Geo Group (the) Stock Earnings Reports

The GEO Group reported strong Q1 2026 results driven by contracts won in 2025, with revenues of $705.2M (up 17% YoY), net income attributable to GEO of $38.3M ($0.29/diluted share, +96% YoY), and adjusted EBITDA of $131.4M (+32% YoY). Key growth drivers included activation of three company-owned ICE facilities (adding ~6,000 beds), expansion of secure transportation contracts (including a new 5-year U.S. Marshals Service contract), the ISAP 5 electronic monitoring contract (with a shift to higher-priced GPS ankle monitors), and a new ICE skip-tracing contract. GEO raised full-year 2026 guidance: revenues $2.95B–$3.1B, GAAP net income $153M–$166M ($1.10–$1.25/sh), adjusted EBITDA $525M–$545M, and CapEx $137.5M–$162.5M. Liquidity was bolstered by a $100M expansion of the revolving credit facility; cash was ~$80M and net debt ~$1.53B (net leverage <3.2x EBITDA). Management repurchased ~3.6M shares in Q1 (~$50M), leaving ~$359M available under the buyback authorization. Management highlighted upside risks not in guidance: additional activations of idle facilities (~6,000 company-owned idle beds potentially >$300M annual revenue at full occupancy), continued mix-shift in ISAP toward GPS and case management, ramp of skip-tracing services, and further transportation growth. They are in discussions with ICE regarding potential sales of select facilities (no definitive agreements), which could be used to reduce debt and fund buybacks. Near-term pressures included a decline in ICE census (from ~24,000 to ~21,000), some payment timing issues tied to recent DHS funding/lapse, and modest Q1 revenue headwinds from ISAP pricing changes. Overall, GEO emphasizes improved margins from lower-than-expected labor/overtime, a stronger capital structure, and multiple avenues for upside in 2026.