Geo Group Q2 revenue beats on new contracts, lower labor costs

GEO group

06/08/2026 12:06

Overview
US secure facilities service provider's Q2 revenue rose 15% yr/yr, beating analyst expectations
Company repurchased 1.6 mln shares for $36.6 mln in Q2
Q2 results driven by new contracts and lower labor costs

Outlook
GEO raises FY26 net income guidance to $168 mln-$175 mln, or $1.27-$1.32 per share
Company sees FY26 revenue at $2.95 bln-$3.05 bln and adjusted EBITDA at $550 mln-$560 mln
GEO says guidance does not include contributions from new ICE contracts or Florida facilities in 2026

Result Drivers
NEW CONTRACTS - Co said Q2 revenue growth was driven by contracts entered into throughout 2025
LOWER LABOR COSTS - Operating expenses continued to be favorably impacted by lower labor costs in Q2
GROWTH OPPORTUNITIES - Co said financial performance was driven by new growth opportunities captured in 2025 and normalizing in 2026

Company press release: ID:nBw3x96pFa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$732.10 mln
$721.43 mln (4 Analysts)
Q2 EPS
 
$0.36
 
Q2 Adjusted Net Income
Beat
$48.80 mln
$39.98 mln (2 Analysts)
Q2 Net Income
 
$47.50 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 The GEO Group, Inc. is $34.00, about 8.2% above its August 5 closing price of $31.42
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads
Aug 5 - Prison operator CoreCivic Q2 revenue misses estimates; hikes forecast
Aug 4 - Family of man who died in ICE detention in New Jersey alleges medical negligence in custody
Aug 4 - Canada's Dexterra Q2 revenue slightly misses estimates, FCF rises

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)