條件來支應資本支出計畫。

The other thing is that this capital spend is aligned with fully executed contracts, right, and the related ramp-up schedule. So we're ensuring that the capital deployment is directly tied to long duration projects that meet our minimum payback requirements. So the economics and the support for the spend is already embedded in our contract structures that are fully executed. We're not speculatively spending.

另外一點是，這些資本支出是與已完全簽署的合約相匹配的，對吧？也與相關的爬坡時程一致。因此我們確保資本投放是直接連結到符合我們最低回收期要求的長期專案。所以支出的經濟性與支撐，已經內嵌在我們已完全簽署的合約結構中。我們不是在投機性支出。

Yeah, and I think the down payments help a lot as well, right, that we're able to get from the customer.

是的，而且我認為預付款也幫助很大，對吧？我們能從客戶那邊取得。

Yeah, absolutely. Certainly, there's customer funding mechanisms at the early phases of deployment, which reduce funding requirements.

是的，完全同意。確實，在部署的早期階段有客戶出資的機制，可降低我們的資金需求。

Got it. Thank you. Very helpful. That's all for me, and I'll take it offline.

了解。謝謝。非常有幫助。我這邊就到這裡，之後再私下跟進。

Thank you.

謝謝。

Greg Gibas, Northland Securities.

Greg Gibas，Northland Securities。

Great. Good morning, Brad. JJason, congrats on the new win. I wanted to follow up on that structure to the degree that you can share. How -- I mean, nice to hear that what you've kind of the $750 million is all committed, no variable. Could you maybe provide a breakout of service versus any type of CapEx reimbursement?

很好。早安，Brad。Jason，恭喜拿下新案。我想在你可分享的範圍內，追問一下那個結構。我的意思是，很高興聽到你提到那 7.5 億美元是全額承諾、沒有浮動部分。你能否提供一下服務費與任何形式的資本支出補償之間的拆分？

Well, we don't disclose those contract-specific funding terms. What I would say is that contracts are designed to be capital efficient and aligned with long-duration cash flows.

嗯，我們不會揭露那些特定合約的資金條款。我能說的是，合約的設計是為了提高資本效率，並與長期現金流相匹配。

Okay. Fair enough. And I wanted to follow up too on the government side of the business. I think you mentioned $5 million to $7 million in transition initiative costs over the next couple of quarters. I think you said related to the network optimization.

好的。可以理解。我也想追問政府業務那邊。我記得你提到未來幾季會有 500 萬到 700 萬美元的轉型倡議成本。我想你說是與網絡優化相關。

Could you maybe elaborate on that? And then maybe what's kind of causing that?

你能否再多說明一下？另外，這主要是什麼原因造成的？

Yeah, essentially, there's basically legacy assets that were associated with the PCC contracts, and there's transitional costs associated with that, that we don't expect to recur, but we anticipate that they'll be incurred over the next couple of quarters and then fall off from there.

是的，基本上，這主要是一些與 PCC 合約相關的既有資產，並且有與之相關的過渡成本；我們不預期會重複發生，但我們預期會在接下來幾季內發生，之後就會消退。

Okay. Makes sense. And then lastly, I just wanted to maybe get a better sense of the guidance raise. Is that a direct function of the new contract? Or are there any other moving parts there?

好的。有道理。最後，我想更清楚了解一下上調指引的原因。這是否直接源自於新合約？還是還有其他變動因素？

That is a direct function of the new contract.

這是新合約直接帶來的結果。

Sounds good. Thanks, guys.

了解。謝謝各位。

Thanks.

謝謝。

(Operator Instructions)

(接線員指示)

Scott Schneeberger, Oppenheimer.

Scott Schneeberger，Oppenheimer。

Thanks very much for taking the follow-up. Just one more for me. The pipeline remains at 20,000 beds even though you just announced this large win, and this is the second time it happened, last large win, you announced maintaining this 20,000 bed pipeline. So could you just elaborate a little bit on the demand environment, what you're seeing and what's keeping it so strong? Thank you.

非常感謝讓我追問。我再問最後一題。即使你們剛宣布這筆大型得標，管線仍維持在20,000張床位；而這已是第二次發生，上一次大型得標時你們也宣布管線維持在20,000張床位。能否請你們多談一點需求環境、你們看到的情況，以及是什麼讓需求維持得如此強勁？謝謝。

Well, first, I promise you we can do math. So that wasn't a mistake on our part. Look, it's just a continual backfilling of this, right? When we say 20,000-plus beds, so there really is more than that. What we kind of put in the funnel and it comes out the bottom is what we believe, what we know is we're in discussions with these customers that make up this 20,000-plus bed in some form, right?

嗯，首先，我向你保證我們會算數。所以那不是我們的失誤。你看，這就是持續回補的過程，對吧？當我們說20,000張以上床位時，實際上確實多於這個數字。我們放進漏斗、最後從底部流出的，是我們相信、也知道我們正與這些客戶進行討論；這些客戶以某種形式構成了這個20,000張以上床位的管線，對吧？

We're in designs, we're in bid negotiations with them. We're in some advanced discussions with them. They've moved through a lot of different cycles and it's getting close to a decision point on some of them, right?

我們正在做設計、正在與他們進行投標談判。我們也在與他們進行一些更深入的討論。他們已經走過許多不同的流程週期，其中一些正接近決策點，對吧？

So we announced one in our -- in between now and our last call, then we announced this one, right, for another 3,300, and it's still over 20,000 beds. It continues to backfill. Over two-third of the data center developments are in rural areas, right, continues to support a backfilling of just growth opportunities for us. And we're seeing new deals every week that come in.

所以在我們上次電話會議到現在之間，我們宣布了一筆，接著又宣布了這一筆，對吧？又多了3,300張，但仍然超過20,000張床位。它會持續回補。超過三分之二的資料中心開發案位於鄉村地區，對吧？這也持續支持我們成長機會的回補。而且我們每週都看到有新案子進來。

That's excellent. And just a quick follow-up on that. Of this 20,000 beds, you said it's in all various time stages. The least ripe, how far out there are they, are they -- before they may determine when to make an award? Is it a year?

太好了。我再快速追問一下。這20,000張床位中，你說分布在各種不同的時間階段。最不成熟的那些，距離他們可能決定何時授標有多遠？是一年嗎？

Or is it two years? Or is it longer than that? Just a sense of how the time frame of this pipeline is of its activity. Thanks.

還是兩年？或是更久？想請你們大概說一下這個管線的活動時間範圍。謝謝。

Yeah, Scott, we haven't really put a time frame on it, but I'll give you one. I would say it's in that longest out there is probably two years, right? But most of that is, I would say, weighted towards much less time than that. I would say, in the next 12 months that some decisions could be made.

是的，Scott，我們其實沒有特別給出時間框架，但我可以給你一個。我會說最久的可能大概是兩年，對吧？但其中大多數，我會說權重更偏向於比這短得多的時間。我會說在接下來12個月內，可能會做出一些決定。

Do they shut, do they go back, do they move to the right or to the left, we're not sure, but that's kind of where they sit today. But if you look at, again, overall over a 24-month period, some of these will drop off, some new ones will come on, right? There's going to be some winners and losers in these. Maybe just one general comment, too, for everybody, Mark. Just when you look at the contracts we have recently signed, including the AI Infrastructure Community we announced today, we believe they have the ability to produce more wins for us in the future.

它們會不會成交、會不會回頭、會往右移或往左移，我們不確定，但這就是它們目前的位置。但如果你再看一次，整體在24個月期間，有些會掉出、有些新的會加入，對吧？這裡面會有贏家也會有輸家。另外也給大家一個概括性的評論，Mark。當你看我們最近簽下的合約，包括我們今天宣布的AI基礎設施社群（AI Infrastructure Community），我們相信它們有能力在未來為我們帶來更多得標。

All of these counterparties are expanding and spending capital across the US. And as we execute on these existing contracts, we're confident in becoming a preferred supplier on new sites.

所有這些交易對手方都在全美擴張並投入資本支出。而隨著我們執行這些既有合約，我們有信心在新據點成為優先供應商。

And look, I say all of this to say there is a lot of thought on who we contract with and how that relationship can look into the future. We're not just -- we have the ability here. I wouldn't say solely to pick and choose who we do business with. But in some cases, the supply and demand are definitely in our favor, right? So when we're looking at these bids, we are saying what can -- how can this look in the future for us?

你看，我說這些是想表達：我們在選擇與誰簽約，以及這段關係未來可能如何發展上，投入了很多思考。我們並不是——我們確實有能力在這裡。我不會說我們完全可以任意挑選合作對象。但在某些情況下，供需確實明顯對我們有利，對吧？所以當我們在看這些投標時，我們會問：這對我們未來會是什麼樣子？

Is this a customer we want to really do business with now and can it lead to more business in the future.

這是不是我們現在就想合作的客戶，並且能否在未來帶來更多業務。

And we think the contracts we've signed here recently, including the power contracts have the ability to produce more wins for us long term. Thank you.

我們認為我們最近簽下的合約，包括電力合約，長期來看都有能力為我們帶來更多得標。謝謝。

There are no further questions at this time. I will now hand the call back to Brad Archer for the closing remarks.

目前沒有其他問題。我現在把電話交回給Brad Archer做結語。

Yes. Thank you all for joining us today, and we look forward to talk to you again on our second quarter call. Operator, that will conclude the call for today.

好的。感謝各位今天參與，我們期待在第二季電話會議再與各位交流。接線員，今天的電話會議到此結束。

Thank you. Ladies and gentlemen, the conference has now ended. Thank you all for joining. You may now disconnect your lines.

謝謝。各位女士、先生，本次電話會議已結束。感謝各位參與。您現在可以掛斷電話。