The GEO (US:GEO)2025-11-06 11:30Financial Performance - For Q3 2025, GEO reported total revenues of $682.3 million, up from $603.1 million in Q3 2024, representing a 13.2% increase[7]. - Net income attributable to GEO for Q3 2025 was $173.9 million, or $1.24 per diluted share, compared to $26.3 million, or $0.19 per diluted share, in Q3 2024[3]. - Adjusted EBITDA for Q3 2025 was $120.1 million, slightly up from $118.6 million in Q3 2024[7]. - Revenues for Q3 2025 reached $682,341, an increase from $603,125 in Q3 2024, representing a growth of approximately 13.1%[54]. - Net income attributable to The GEO Group, Inc. for YTD 2025 was $222,606, compared to $16,475 in YTD 2024, showing a significant increase[54]. - Operating income for Q3 2025 was $40,700, down from $82,371 in Q3 2024, reflecting a decrease of approximately 50.6%[54]. - Net Income for Q3 2025 was $173,922,000, a significant increase from $26,289,000 in Q3 2024, representing a growth of 560%[56]. - Adjusted EBITDA for Q3 2025 reached $120,093,000, slightly up from $118,636,000 in Q3 2024, indicating a 1.2% increase[56]. - The company projects FY 2025 Net Income Attributable to GEO to be between $254,000,000 and $259,000,000[59]. - Adjusted EBITDA for FY 2025 is expected to be between $455,000,000 and $465,000,000[59]. - The projected Net Income Attributable to GEO per diluted share for FY 2025 is estimated to be between $1.81 and $1.85[59]. Debt and Financial Guidance - GEO has reduced its net debt by approximately $275 million, with net debt totaling around $1.4 billion at the end of Q3 2025[26]. - The updated financial guidance for Q4 2025 anticipates GAAP Net Income in the range of $0.23 to $0.27 per diluted share on revenues of $651 million to $676 million[21]. - Total Debt, Net is projected to be $1,500,000,000 for FY 2025[59]. - Interest expense for YTD 2025 was $122,582, down from $147,437 in YTD 2024, reflecting a decrease of approximately 16.8%[54]. - The company anticipates a total leverage ratio of 3.3 for FY 2025[59]. - Net debt is defined as gross principal debt less cash from restricted subsidiaries, with a focus on reducing outstanding debt to strengthen capital structure[39]. Contracts and Revenue Growth - The company entered into new or expanded contracts representing over $460 million in new annualized revenues expected to normalize in 2026, the largest amount in its history[8]. - The company expects to generate over $300 million in incremental annualized revenues from five newly contracted facilities at full occupancy in 2026[12]. - A new two-year contract for electronic monitoring services under the ISAP program was awarded, valued at over $1 billion, with anticipated cost savings of $2 million to $3 million per quarter starting in 2026[20]. Share Repurchase and Capital Expenditures - GEO repurchased approximately 1.97 million shares for $41.6 million during Q3 2025, with a total share repurchase authorization increased to $500 million[27]. - The company has authorized a $500 million share repurchase program to enhance shareholder value[49]. - Capital Expenditures for FY 2025 are expected to be between $200,000,000 and $205,000,000[59]. Assets and Legal Challenges - The total assets as of September 30, 2025, were $3,809,273, up from $3,632,080 as of December 31, 2024, indicating a growth of approximately 4.9%[51]. - The company reported a contingent litigation reserve of $37,600 for Q3 2025, indicating ongoing legal challenges[54]. - The company aims to capture additional growth opportunities and improve company-wide occupancy rates at its facilities[49]. Losses and Adjusted Income - The company reported a loss on asset divestitures of $232,381,000 in Q3 2025[56]. - Adjusted Net Income for Q3 2025 was $34,970,000, compared to $29,052,000 in Q3 2024, reflecting an increase of 20.5%[56].