Geo Group Inc Stock Price, News & Analysis

The GEO Group (NYSE: GEO) has secured a contract with U.S. Immigration and Customs Enforcement (ICE) for the immediate activation of its company-owned 1,800-bed North Lake Facility in Baldwin, Michigan. The facility will serve as a federal immigration processing center.

The initial agreement is expected to transition into a long-term contract within months. The multi-year contract is projected to generate over $70 million in annualized revenues in the first full year of operations, with margins aligned with GEO's company-owned Secure Services facilities.

Services provided will include exclusive facility use, security, maintenance, food services, and access to recreational amenities, medical care, and legal counsel.

The GEO Group (NYSE: GEO) has announced a significant contract modification with U.S. Immigration and Customs Enforcement (ICE) for its Karnes ICE Processing Center in Karnes City, Texas. The facility will transition from housing only adult males to accommodating mixed populations.

The 1,328-bed company-owned facility operates under an intergovernmental service agreement (IGSA) between Karnes County and ICE, effective through August 2029. GEO provides comprehensive support services including facility usage, security, maintenance, food services, and access to recreational amenities, medical care, and legal counsel.

The revised agreement is expected to generate $79 million in annualized revenues in the first full year, representing an incremental increase of $23 million. The margins will align with GEO's company-owned Secure Services facilities standards.

The GEO Group (NYSE: GEO) has secured a 15-year fixed-price contract with U.S. Immigration and Customs Enforcement (ICE) for its company-owned Delaney Hall Facility in Newark, New Jersey. The 1,000-bed facility will serve as a federal immigration processing center, providing security, maintenance, food services, and access to recreational amenities, medical care, and legal counsel.

Key financial highlights:

• Expected to generate over $60 million in annualized revenues in the first full year
• Estimated 15-year contract value of approximately $1 billion with cost of living adjustments
• Facility reactivation planned for Q2 2025
• Revenue and earnings expected to normalize in H2 2025

GEO is investing $70 million in capital expenditures to enhance capabilities for expanded detention capacity, secure transportation, and electronic monitoring services for ICE.

The GEO Group (NYSE: GEO) reported its Q4 and full-year 2024 financial results. Q4 2024 showed total revenues of $607.7 million, with net income of $15.5 million ($0.11 per diluted share), and Adjusted EBITDA of $108.0 million, compared to $129.0 million in Q4 2023.

Full-year 2024 delivered total revenues of $2.42 billion, net income of $31.9 million ($0.22 per diluted share), and Adjusted EBITDA of $463.5 million. The company announced a new 15-year contract with ICE for the Delaney Hall Facility in Newark, expected to generate over $60 million in annual revenues.

For 2025 guidance, GEO expects revenues of approximately $2.5 billion, with net income per share ranging from $0.74 to $0.88, and Adjusted EBITDA between $460-485 million. The company plans to reduce total net debt by $150-175 million to approximately $1.55 billion.

The GEO Group (NYSE:GEO) has announced its upcoming fourth quarter 2024 financial results release, scheduled for Thursday, February 27, 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 conference call will feature key executives including George Zoley (Executive Chairman), J. David Donahue (CEO), Wayne Calabrese (President and COO), and Mark Suchinski (CFO). Participants can join via telephone using U.S. (1-877-250-1553) or International (1-412-542-4145) numbers.

A live audio webcast will be available on GEO's investor relations website, with replay access until March 6, 2025. The telephonic replay numbers are 1-877-344-7529 (U.S.) and 1-412-317-0088 (International), with passcode 3882673.

The GEO Group (NYSE: GEO) has responded to a ruling by the U.S. Court of Appeals for the Ninth Circuit regarding the Nwauzor case. The company maintains that participants in the federally mandated Voluntary Work Program (VWP) at the Tacoma ICE Facility are not GEO employees. The United States Department of Justice supported GEO's position, arguing that applying state minimum wage laws is precluded by federal preemption and violates intergovernmental immunity principles.

GEO contends that the State of Washington has unconstitutionally violated the Supremacy Clause of the United States Constitution. The company has expressed strong disagreement with the court's decision and plans to pursue all available appeals.

The GEO Group (NYSE: GEO) announced a $70 million investment to enhance its capabilities in providing expanded detention capacity, secure transportation, and electronic monitoring services to U.S. Immigration and Customs Enforcement (ICE). GEO, currently ICE's largest service provider with 21,000 detention beds across 16 centers, plans to expand to 32,000 beds at 23 facilities.

The company plans to offset this investment by selling several underperforming state correctional facilities. Additionally, GEO announced leadership changes: CEO Brian Evans will retire on December 31, 2024, with J. David Donahue taking over as CEO on January 1, 2025. Paul Laird will become Senior VP of Secure Services, and Daniel Ragsdale will serve as Senior VP of Contract Administration and Compliance.

The GEO Group reported its Q3 2024 financial results with total revenues of $603.1 million and net income of $26.3 million ($0.19 per diluted share). Adjusted net income reached $29.1 million ($0.21 per diluted share). The company's Adjusted EBITDA was $118.6 million. Results were impacted by lower revenues in Electronic Monitoring Services due to declining ISAP participant counts, averaging 177,000 individuals. For full-year 2024, GEO expects revenues of $2.42 billion and Adjusted EBITDA between $470-480 million. The company maintains a net debt of $1.69 billion with approximately $280 million in total available liquidity.

The GEO Group (NYSE: GEO) has announced that U.S. Immigration and Customs Enforcement (ICE) has exercised a five-year option period for the contract of the Adelanto ICE Processing Center in California. This extension will prolong the contract through December 19, 2029. The original 15-year contract, initiated on December 19, 2019, includes a five-year base period and two five-year option periods.

The Adelanto Center, owned by GEO, has a capacity of 1,940 beds and employs approximately 350 people. George C. Zoley, Executive Chairman of GEO, emphasized the center's important role in supporting ICE and the U.S. Department of Homeland Security's mission and operational priorities. He also praised the dedication and professionalism of the center's employees in providing high-quality support services for ICE in California.