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