GEO · The GEO Group, Inc.

The GEO Group delivered strong Q1 2026 results with revenues surging 17% to $705.2 million and Adjusted EBITDA rising 32% to $131.4 million, driven by new contracts won in 2025 representing up to $520 million in annualized revenues, the largest in company history. Key drivers included activations of four ICE facilities adding ~$300 million annualized revenue, expansions in secure transportation services worth ~$60 million, a new ISAP electronic monitoring contract scaling GPS participants to over 48,000, a $60 million/year skip tracing contract starting March 2026, and two Florida state contracts worth $100 million transitioning July 1, 2026. Net income attributable to GEO Operations doubled 96% to $38.3 million, aided by lower-than-expected labor costs. Management, led by Chairman and CEO George C. Zoley, highlighted 2025's record wins normalizing in 2026 and upside from facility reactivations, ISAP volume, skip tracing, and transportation growth. The company raised FY2026 guidance to revenues of $2.95-3.10 billion, net income $153-166 million ($1.15-1.25/share), and Adjusted EBITDA $525-545 million, with Q2 at $715-725 million revenue and $33-39 million net income. Balance sheet remains solid with $80 million cash, $1.61 billion debt, net leverage below 3.2x TTM Adjusted EBITDA, bolstered by a $100 million revolver expansion. Share repurchases of 3.6 million shares for $50 million underscore capital allocation to enhance shareholder value amid attractive asset base of 50,000 owned beds.