The GEO (US:GEO)2025-08-06 10:30Financial Performance - Total revenues for Q2 2025 were $636.2 million, up from $607.2 million in Q2 2024, representing an increase of approximately 9.8%[4] - Net income attributable to GEO for Q2 2025 was $29.1 million, or $0.21 per diluted share, compared to a net loss of $32.5 million, or $0.25 per diluted share, in Q2 2024[3] - Adjusted EBITDA for Q2 2025 was $118.6 million, slightly down from $119.3 million in Q2 2024[4] - For the first six months of 2025, total revenues were $1.24 billion, compared to $1.21 billion for the same period in 2024, reflecting a growth of approximately 2.5%[8] - Q2 2025 revenues increased to $636.2 million, up 4.5% from $607.2 million in Q2 2024[54] - Operating income for Q2 2025 was $72.0 million, a decrease of 10.5% compared to $80.1 million in Q2 2024[54] - Q2 2025 net income attributable to GEO was $29,108, compared to a net loss of $32,513 in YTD 2025[56] - Adjusted EBITDA for Q2 2025 was $118,597, slightly down from $119,250 in Q2 2024[56] Future Projections - The company expects full year 2025 revenues to be approximately $2.56 billion, with net income attributable to GEO projected between $1.99 and $2.09 per diluted share[24] - The company projects FY 2025 adjusted EBITDA to be between $465,000 and $490,000[60] - Net income attributable to GEO for FY 2025 is expected to range from $280,000 to $295,000[60] - The projected net interest expense for FY 2025 is $150,000 to $151,500[60] - Capital expenditures for FY 2025 are estimated to be between $200,000 and $210,000[60] - Total debt, net, is projected to be $1,400,000 for FY 2025[60] - Adjusted net income per diluted share for FY 2025 is expected to be between $0.84 and $0.94[60] Shareholder Value Initiatives - A $300 million share repurchase program has been authorized by the Board of Directors to enhance long-term shareholder value[2] - The company has authorized a $300 million share repurchase program to enhance shareholder value[49] Contracts and Revenue Generation - The company announced a 15-year contract with ICE for a federal immigration processing center expected to generate over $60 million in annualized revenues at full occupancy[11] - The North Lake Facility is projected to generate over $85 million in annualized revenues at full occupancy under a new contract with ICE[12] - The D. Ray James Facility is expected to generate approximately $66 million in incremental annualized revenues at full occupancy[13] Debt and Financial Health - As of the end of Q2 2025, net debt totaled approximately $1.7 billion, with net leverage at approximately 3.8 times Adjusted EBITDA[20] - Long-term debt decreased to $1.48 billion as of June 30, 2025, down from $1.71 billion at the end of 2024[51] - The company incurred $40,036 in interest expense in Q2 2025, down from $130,991 in Q2 2024[56] Operational Insights - Adjusted EBITDA is a key performance measure, reflecting operational performance by excluding non-cash charges and certain variable costs[41] - The company anticipates growth opportunities and aims to improve occupancy rates across its facilities[49] - The financial guidance for Q3, Q4, and full year 2025 includes risks related to debt management and operational performance[49] - The weighted average common shares outstanding increased to 138.5 million in Q2 2025 from 130.5 million in Q2 2024[54] - The company reported a weighted average diluted shares outstanding of 140,470 in Q2 2025, up from 130,518 in Q2 2024[56]