Prison operator Geo Group Q2 revenue beats expectations, sets $300 mln share buyback plan

Geo

06/08/2025 11:09

Overview

Geo Group Q2 revenue of $636.2 mln beats analyst expectations, per LSEG data

Adjusted net income for Q2 beats estimates, reaching $30.7 mln, per LSEG data

Company announces $300 mln share repurchase program

Outlook

Geo Group expects full-year 2025 revenue of $2.56 bln

Company sees full-year 2025 adjusted EBITDA between $465 mln and $490 mln

Geo Group projects Q3 2025 adjusted net income of $0.20-$0.23 per share

Company expects Q4 2025 revenue between $658 mln and $673 mln

Result Drivers

ICE CONTRACTS - New contracts with ICE for Delaney Hall and North Lake facilities are expected to generate significant annualized revenues, contributing to Q2 revenue growth

DEBT REDUCTION - Reduction in costs for debt extinguishment from $82.3 mln in Q2 2024 to $0.6 mln in Q2 2025 improved net income

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$636.20 mln
$621.30 mln (6 Analysts)
Q2 EPS
$0.21
Q2 Adjusted Net Income
Beat
$30.70 mln
$23.50 mln (6 Analysts)
Q2 Net Income
$29.10 mln
Q2 Adjusted EBITDA
$118.60 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the business support services peer group is "buy"

Wall Street's median 12-month price target for Geo Group Inc is $39.00, about 33.7% above its August 5 closing price of $25.84

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nBw1yHmy2a

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)