Monday, March 24, 2025
The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 103 facilities totaling approximately 83,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Investor Day. The GEO Group hosted an investor day at the end of last week, during which the Company outlined the substantial growth opportunities available under the new programs to manage undocumented migrants, as well as its goal to both significantly reduce debt and return capital to shareholders.
Secure Facilities. There is an immediate need from ICE for additional detention capacity. This is illustrated by the new contract for GEO’s 1,800 bed North Lake Facility announced last Thursday. This new contract will add $70 million of annualized revenue. Management estimates currently unused bed capacity (including the three facilities recently contracted by ICE) could add $575-$625 million to revenue.
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