Geo Group Inc Stock Price, News & Analysis

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.

GEO Group reported its Q1 2025 financial results with total revenues of $604.6 million and net income of $19.6 million ($0.14 per diluted share), compared to $605.7 million revenue and $22.7 million net income in Q1 2024. Adjusted EBITDA decreased to $99.8 million from $117.6 million year-over-year. The company announced two significant contract awards for facility reactivation, totaling 2,800 beds and over $130 million in annualized revenues. GEO committed $70 million to enhance capabilities for ICE services. For full-year 2025, GEO expects revenues of $2.53 billion, with net income guidance of $0.77-$0.89 per share. The company aims to reduce total net debt by $150-175 million to approximately $1.54 billion by year-end.

The GEO Group (NYSE:GEO) has announced its schedule for first quarter 2025 financial results release and conference call. The earnings release will take place on Wednesday, May 7, 2025, before market opening, followed by a conference call and simultaneous webcast at 11:00 AM Eastern Time on the same day.

The conference call will be hosted by George Zoley (Executive Chairman), J. David Donahue (CEO), and Mark Suchinski (CFO). Participants can join via telephone using 1-877-250-1553 (U.S.) or 1-412-542-4145 (International). A live audio webcast will be available on GEO's investor relations website, with replay access until May 14, 2025.

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.