The GEO Group (GEO) Q4 2025 earnings summary

Executive summary

• Achieved record new or expanded contracts in 2025, representing up to $520 million in incremental annualized revenues, the largest in company history.

• Activated five major ICE facilities, adding 6,000 beds and hiring 2,000 new employees, including reactivation of the Adelanto ICE Processing Center.

• Completed major asset divestitures and acquisitions, including the $312 million sale of Lawton Correctional Facility and $60 million purchase of Western Region Detention Facility.

• Expanded secure transportation services for ICE and U.S. Marshals, adding $60 million in annualized revenue and securing a new five-year contract covering 26 federal judicial districts.

• Returned capital to shareholders via a $500 million share repurchase program, buying back nearly 5 million shares for over $90 million by year-end.

Financial highlights

• Q4 2025 net income was $32 million ($0.23 per diluted share) on $708 million revenue, up from $15.5 million ($0.11 per share) on $608 million revenue in Q4 2024.

• Adjusted net income for Q4 2025 was $35 million ($0.25 per share), up from $18 million ($0.13 per share) in Q4 2024.

• Full year 2025 net income was $254 million ($1.82 per share) on $2.63 billion revenue, compared to $32 million ($0.22 per share) on $2.42 billion in 2024.

• Excluding extraordinary items, full year 2025 adjusted net income was $120 million ($0.86 per share), up from $101 million ($0.75 per share) in 2024.

• Full year 2025 Adjusted EBITDA was $464 million, in line with $463 million in 2024; Q4 2025 Adjusted EBITDA was $126 million, up from $108 million in Q4 2024.

Outlook and guidance

• 2026 GAAP net income expected at $0.99–$1.07 per share on $2.9–$3.1 billion revenue; Adjusted EBITDA forecasted at $490–$510 million.

• Q1 2026 guidance: $0.17–$0.19 per share on $680–$690 million revenue; Adjusted EBITDA $107–$112 million.

• Guidance reflects margin compression from start-up expenses and gradual contract activations, with normalization expected in the second half of 2026.

• Capital expenditures for 2026 projected at $120–$155 million.