The GEO Group Announces Contract Modification for Company-Owned, 1,328-Bed Karnes ICE Processing Center

Rhea-AI Summary

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.

Positive

• Contract modification increases annualized revenue by $23 million
• Total expected annualized revenue of $79 million in first full year
• Long-term contract security through August 2029
• Facility expansion to mixed populations increases operational flexibility

Negative

• None.

BOCA RATON, Fla.--(BUSINESS WIRE)-- The GEO Group, Inc. (NYSE: GEO) (“GEO” or the “Company”) announced today that U.S. Immigration and Customs Enforcement (“ICE”) has entered into a contract modification of the current intergovernmental service agreement (“IGSA”) for the GEO-owned, 1,328-bed Karnes ICE Processing Center (the “Center) in Karnes City, Texas to transition the Center from housing adult males only to housing mixed populations. GEO provides support services for ICE at the Center under an IGSA between Karnes County and ICE, that is effective through August 2029. GEO’s support services include the exclusive use of the Center by ICE, along with security, maintenance, and food services, as well as access to recreational amenities, medical care, and legal counsel.

Under the revised IGSA, GEO is expected to generate approximately $79 million in annualized revenues in the first full year of operations, which is expected to represent incremental annualized revenues of approximately $23 million, with margins consistent with GEO’s company-owned Secure Services facilities.

George C. Zoley, Executive Chairman of GEO, said, “Our company-owned Karnes ICE Processing Center has played an important role in helping ICE meeting the diverse policy priorities of four Presidential Administrations. We are proud of our 40-year public-private partnership with the agency, and we stand ready to continue to help the federal government meet its expanded immigration enforcement priorities.”

About The GEO Group

The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 99 facilities totaling approximately 79,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.

Use of forward-looking statements

This news release may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements and any such forward-looking statements are qualified in their entirety by reference to the cautionary statements and risk factors contained in GEO's filings with the U.S. Securities and Exchange Commission including its Form 10-K, 10-Q and 8-K reports. All forward-looking statements speak only as of the date of this news release and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements. Readers are strongly encouraged to read the full cautionary statements and risk factors contained in GEO’s filings with the U.S. Securities and Exchange Commission, including those referenced above. GEO disclaims any obligation to update or revise any forward-looking statements, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250307822674/en/

Pablo E. Paez, (866) 301 4436

Executive Vice President, Corporate Relations

Source: The GEO Group, Inc.

FAQ

How much additional revenue will GEO Group generate from the Karnes ICE Processing Center contract modification?

The contract modification will generate an additional $23 million in annualized revenue, bringing total expected annual revenue to $79 million in the first full year.

What is the capacity of GEO Group's Karnes ICE Processing Center?

The Karnes ICE Processing Center has a capacity of 1,328 beds.

When does GEO Group's Karnes facility contract with ICE expire?

The intergovernmental service agreement (IGSA) for the Karnes facility runs through August 2029.

What changes are being made to GEO Group's Karnes ICE Processing Center operations?

The facility is transitioning from housing adult males only to accommodating mixed populations.

What services does GEO provide at the Karnes ICE Processing Center?

GEO provides facility usage, security, maintenance, food services, recreational amenities, medical care, and legal counsel access.