GEO Group Expands Share Repurchase Authorization and Delivers Record-Breaking Growth in Contracts and Revenue

New $500 Million Repurchase Authorization Underscores Capital Strength

The GEO Group’s latest report shows the company is firing on all cylinders: posting record contract wins, a notable jump in revenues, and a massive $500 million boost to its share repurchase authorization. These moves, together with ongoing balance sheet improvements, send a clear message about management’s confidence and the company’s operational momentum going into 2026.

Record Contract Wins Set Stage for Future Revenue Growth

One of the standout developments in 2025 is GEO’s entry into or expansion of contracts totaling over $460 million in new annualized revenues—described as the largest single-year new business haul in company history. These contracts, set to normalize by 2026, come primarily from agreements to house ICE detainees and secure government contracts across five large facilities. Additional transportation and corrections management contracts are expected to generate another $190 million in annualized revenues when at full scale.

This surge highlights not only increased demand for GEO’s core services but also its ability to quickly activate and monetize underutilized assets, including 6,000 available high security beds. GEO also highlighted significant progress in electronic monitoring services, with a new two-year ISAP contract from ICE estimated to be valued at over $1 billion.

Financial Performance Shows Strong Upside Amid Asset Realignments

For the third quarter of 2025, GEO reported total revenues of $682.34 million and net income attributable to GEO of $173.94 million ($1.24 per diluted share), substantially higher than the $26.32 million ($0.19 per diluted share) in the same quarter of 2024. Adjusted net income for Q3 was $35.0 million, or $0.25 per diluted share, reflecting robust underlying business performance despite litigation-related charges and asset sales.

The company’s Adjusted EBITDA for the third quarter hit $120.09 million, nearly level with last year despite the timing of contract activations and various non-cash adjustments.

Asset Divestitures, Litigation, and Balance Sheet Improvement Drive Strategic Focus

The third quarter results included a one-time gain from asset sales of $232.4 million, but also saw charges related to legal contingencies (primarily the Nwauzor v. GEO case) and some restructuring costs. While these non-cash adjustments affect reported earnings, they reflect active portfolio management as the company recycles capital into higher-value assets. The sales of the Lawton and Hector Garza facilities raised over $322 million in cash, part of which funded the purchase of the Western Region Detention Facility.

GEO continues to chip away at debt: net debt fell by $275 million over nine months, ending Q3 with $1.4 billion in net debt and a net leverage ratio of 3.2x Adjusted EBITDA, suggesting ongoing improvements in financial flexibility and capital allocation discipline.

Guidance and Shareholder Returns Highlight Ongoing Upside

Looking forward, GEO forecasts full year 2025 revenues of around $2.6 billion, adjusted EBITDA between $455–$465 million, and adjusted net income per diluted share of $0.84–$0.87. The updated guidance includes cost-saving measures and factors in the ISAP contract's lower initial pricing offset by expected volume and service mix improvements.

The new share repurchase authorization—now standing at $500 million through 2029, with $458.4 million remaining—positions the company to flexibly return capital to shareholders, taking advantage of market conditions or undervalued shares as it sees fit.

Takeaway: Growth Pipeline, Deleveraging, and Capital Returns Drive GEO’s Momentum

GEO’s record-breaking contract activity, share buybacks, and active portfolio management all point to a company executing on its strategy. Investors should keep an eye on continued new contract ramp-up, the company’s ability to capture synergies from scale, and updates on the litigation front as potential drivers of upside. With ample liquidity and a proven track record for new business wins, GEO is positioned for continued operational and financial gains in 2026 and beyond.

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