Core Insights - The GEO Group operates within the private prison and immigration enforcement services industry, which has experienced significant changes due to evolving U.S. immigration policies [1] Industry Overview - The private prison industry, including companies like The GEO Group, has faced scrutiny and transformation in response to shifts in immigration enforcement and policy [1] Company Position - The GEO Group has a beneficial long position in its shares, indicating confidence in its future performance despite the industry's challenges [1]

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In addition, GEO reactivated its 1,940-bed Adelanto ICE Processing Center in California during the third quarter, which Zoley said had been underutilized due to a COVID-related court case. He said the activation of these five facilities represents the largest startup activity in GEO’s history, with a combined annualized revenue value of approximately $400 million and the hiring and training of about 2,000 new employees .Zoley said GEO entered new contracts to house ICE detainees at four facilities totaling ...

Secured approximately $520 million in new incremental annualized revenues during 2025, marking the most successful period for new business wins in the company's history. Performance was driven by the activation of five facilities totaling approximately 6,000 beds, representing the largest startup activity in GEO's history with an annualized value of $400 million. ICE detention census reached record levels of approximately 24,000, supported by increased enforcement and removal operations that also drov ...

On February 11, Hodges Capital Management Inc. disclosed a sale of 401,146 shares of The GEO Group (NYSE:GEO), an estimated $6.69 million trade based on quarterly average pricing. What happened According to a February 11 SEC filing, Hodges Capital Management Inc. reduced its position in The GEO Group (NYSE:GEO) by 401,146 shares during the fourth quarter of 2025. The estimated transaction value was $6.69 million, derived from the average closing price for the period. The fund’s quarter-end position value ...

Financial Data and Key Metrics Changes - For Q4 2025, the company reported net income of approximately $32 million, or $0.23 per diluted share, on revenues of approximately $708 million, compared to net income of approximately $15.5 million, or $0.11 per diluted share, on revenues of approximately $608 million in Q4 2024 [18][19] - Adjusted EBITDA for Q4 2025 was approximately $126 million, up from approximately $108 million in Q4 2024 [20] - For the full year 2025, net income attributable to GEO operations was approximately $254 million, or $1.82 per diluted share, on revenues of approximately $2.63 billion, compared to $32 million, or $0.22 per diluted share, on revenues of $2.42 billion in 2024 [23][24] Business Line Data and Key Metrics Changes - Owned and leased secure service revenues increased by approximately $70 million, or 23%, in Q4 2025 compared to Q4 2024, primarily driven by new contracts with ICE [20] - Managed-only contracts revenues increased by approximately $26 million, or 17%, due to the joint venture for the North Florida Detention Facility and transportation revenue increases [21] - Revenues for electronic monitoring and supervision services increased by approximately 3%, reflecting a favorable technology and case management mix shift [22] Market Data and Key Metrics Changes - The census across active ICE facilities increased from approximately 22,000 in Q3 to approximately 24,000, the highest level recorded [6] - The current ICE detention census is approximately 70,000, distributed over 225 locations, primarily short-term jail facilities [11] - The company has approximately 6,000 idle beds at six company-owned facilities, which could generate over $300 million in annualized revenues at full capacity [12] Company Strategy and Development Direction - The company aims to capture new growth opportunities that could generate up to $520 million in annualized revenues, marking the most successful period for new business wins in its history [3][32] - The company is exploring participation in the federal government's initiative to purchase and retrofit commercial warehouses for detention capacity, while also focusing on utilizing its idle facilities [13][42] - The company is pursuing additional opportunities in mental health services at the state level, indicating a diversification strategy [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential of the ICE contract, particularly with the increase in monitoring services and case management [9][10] - The company expects 2026 to be as active as 2025, with potential upside across diversified business segments [32] - Management acknowledged the impact of government funding processes on operations but indicated strong liquidity and support from lenders [14][29] Other Important Information - The company completed the sale of the Lawton, Oklahoma facility for $312 million and the Hector Garza facility for $10 million, resulting in a significant pre-tax gain [24][30] - A share repurchase program was initiated in August 2025, with approximately 5 million shares repurchased for about $91 million by year-end 2025 [16][30] - The company closed 2025 with approximately $70 million in cash and approximately $1.65 billion in total debt [28] Q&A Session Summary Question: Regarding ICE's focus on warehouse initiatives and contract delays - Management indicated that ICE is pursuing both warehouse initiatives and utilizing existing private sector bed capacity, estimating a need for at least 20,000 new beds to reach a target of 100,000 [40][41] Question: On ISAP contract participant levels and capacity - Management confirmed readiness to scale monitoring devices and case management services to meet increased participant levels as outlined in the new ISAP contract [44] Question: Stock buyback strategy given current stock price - Management acknowledged the potential for more aggressive buybacks at current stock levels, emphasizing a diligent approach to capital allocation [46][47] Question: Monitoring service margins and mix shifts - Management explained that margin compression is primarily due to a shift in service mix, with increased demand for higher-cost ankle monitors impacting overall margins [51][52] Question: Guidance for 2026 and startup expenses - Management provided insights into conservative guidance for 2026, factoring in startup expenses related to activating idle facilities, with expectations for margin normalization in the latter half of the year [70][71]

The GEO Group (NYSE:GEO) Q4 2025 Earnings call February 12, 2026 01:00 PM ET Company ParticipantsGeorge Zoley - Executive ChairmanMark Suchinski - CEOPablo Paez - EVPConference Call ParticipantsBrendan McCarthy - AnalystGreg Gibas - AnalystJoe Gomes - AnalystKirk Ludtke - AnalystMatthew Erdner - AnalystRaj Sharma - AnalystOperatorGood day, and welcome to the GEO Group Fourth Quarter 2025 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a con ...

The GEO Group (NYSE:GEO) Q4 2025 Earnings call February 12, 2026 01:00 PM ET Speaker7Good day, and welcome to the GEO Group Fourth Quarter 2025 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press Star, then one on a touch-tone phone. To withdraw your question, please press ...

Supplemental Information Fourth Quarter and Full Year 2025 The GEO Group, Inc.'s ("GEO") Unaudited Reconciliation Tables and Supplemental Disclosure presented herein speak only as of the date or period indicated, and GEO does not undertake any obligation, and disclaims any duty to update any of this information, except as required by law. GEO's future financial performance is subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that c ...

Geo Group (GEO) came out with quarterly earnings of $0.25 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this private prison operator would post earnings of $0.22 per share when it actually produced earnings of $0.25, delivering a surprise of +13.64%.Over the last four quarters, the company has surpassed consensus EPS estimates two times.Geo Group, which be ...