Prison operator GEO Group rises after US ICE contract award

Geo

01/10/2025 18:49

** Shares of private prison provider GEO Group GEO.N up 6.5% at $21.83 on Weds after U.S. Immigration and Customs Enforcement contract win

** GEO late Tues said its subsidiary, BI Incorporated, was awarded a two-year contract by ICE for the "continued provision of electronic monitoring, case management, and supervision services under the Intensive Supervision Appearance Program," per the statement

** A dollar value wasn't provided for the contract, effective today, which has an additional one-year option period

** Also, peer CoreCivic's CXW.N stock up 2.4% at $20.84 after co on Weds announced it was awarded a new contract at its Diamondback facility under an Intergovernmental Services Agreement between the Oklahoma Department of Corrections and ICE

** The five-year contract commenced Sept 30 for the 2,160-bed facility, which has been idle since 2010, and is expected to generate approx $100 mln annual revenue once it's fully activated, CXW said

** Including moves on the session, Boca Raton, Florida-based GEO's shares down 22% YTD, while Brentwood, Tennessee-based CXW's stock off ~4% in 2025

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))