Geo Group Inc Stock Price, News & Analysis

The GEO Group (NYSE:GEO) reported strong Q2 2025 financial results and announced a significant $300 million share repurchase program through June 2028. The company achieved total revenues of $636.2 million and net income of $29.1 million ($0.21 per diluted share), compared to a net loss in Q2 2024.

Key developments include the $312 million sale of the Lawton Facility to Oklahoma State, the $60 million acquisition of the San Diego Facility, and several new ICE contracts expected to generate substantial annual revenues: Delaney Hall ($60M+), North Lake Facility ($85M+), and D. Ray James Facility ($66M). The company's net debt decreased to $1.47 billion with net leverage at 3.3x Adjusted EBITDA.

GEO updated its FY2025 guidance, projecting revenues of $2.56 billion and Adjusted EBITDA between $465-490 million.

The GEO Group (NYSE:GEO) has completed the sale of its Lawton Correctional Facility in Oklahoma to the State of Oklahoma for $312 million. The company plans to use the proceeds for a strategic property exchange, acquiring the 770-bed Western Region Detention Facility in San Diego, California, and paying off senior secured debt.

The transaction will reduce GEO's total net debt to $1.47 billion. The company maintains ownership of approximately 50,000 beds across its facilities. Management views this sale as a significant deleveraging event that strengthens the balance sheet and positions the company for potential future capital returns to shareholders.

The GEO Group (NYSE:GEO) has scheduled its second quarter 2025 financial results release for Wednesday, August 6, 2025, before market opening. The company will host a conference call and simultaneous webcast at 11:00 AM Eastern Time on the same day.

The earnings call will feature key executives including George Zoley (Executive Chairman), J. David Donahue (CEO), and Mark Suchinski (CFO). Participants can join via phone using U.S. number 1-877-250-1553 or International number 1-412-542-4145. A webcast replay will be available for one year, and a telephonic replay through August 13, 2025, using passcode 2104307.

The GEO Group (NYSE: GEO) has announced significant amendments to its Credit Agreement, including an increase in its Revolving Credit Facility from $310 million to $450 million and an extension of the facility's maturity to July 14, 2030.

The amendment reduces the interest rate on SOFR-based revolving credit loans by 0.50% and increases GEO's capacity for restricted payments. The company has already repaid $132 million of Term Loan B and plans to use proceeds from the upcoming sale of the Lawton Correctional Facility to further reduce debt, expecting to lower total net debt to $1.47 billion.

GEO Group (NYSE: GEO) has announced a strategic acquisition agreement to purchase the 770-bed Western Region Detention Facility in San Diego, California for $60 million. The facility, which GEO currently leases for $5.1 million annually until March 2029, generates approximately $57 million in annualized revenues through a contract with the U.S. Marshals Service.

The transaction is structured as a like-kind real estate property exchange with proceeds from the previously announced sale of the GEO-owned Lawton Correctional Facility in Oklahoma. This structure is expected to result in capital gains cash tax savings of approximately $9.5 million. The acquisition is scheduled to close on July 31, 2025, following the Lawton Facility sale closure on July 25, 2025.

Following both transactions, GEO expects to have $222 million in net proceeds, which it plans to use, along with cash on hand and available liquidity, to pay off senior secured debt, including approximately $300 million in floating rate debt. This debt reduction is expected to position the company to consider potential future capital returns to shareholders.

The GEO Group's subsidiary, GEO Transport, has secured a new five-year contract with the U.S. Marshals Service for secure transportation and contract detention officer services. The contract covers 26 federal judicial districts across 14 states and is expected to generate up to $147 million over five years, or approximately $29 million in annual revenue. The contract margins are projected to align with GEO's Managed-Only services contracts at around 15%. This agreement reinforces GEO's established partnership with the U.S. Marshals Service and demonstrates the company's capability to deliver high-quality services while pursuing growth opportunities through its diversified services platform.

The GEO Group announced a significant legal development as the U.S. District Court approved a settlement in the Roman v. Wolf case, allowing full intake operations to resume at their 1,940-bed Adelanto ICE Processing Center in California. This settlement lifts a COVID-19-related intake prohibition order that had been in place for over four years. At full capacity, the Adelanto Center is expected to generate up to $31 million in additional annual revenue for GEO, with margins aligned with their other company-owned Secure Services facilities. The facility operates under a 15-year contract with ICE, initiated in December 2019, which includes a five-year base period and two five-year options, with the current term extending through December 2029.

The GEO Group has secured a contract modification with U.S. Immigration and Customs Enforcement (ICE) to activate the 1,868-bed D. Ray James Facility in Folkston, Georgia as a federal immigration processing center. The modification, effective June 6, 2025, falls under the existing intergovernmental service agreement involving the 1,118-bed Folkston ICE Processing Center. GEO expects to generate approximately $66 million in incremental annualized revenues in the first year of operations. The company will provide comprehensive services including security, maintenance, food services, and access to recreational amenities, medical care, and legal counsel. This expansion reinforces GEO's 40-year partnership with ICE and positions the facility to support increased federal immigration enforcement priorities.

The GEO Group (NYSE: GEO) has announced the sale of its Lawton Correctional Facility in Oklahoma to the Oklahoma Department of Corrections for $312 million. The transaction is expected to close on July 25, 2025, with facility operations transitioning to the state department on the same date. GEO plans to use the proceeds for debt reduction and general corporate purposes. Executive Chairman George C. Zoley emphasized that this sale represents a significant deleveraging event and reflects the intrinsic value of GEO's company-owned facilities, which comprise over 52,000 beds. The management team remains committed to disciplined capital allocation to enhance shareholder value.