Shares of Target Hospitality Corp. (TH) surged 5.21% in pre-market trading on Wednesday following the company's release of strong fourth-quarter results and a positive outlook for 2025. The hospitality services provider reported better-than-expected Q4 revenue and earnings, demonstrating its continued focus on strategic growth initiatives.

For the fourth quarter of 2024, Target Hospitality posted revenue of $83.7 million, surpassing analysts' expectations of $80.1 million. The company's net income for the quarter stood at $12.5 million, or $0.12 per diluted share. Adjusted EBITDA for Q4 reached $41.1 million. For the full year 2024, Target Hospitality reported a total revenue of $386.3 million and a net income of $71.3 million, or $0.70 per diluted share.

Looking ahead, Target Hospitality provided an encouraging outlook for 2025, projecting total revenue between $265 million and $285 million. The company highlighted its focus on advancing strategic diversification and growth opportunities, including a multi-year workforce hub contract expected to generate approximately $140 million in revenue through 2027. Additionally, Target Hospitality announced a 5-year $246 million contract award for reactivating its South Texas assets, further supporting its growth initiatives and diversification efforts.