The GEO (US:GEO)2026-02-12 11:15Financial Performance - For Q4 2025, GEO reported net income of $31.8 million, or $0.23 per diluted share, compared to $15.5 million, or $0.11 per diluted share in Q4 2024, reflecting a 104% increase in net income year-over-year [5]. - Total revenues for Q4 2025 were $707.7 million, up from $607.7 million in Q4 2024, representing a 16.4% increase [6]. - Adjusted EBITDA for Q4 2025 was $126.0 million, compared to $108.0 million in Q4 2024, indicating a 16.7% growth [6]. - For the full year 2025, GEO reported net income of $254.4 million, or $1.82 per diluted share, compared to $32.0 million, or $0.22 per diluted share in 2024, marking a significant increase of 692% [12]. - Total revenues for the full year 2025 reached $2.63 billion, up from $2.42 billion in 2024, a growth of 8.6% [13]. - Adjusted EBITDA for the full year 2025 was $464.4 million, slightly up from $463.5 million in 2024 [13]. - Operating income for Q4 2025 was $83.8 million, compared to $67.9 million in Q4 2024, reflecting a 23.4% increase [48]. - Q4 2025 net income increased to $31,768,000 from $15,511,000 in Q4 2024, representing a growth of 104.5% [50]. - Adjusted EBITDA for FY 2025 reached $464,418,000, slightly up from $463,489,000 in FY 2024 [50]. Future Projections - The company expects full year 2026 GAAP Net Income to be in the range of $0.99 to $1.07 per diluted share on revenues of $2.9 billion to $3.1 billion [23]. - The company projects FY 2026 adjusted EBITDA between $490,000,000 and $510,000,000 [53]. - Net income attributable to GEO Operations for FY 2026 is expected to be between $132,500,000 and $145,500,000 [53]. - The weighted average common shares outstanding (diluted) for FY 2026 is projected to be between 134,000 and 136,000 [53]. - Capital expenditures for FY 2026 are estimated to be between $120,000,000 and $155,000,000, with growth-related spending of $10,000,000 to $25,000,000 [53]. - Total debt, net, is projected to be $1,500,000,000 for FY 2026 [53]. - Adjusted net income per diluted share for FY 2026 is expected to be between $0.99 and $1.07 [53]. Business Development - GEO entered into new contracts expected to generate approximately $520 million in annualized revenues, marking the most successful year for new business wins in the company's history [7]. - The anticipated timing and annualized revenues related to the activation of certain facilities and new contracts are part of the company's growth strategy [44]. - GEO plans to capture growth opportunities with 6,000 available high-security idle beds and expand services in electronic monitoring and secure transportation segments [10]. Financial Position - As of year-end 2025, GEO had approximately $70 million in cash and $1.65 billion in total debt, with a current net debt balance improved to approximately $1.5 billion [28]. - Total assets as of December 31, 2025, were $3.84 billion, an increase from $3.63 billion as of December 31, 2024 [46]. - The company reported a total current asset increase to $718.5 million from $500.2 million year-over-year [46]. - Net debt is defined as gross principal debt less cash from restricted subsidiaries, with net leverage calculated as net debt divided by adjusted EBITDA [38]. Shareholder Value - The company has authorized a $500 million share repurchase program to enhance shareholder value [44]. - The company reported a significant reduction in interest expense, decreasing from $268,474,000 in FY 2024 to $159,891,000 in FY 2025 [50]. - Adjusted EBITDA is expected to be provided for completed annual and quarterly periods, with management unable to predict all necessary components for forward-looking non-GAAP measures [36]. - Non-cash stock-based compensation for FY 2026 is projected at $24,500,000 [53].