GEO
GEO GroupDDocument history
Earnings documents stored for GEO.
Investor releaseQuarter not tagged2026-08-155 Revealing Analyst Questions From GEO Group’s Q2 Earnings Call
StockStory
5 Revealing Analyst Questions From GEO Group’s Q2 Earnings Call
GEO Group’s second quarter was marked by contract-driven growth and a significant expansion in federal partnerships, but the market responded negatively despite results that exceeded Wall Street’s expectations. Management attributed the strong revenue and profit gains to new and expanded contracts with agencies like ICE and the US Marshals Service, particularly noting increased facility activations and a shift toward more intensive monitoring in its ISAP program. CEO George Zoley emphasized that “our better than expected performance reflects significant revenue growth from the contracts that we entered into throughout 2025,” highlighting the impact of last year’s record new business wins and recent policy changes affecting facility utilization. Is now the time to buy GEO? Find out in our full research report (it’s free). Revenue: $732.1 million vs analyst estimates of $721.8 million (15.1% year-on-year growth, 1.4% beat) EPS (GAAP): $0.36 vs analyst estimates of $0.29 (26.2% beat) Adjusted EBITDA: $142 million vs analyst estimates of $132.9 million (19.4% margin, 6.9% beat) The company dropped its revenue guidance for the full year to $3 billion at the midpoint from $3.03 billion, a 0.8% decrease EPS (GAAP) guidance for the full year is $1.30 at the midpoint, beating analyst estimates by 6.4% EBITDA guidance for the full year is $555 million at the midpoint, above analyst estimates of $538.6 million Operating Margin: 13.9%, up from 11.3% in the same quarter last year Market Capitalization: $4.06 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Joe Gomes (NOBLE Capital): Asked about the reasons behind the one-year delay of Florida facility contracts and the impact on prior revenue guidance. CEO George Zoley confirmed the delay was due to unresolved budget issues, and that prior guidance included some expected revenues from these facilities. Gomes (NOBLE Capital): Inquired whether ICE’s reimbursement for capital expenditures in new contracts was a new practice and how it affects future CapEx. Zoley explained it is relatively new and reduces the need for unusual startup CapEx going forward. Gomes (NOBLE Capital):…Read full documentShow less
GEO Group’s second quarter was marked by contract-driven growth and a significant expansion in federal partnerships, but the market responded negatively despite results that exceeded Wall Street’s expectations. Management attributed the strong revenue and profit gains to new and expanded contracts with agencies like ICE and the US Marshals Service, particularly noting increased facility activations and a shift toward more intensive monitoring in its ISAP program. CEO George Zoley emphasized that “our better than expected performance reflects significant revenue growth from the contracts that we entered into throughout 2025,” highlighting the impact of last year’s record new business wins and recent policy changes affecting facility utilization. Is now the time to buy GEO? Find out in our full research report (it’s free). Revenue: $732.1 million vs analyst estimates of $721.8 million (15.1% year-on-year growth, 1.4% beat) EPS (GAAP): $0.36 vs analyst estimates of $0.29 (26.2% beat) Adjusted EBITDA: $142 million vs analyst estimates of $132.9 million (19.4% margin, 6.9% beat) The company dropped its revenue guidance for the full year to $3 billion at the midpoint from $3.03 billion, a 0.8% decrease EPS (GAAP) guidance for the full year is $1.30 at the midpoint, beating analyst estimates by 6.4% EBITDA guidance for the full year is $555 million at the midpoint, above analyst estimates of $538.6 million Operating Margin: 13.9%, up from 11.3% in the same quarter last year Market Capitalization: $4.06 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Joe Gomes (NOBLE Capital): Asked about the reasons behind the one-year delay of Florida facility contracts and the impact on prior revenue guidance. CEO George Zoley confirmed the delay was due to unresolved budget issues, and that prior guidance included some expected revenues from these facilities. Gomes (NOBLE Capital): Inquired whether ICE’s reimbursement for capital expenditures in new contracts was a new practice and how it affects future CapEx. Zoley explained it is relatively new and reduces the need for unusual startup CapEx going forward. Gomes (NOBLE Capital): Questioned prospects for growth in the ISAP program, given flat participant numbers. Zoley indicated ICE’s current focus is on increasing detention capacity but noted ISAP could grow rapidly if policy shifts. Brendan McCarthy: Asked if ICE must reach 100,000 detention beds before expanding ISAP and about the outlook for the skip tracing contract. Zoley confirmed the agency’s focus on 100,000 beds and expects the skip tracing contract to begin ramping in the second half of the year. Greg Gibas (Northland Securities): Sought details on post-asset sale capital allocation and leverage targets. CFO Shayn March indicated proceeds would be used for debt repayment and potentially share repurchases, subject to debt agreement restrictions. Looking ahead, the StockStory team will be watching (1) the pace and completion of new facility activations and further contract wins with ICE, (2) progress on potential asset sales to ICE and any resulting changes to capital allocation, and (3) the impact of technology mix shifts in the ISAP-V program on revenue and margins. Outcomes related to policy changes or budgetary developments could also influence the company’s performance. GEO Group currently trades at $31.64, in line with $31.42 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
Investor releaseQuarter not tagged2026-08-12Earnings Estimates Rising for Geo Group (GEO): Will It Gain?
Zacks
Earnings Estimates Rising for Geo Group (GEO): Will It Gain?
Geo Group (GEO) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company. The upward trend in estimate revisions for this private prison operator reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. Consensus earnings estimates for the next quarter and full year have moved considerably higher for Geo Group, as there has been strong agreement among the covering analysts in raising estimates. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The company is expected to earn $0.35 per share for the current quarter, which represents a year-over-year change of +40.0%. The Zacks Consensus Estimate for Geo Group has increased 16.48% over the last 30 days, as three estimates have gone higher compared to no negative revisions. The company is expected to earn $1.31 per share for the full year, which represents a change of +52.3% from the prior-year number. The revisions trend for the current year also appears quite promising for Geo Group, with three estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 8.89%. The promising estimate revisions have helped Geo Group earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. While strong estimate revisions for Geo Group have attracted decen…Read full documentShow less
Geo Group (GEO) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company. The upward trend in estimate revisions for this private prison operator reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. Consensus earnings estimates for the next quarter and full year have moved considerably higher for Geo Group, as there has been strong agreement among the covering analysts in raising estimates. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The company is expected to earn $0.35 per share for the current quarter, which represents a year-over-year change of +40.0%. The Zacks Consensus Estimate for Geo Group has increased 16.48% over the last 30 days, as three estimates have gone higher compared to no negative revisions. The company is expected to earn $1.31 per share for the full year, which represents a change of +52.3% from the prior-year number. The revisions trend for the current year also appears quite promising for Geo Group, with three estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 8.89%. The promising estimate revisions have helped Geo Group earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. While strong estimate revisions for Geo Group have attracted decent investments and pushed the stock 6.6% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Geo Group Inc (The) (GEO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Investor releaseQuarter not tagged2026-08-12Should GEO Group’s Buyback and New ICE Contract Shift the Earnings Outlook for GEO (GEO) Investors?
Simply Wall St.
Should GEO Group’s Buyback and New ICE Contract Shift the Earnings Outlook for GEO (GEO) Investors?
The GEO Group recently completed a US$179.61 million share repurchase program that retired 10,097,801 shares, while reporting higher second-quarter 2026 revenue of US$732.07 million and net income of US$47.5 million, alongside increased full-year 2026 earnings guidance and new quarterly forecasts. Complementing these results, a new five-year U.S. Immigration and Customs Enforcement contract for the 1,320-bed Rivers Facility in North Carolina is expected to add about US$80 million in annual revenues in its first full year of operations, underscoring the company’s continued reliance on large federal detention agreements. We’ll now examine how the raised 2026 earnings guidance, supported by the new ICE Rivers Facility contract, influences GEO Group’s investment narrative. Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. To own GEO Group, you need to be comfortable with a business that leans heavily on U.S. federal detention and immigration enforcement contracts, and the political risk that comes with them. The Rivers Facility ICE contract and raised 2026 earnings guidance support the short term catalyst of higher utilization and earnings, but they also deepen GEO’s exposure to the key risk of potential shifts in immigration policy or funding that could quickly change facility demand. Among the recent announcements, the completion of GEO’s US$179.61 million share repurchase program, retiring 10,097,801 shares, stands out in the context of rising guidance and new ICE contracts. It tightens the share count at the same time management is signaling higher 2026 net income expectations and adding about US$80 million in anticipated annual revenue from the Rivers Facility, magnifying the earnings impact per share if current federal detention trends hold. Yet, against this momentum, investors should also be aware of how quickly sentiment and funding for private ICE detention could shift... Read the full narrative on GEO Group (it's free!) GEO Group's narrative projects $3.7 billion revenue and $126.3 million earnings by 2029. This requires 10.4% yearly revenue growth and a $146.8 million earnings decrease from $273.1 million today. Uncover how GEO Group's forecasts yield a $33.75 fair value, a 6% upside to its current…Read full documentShow less
The GEO Group recently completed a US$179.61 million share repurchase program that retired 10,097,801 shares, while reporting higher second-quarter 2026 revenue of US$732.07 million and net income of US$47.5 million, alongside increased full-year 2026 earnings guidance and new quarterly forecasts. Complementing these results, a new five-year U.S. Immigration and Customs Enforcement contract for the 1,320-bed Rivers Facility in North Carolina is expected to add about US$80 million in annual revenues in its first full year of operations, underscoring the company’s continued reliance on large federal detention agreements. We’ll now examine how the raised 2026 earnings guidance, supported by the new ICE Rivers Facility contract, influences GEO Group’s investment narrative. Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. To own GEO Group, you need to be comfortable with a business that leans heavily on U.S. federal detention and immigration enforcement contracts, and the political risk that comes with them. The Rivers Facility ICE contract and raised 2026 earnings guidance support the short term catalyst of higher utilization and earnings, but they also deepen GEO’s exposure to the key risk of potential shifts in immigration policy or funding that could quickly change facility demand. Among the recent announcements, the completion of GEO’s US$179.61 million share repurchase program, retiring 10,097,801 shares, stands out in the context of rising guidance and new ICE contracts. It tightens the share count at the same time management is signaling higher 2026 net income expectations and adding about US$80 million in anticipated annual revenue from the Rivers Facility, magnifying the earnings impact per share if current federal detention trends hold. Yet, against this momentum, investors should also be aware of how quickly sentiment and funding for private ICE detention could shift... Read the full narrative on GEO Group (it's free!) GEO Group's narrative projects $3.7 billion revenue and $126.3 million earnings by 2029. This requires 10.4% yearly revenue growth and a $146.8 million earnings decrease from $273.1 million today. Uncover how GEO Group's forecasts yield a $33.75 fair value, a 6% upside to its current price. Some of the most optimistic analysts were already assuming GEO could reach about US$4.0 billion in revenue and US$203.7 million in earnings by 2029, so this new ICE contract and higher 2026 guidance may either reinforce that bullish view or prompt a rethink, depending on how you weigh the upside from expanded detention against the risk that governments might eventually move away from large private contracts. Explore 4 other fair value estimates on GEO Group - why the stock might be worth just $33.75! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your GEO Group research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision. Our free GEO Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate GEO Group's overall financial health at a glance. Every day counts. These free picks are already gaining attention. See them before the crowd does: The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 16 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. The future of work is here. Discover the 37 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. The latest GPUs need a type of rare earth metal called Terbium and there are only 28 companies in the world exploring or producing it. Find the list for free. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GEO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]
Investor releaseQuarter not tagged2026-08-08Geo Group Q2 Earnings Call Highlights
MarketBeat
Geo Group Q2 Earnings Call Highlights
Interested in Geo Group Inc (The)? Here are five stocks we like better. Strong second-quarter performance: Revenue rose 15% to $732.1 million, net income increased 63% to $47.5 million, and adjusted EBITDA grew 20% to $142 million, driven by contracts awarded in 2025. ICE expansion supports future growth: GEO added contracts covering roughly 6,000 beds and expects to activate the 1,188-bed Big Horn and 1,320-bed Rivers facilities by the end of 2026. The company’s contracted ICE capacity is projected to reach about 29,500 beds, excluding additional idle capacity. 2026 outlook raised despite delays: GEO increased its full-year adjusted EBITDA guidance to $550 million-$560 million and revenue guidance to $2.95 billion-$3.05 billion, while Florida contract transitions were postponed to July 2027 and elevated capital spending is expected to continue. GEO Group: High-Risk Stock With High-Reward Potential Geo Group (NYSE:GEO) reported higher second-quarter results as revenue from contracts awarded in 2025 increased, while the company raised its full-year earnings and adjusted EBITDA outlook. Revenue for the second quarter of 2026 rose 15% to approximately $732.1 million from $636.2 million a year earlier, Chief Financial Officer Shayn March said. Net income attributable to GEO operations increased 63% to approximately $47.5 million, or $0.36 per diluted share, compared with $29.1 million, or $0.21 per share, in the prior-year quarter. Adjusted EBITDA rose 20% to approximately $142 million. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Chairman, Chief Executive Officer and Founder George Zoley said the performance reflected the ramp-up of contracts entered into during 2025, when GEO was awarded new or expanded business representing up to approximately $520 million in annual revenue. GEO said it entered into new contracts during 2025 to house U.S. Immigration and Customs Enforcement detainees at four facilities, representing approximately $280 million in annual revenue and roughly 6,000 beds. The company’s active ICE bed count is now approximately 27,000 beds, with current census across those facilities at about 24,000. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Zoley said ICE’s overall population was approximately 68,000 people across 225 locations, primarily short-term jail facilities. GEO experienced a 20% increase in ICE popula…Read full documentShow less
Interested in Geo Group Inc (The)? Here are five stocks we like better. Strong second-quarter performance: Revenue rose 15% to $732.1 million, net income increased 63% to $47.5 million, and adjusted EBITDA grew 20% to $142 million, driven by contracts awarded in 2025. ICE expansion supports future growth: GEO added contracts covering roughly 6,000 beds and expects to activate the 1,188-bed Big Horn and 1,320-bed Rivers facilities by the end of 2026. The company’s contracted ICE capacity is projected to reach about 29,500 beds, excluding additional idle capacity. 2026 outlook raised despite delays: GEO increased its full-year adjusted EBITDA guidance to $550 million-$560 million and revenue guidance to $2.95 billion-$3.05 billion, while Florida contract transitions were postponed to July 2027 and elevated capital spending is expected to continue. GEO Group: High-Risk Stock With High-Reward Potential Geo Group (NYSE:GEO) reported higher second-quarter results as revenue from contracts awarded in 2025 increased, while the company raised its full-year earnings and adjusted EBITDA outlook. Revenue for the second quarter of 2026 rose 15% to approximately $732.1 million from $636.2 million a year earlier, Chief Financial Officer Shayn March said. Net income attributable to GEO operations increased 63% to approximately $47.5 million, or $0.36 per diluted share, compared with $29.1 million, or $0.21 per share, in the prior-year quarter. Adjusted EBITDA rose 20% to approximately $142 million. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Chairman, Chief Executive Officer and Founder George Zoley said the performance reflected the ramp-up of contracts entered into during 2025, when GEO was awarded new or expanded business representing up to approximately $520 million in annual revenue. GEO said it entered into new contracts during 2025 to house U.S. Immigration and Customs Enforcement detainees at four facilities, representing approximately $280 million in annual revenue and roughly 6,000 beds. The company’s active ICE bed count is now approximately 27,000 beds, with current census across those facilities at about 24,000. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Zoley said ICE’s overall population was approximately 68,000 people across 225 locations, primarily short-term jail facilities. GEO experienced a 20% increase in ICE populations over the prior six weeks after passage of the Secure America Act restored baseline appropriations for ICE and Customs and Border Protection following a partial government shutdown, he said. The company also announced two five-year ICE support-services contracts to activate previously idle facilities: The 1,188-bed Big Horn facility in Hudson, Colorado, is expected to generate approximately $85 million in annual revenue in its first full year of operations. The GEO-owned 1,320-bed Rivers facility in Winton, North Carolina, is expected to generate approximately $80 million in annual revenue in its first full year of operations. → No Hangover: Revisiting Microsoft One Week After Earnings ICE will reimburse GEO for capital expenditures required to reactivate the facilities and provide funding for startup expenses, Zoley said. The company expects both facilities to be activated by the end of 2026 and to reach normalized operations and earnings contribution in early 2027. Once activated, GEO’s ICE beds under contract are expected to total approximately 29,500. GEO said it retains approximately 4,500 idle beds at five company-owned high-security facilities. At full capacity, those beds could produce approximately $250 million in combined incremental annual revenue, according to Zoley. Revenue growth also reflected expanded secure transportation services for ICE and the U.S. Marshals Service. GEO signed a five-year U.S. Marshals contract in 2025 covering 26 federal judicial districts in 14 states, while also expanding ground transportation services at seven ICE facilities. The company expects its Big Horn and Rivers contracts to provide a combined approximately $20 million in additional annual transportation-services revenue after operations normalize in early 2027. In electronic monitoring, GEO said its ISAP V contract continued to shift toward higher-priced monitoring technologies and more case-management services. The ISAP program had approximately 184,000 participants, including about 54,000 on GPS ankle monitors, up from 17,000 in early 2025. Approximately 116,000 participants were assigned to case-management services. March said electronic monitoring and supervision revenue declined by less than $3 million, or approximately 3.5%, from a year earlier despite reduced pricing under the ISAP V contract. Zoley said the favorable mix shift could increase revenue and earnings even if total participation remains relatively stable. The company received no second-quarter revenue from its skip-tracing contract, which Zoley attributed to the lapse in ICE appropriations during the government shutdown. He said GEO expects the contract to begin ramping during the second half of 2026 and indicated that an estimated $60 million annualized revenue opportunity remained reasonable. GEO increased its 2026 guidance, projecting GAAP net income of $168 million to $175 million, or $1.27 to $1.32 per diluted share, on revenue of $2.95 billion to $3.05 billion. The company now expects adjusted EBITDA of $550 million to $560 million for the year. The revised outlook excludes earnings from the Big Horn and Rivers activations, as well as two Florida managed-only contracts that have been rescheduled. The 1,884-bed Graceville facility and 985-bed Bay facility, representing about $100 million in combined annual revenue, are now expected to transition to GEO on July 1, 2027, rather than this year. Zoley said unresolved budget issues caused the delay. GEO expects unreimbursed capital expenditures of $135 million to $145 million in 2026, followed by CapEx below $100 million in 2027. March said startup capital spending has been elevated as the company prepared for ICE-facility reactivations, while ICE reimbursement for reactivation CapEx is relatively new. During the quarter, GEO repurchased approximately 1.6 million shares for about $37 million. Since the current repurchase program was authorized in August 2025, the company has bought back 10.1 million shares for approximately $177 million. It had about $323 million remaining under its $500 million authorization. At quarter-end, GEO had approximately $55 million in cash and cash equivalents, $1.54 billion of total debt and about $300 million of available liquidity. Total net leverage was below three times adjusted EBITDA, March said. Zoley also said GEO is engaged in discussions with ICE regarding potential sales of several turnkey processing centers, contingent on GEO retaining long-term support-services contracts to operate them. He said there was no definitive agreement or timeline and no assurance that transactions would occur. If facilities are sold, GEO intends to use proceeds to reduce debt, continue share repurchases and support general corporate purposes. March added that debt agreements place restrictions on the initial use of any sale proceeds, but the company would seek to return capital to shareholders after satisfying those requirements. The GEO Group (NYSE:GEO) is a leading provider of correctional, detention and community reentry services to government agencies around the world. As a real estate investment trust, the company specializes in the design, financing, development and operation of secure facilities for adult and juvenile offenders, immigration detainees and individuals requiring mental health treatment or substance abuse programming. GEO's integrated service model also encompasses electronic monitoring, rehabilitative programming and post-release supervision aimed at reducing recidivism and enhancing public safety. GEO's portfolio spans a range of facility types, including medium- and maximum-security correctional institutions, residential reentry centers, mental health treatment units and immigration detention centers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Geo Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.
Investor releaseQuarter not tagged2026-08-06Geo Group (GEO) Q2 Earnings and Revenues Beat Estimates
Zacks
Geo Group (GEO) Q2 Earnings and Revenues Beat Estimates
Geo Group (GEO) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +32.14%. A quarter ago, it was expected that this private prison operator would post earnings of $0.19 per share when it actually produced earnings of $0.29, delivering a surprise of +52.63%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Geo Group, which belongs to the Zacks Government Services industry, posted revenues of $732.07 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.58%. This compares to year-ago revenues of $636.17 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Geo Group shares have added about 94.9% since the beginning of the year versus the S&P 500's gain of 12.8%. While Geo Group has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Geo Group was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) s…Read full documentShow less
Geo Group (GEO) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +32.14%. A quarter ago, it was expected that this private prison operator would post earnings of $0.19 per share when it actually produced earnings of $0.29, delivering a surprise of +52.63%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Geo Group, which belongs to the Zacks Government Services industry, posted revenues of $732.07 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.58%. This compares to year-ago revenues of $636.17 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Geo Group shares have added about 94.9% since the beginning of the year versus the S&P 500's gain of 12.8%. While Geo Group has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Geo Group was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.30 on $767.73 million in revenues for the coming quarter and $1.20 on $2.99 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Government Services is currently in the top 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Banzai International, Inc. (BNZI), another stock in the broader Zacks Business Services sector, has yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $2.92 per share in its upcoming report, which represents a year-over-year change of +95.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Banzai International, Inc.'s revenues are expected to be $2.8 million, down 14.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Geo Group Inc (The) (GEO) : Free Stock Analysis Report Banzai International, Inc. (BNZI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Investor releaseQuarter not tagged2026-08-06The GEO Group, Inc. Q2 2026 Earnings Call Summary
Moby
The GEO Group, Inc. Q2 2026 Earnings Call Summary
Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance beat was driven by the normalization of record-breaking 2025 contract wins, representing approximately $520 million in annual revenue. ICE populations at GEO facilities increased 20% over the last six weeks following the restoration of baseline appropriations via the Secure America Act. The company is pivoting toward a support services model, aiming to sell facility real estate to the government while retaining long-term operational management contracts. ISAP-V contract performance is being sustained by a significant technology mix shift, with GPS ankle monitor participants increasing from 17,000 to 54,000 since early 2025. Management attributes the improved outlook to the strength of results in the first half of the year, driven by new growth opportunities captured in 2025, expanded secure transportation services, and a technology shift toward higher-priced monitoring devices within the ISAP contract. GEO currently houses over one-third of the national ICE population, positioning the company as a primary partner in the government's 100,000-bed capacity target. Guidance was raised to reflect first-half strength but excludes potential contributions from the newly announced Bighorn and Rivers facility activations expected in early 2027. Management expects total capital expenditures to decline below $100 million in 2027 as the current heavy reactivation cycle for idle facilities concludes. The skip tracing contract is expected to ramp up in the second half of 2026 following the resolution of federal funding lapses. Two Florida managed-only contracts totaling $100 million in annual revenue have been delayed to July 2027 due to unresolved state budgetary issues. Future upside potential is tied to the reactivation of 4,500 remaining idle beds, which could generate over $250 million in incremental annual revenue at full occupancy. ICE has begun purchasing turnkey processing centers at valuations averaging over $300,000 per bed, establishing a benchmark for GEO's potential asset sales. The company repurchased 1.6 million shares for $37 million in Q2, signaling management's view that the stock remains undervalued relative to asset replacement costs. Net leverage has fallen below 3x adjusted EBITDA, provid…Read full documentShow less
Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance beat was driven by the normalization of record-breaking 2025 contract wins, representing approximately $520 million in annual revenue. ICE populations at GEO facilities increased 20% over the last six weeks following the restoration of baseline appropriations via the Secure America Act. The company is pivoting toward a support services model, aiming to sell facility real estate to the government while retaining long-term operational management contracts. ISAP-V contract performance is being sustained by a significant technology mix shift, with GPS ankle monitor participants increasing from 17,000 to 54,000 since early 2025. Management attributes the improved outlook to the strength of results in the first half of the year, driven by new growth opportunities captured in 2025, expanded secure transportation services, and a technology shift toward higher-priced monitoring devices within the ISAP contract. GEO currently houses over one-third of the national ICE population, positioning the company as a primary partner in the government's 100,000-bed capacity target. Guidance was raised to reflect first-half strength but excludes potential contributions from the newly announced Bighorn and Rivers facility activations expected in early 2027. Management expects total capital expenditures to decline below $100 million in 2027 as the current heavy reactivation cycle for idle facilities concludes. The skip tracing contract is expected to ramp up in the second half of 2026 following the resolution of federal funding lapses. Two Florida managed-only contracts totaling $100 million in annual revenue have been delayed to July 2027 due to unresolved state budgetary issues. Future upside potential is tied to the reactivation of 4,500 remaining idle beds, which could generate over $250 million in incremental annual revenue at full occupancy. ICE has begun purchasing turnkey processing centers at valuations averaging over $300,000 per bed, establishing a benchmark for GEO's potential asset sales. The company repurchased 1.6 million shares for $37 million in Q2, signaling management's view that the stock remains undervalued relative to asset replacement costs. Net leverage has fallen below 3x adjusted EBITDA, providing increased flexibility for capital allocation and shareholder returns. A government shutdown caused a temporary lapse in revenues for the new skip tracing contract during the second quarter of 2026, though funding has since been restored. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Delays were caused by unresolved budgetary issues, resulting in a one-year push-out to July 2027. Management noted that the full-year guidance raise would have been even higher if these revenues had remained in the 2026 forecast. ICE aims to consolidate from 225 smaller locations into fewer, larger facilities to reach a 100,000-bed capacity. Management believes the government will prioritize reactivating former high-security facilities rather than building new ones from scratch. The sale process involves a two-step procurement: an initial information submission, followed by facility validation and final pricing for the next contract term based on existing facility valuations. GEO is currently in active discussions for the sale of several turnkey facilities while insisting on retaining long-term support services contracts. While overall participant counts are stable, revenue is benefiting from a shift toward more intensive, higher-priced ankle monitoring over phone apps. Management expects ISAP could see dramatic increases in 2027 once the government meets its initial physical detention capacity goals.
Investor releaseQuarter not tagged2026-08-06Geo Group: Q2 Earnings Snapshot
Associated Press
Geo Group: Q2 Earnings Snapshot
BOCA RATON, Fla. (AP) — BOCA RATON, Fla. (AP) — Geo Group Inc. (GEO) on Thursday reported second-quarter profit of $47.5 million. On a per-share basis, the Boca Raton, Florida-based company said it had net income of 36 cents. Earnings, adjusted for one-time gains and costs, were 37 cents per share. The results topped Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 28 cents per share. The private prison operator posted revenue of $732.1 million in the period, also surpassing Street forecasts. Three analysts surveyed by Zacks expected $720.7 million. For the current quarter ending in September, Geo Group said it expects revenue in the range of $755 million to $805 million. The company expects full-year earnings to be $1.27 to $1.32 per share, with revenue ranging from $2.95 billion to $3.05 billion. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on GEO at https://www.zacks.com/ap/GEO
Investor releaseQuarter not tagged2026-08-06GEO Group Shares Decline Amid Higher Q2 Financial Results
MT Newswires
GEO Group Shares Decline Amid Higher Q2 Financial Results
GEO Group (GEO) shares were down over 1% in Thursday trading amid reporting higher Q2 financial resu
Investor releaseQuarter not tagged2026-08-06The GEO Group Reports Second Quarter Results and Updates Full Year 2026 Guidance
Business Wire
The GEO Group Reports Second Quarter Results and Updates Full Year 2026 Guidance
2Q26 Revenues Increased 15% to $732.1 Million 2Q26 Net Income Attributable to GEO Operations Increased 63% to $47.5 Million 2Q26 Adjusted EBITDA Increased 20% to $142.0 Million Repurchased approximately 1.6 million shares for $36.6 million in 2Q26 Guidance for FY26 Revenues of $2.95-$3.05 Billion Guidance for FY26 Net Income Attributable to GEO Operations Increased to $168-$175 Million, or $1.27-$1.32 Per Diluted Share Guidance for FY26 Adjusted EBITDA Increased to $550-$560 Million BOCA RATON, Fla., August 06, 2026--(BUSINESS WIRE)--The GEO Group, Inc. (NYSE: GEO) ("GEO", "we" or the "Company"), a leading provider of contracted support services for secure facilities, processing centers, and reentry centers, as well as enhanced in-custody rehabilitation, post-release support, and electronic monitoring programs, reported its financial results for the second quarter 2026, updated full year 2026 financial guidance, and provided financial guidance for the third and fourth quarters 2026. For the second quarter 2026, we reported total revenues of $732.1 million compared to $636.2 million for the second quarter 2025, reflecting a 15 percent increase. We reported second quarter 2026 net income attributable to GEO Operations of $47.5 million, or $0.36 per diluted share, compared to net income attributable to GEO Operations of $29.1 million, or $0.21 per diluted share, for the second quarter 2025, reflecting a 63 percent increase in net income attributable to GEO Operations. Second quarter 2026 results reflect $1.7 million, pre-tax, in combined loss on asset divestitures/impairment, start-up expenses, transaction fees, and employee restructuring expenses. Excluding these items, we reported adjusted net income for the second quarter 2026 of $48.8 million, or $0.37 per diluted share, compared to $30.7 million, or $0.22 per diluted share, for the second quarter 2025. We reported second quarter 2026 Adjusted EBITDA of $142.0 million, compared to $118.6 million for the second quarter 2025, reflecting a 20 percent increase. Our second quarter 2026 results reflect revenue growth from the contracts that we entered into throughout 2025. Operating Expenses continued to be favorably impacted by lower labor costs during the second quarter of 2026. George C. Zoley, GEO’s Chairman, Chief Executive Officer and Founder, said, "We are very pleased with our strong second quarter result…Read full documentShow less
2Q26 Revenues Increased 15% to $732.1 Million 2Q26 Net Income Attributable to GEO Operations Increased 63% to $47.5 Million 2Q26 Adjusted EBITDA Increased 20% to $142.0 Million Repurchased approximately 1.6 million shares for $36.6 million in 2Q26 Guidance for FY26 Revenues of $2.95-$3.05 Billion Guidance for FY26 Net Income Attributable to GEO Operations Increased to $168-$175 Million, or $1.27-$1.32 Per Diluted Share Guidance for FY26 Adjusted EBITDA Increased to $550-$560 Million BOCA RATON, Fla., August 06, 2026--(BUSINESS WIRE)--The GEO Group, Inc. (NYSE: GEO) ("GEO", "we" or the "Company"), a leading provider of contracted support services for secure facilities, processing centers, and reentry centers, as well as enhanced in-custody rehabilitation, post-release support, and electronic monitoring programs, reported its financial results for the second quarter 2026, updated full year 2026 financial guidance, and provided financial guidance for the third and fourth quarters 2026. For the second quarter 2026, we reported total revenues of $732.1 million compared to $636.2 million for the second quarter 2025, reflecting a 15 percent increase. We reported second quarter 2026 net income attributable to GEO Operations of $47.5 million, or $0.36 per diluted share, compared to net income attributable to GEO Operations of $29.1 million, or $0.21 per diluted share, for the second quarter 2025, reflecting a 63 percent increase in net income attributable to GEO Operations. Second quarter 2026 results reflect $1.7 million, pre-tax, in combined loss on asset divestitures/impairment, start-up expenses, transaction fees, and employee restructuring expenses. Excluding these items, we reported adjusted net income for the second quarter 2026 of $48.8 million, or $0.37 per diluted share, compared to $30.7 million, or $0.22 per diluted share, for the second quarter 2025. We reported second quarter 2026 Adjusted EBITDA of $142.0 million, compared to $118.6 million for the second quarter 2025, reflecting a 20 percent increase. Our second quarter 2026 results reflect revenue growth from the contracts that we entered into throughout 2025. Operating Expenses continued to be favorably impacted by lower labor costs during the second quarter of 2026. George C. Zoley, GEO’s Chairman, Chief Executive Officer and Founder, said, "We are very pleased with our strong second quarter results and improved full year outlook. Our financial performance in the first half of 2026 has been driven by the new growth opportunities we captured in 2025 and are normalizing this year. Last year was the most successful period for new business wins in our company’s history, and we expect 2026 to continue to be very active as well. We remain focused on pursuing new growth opportunities and allocating capital to enhance long-term value for our shareholders, and we believe that our stock continues to offer a very attractive investment opportunity." Results for the First Six Months of 2026 For the first six months of 2026, we reported total revenues of $1.44 billion compared to $1.24 billion for the first six months of 2025, reflecting a 16 percent increase. We reported net income attributable to GEO Operations for the first six months of 2026 of $85.8 million, or $0.65 per diluted share, compared to net income attributable to GEO Operations of $48.7 million, or $0.35 per diluted share, for the first six months of 2025, reflecting a 76 percent increase in net income attributable to GEO Operations. Results for the first six months of 2026 reflect $2.1 million, pre-tax, in combined loss on asset divestitures/impairment, start-up expenses, transaction fees, employee restructuring expenses, and close-out expenses. Excluding these items, we reported adjusted net income for the first six months of 2026 of $87.4 million, or $0.66 per diluted share, compared to $50.3 million, or $0.36 per diluted share, for the first six months of 2025. We reported Adjusted EBITDA for the first six months of 2026 of $273.4 million, compared to $218.4 million for the first six months of 2025, reflecting a 25 percent increase. Operational Highlights We entered into a five-year support services contract, effective July 9, 2026, with U.S. Immigration and Customs Enforcement ("ICE") for the activation of a federal immigration processing center at the 1,188-bed Big Horn Facility in Hudson, Colorado, while also entering into a lease agreement with the Facility owner. The Big Horn Facility support services contract is expected to generate approximately $85 million in annual revenues in the first full year of operations. We entered into a five-year support services contract, effective August 1, 2026, with ICE for the activation of a federal immigration processing center at our GEO-owned, 1,320-bed Rivers Facility in Winton, North Carolina. The Rivers Facility support services contract is expected to generate approximately $80 million in annual revenues in the first full year of operations. Under both contracts, ICE will reimburse GEO for the capital expenditures needed to reactivate these two facilities, as well as provide funding for start-up expenses during the activation period. We expect the activation of the Big Horn Facility and Rivers Facility to be completed by the end of 2026, with both facilities expected to achieve normalized operations and earnings contribution in early 2027. Financial Guidance Today, we updated our financial guidance for the full year 2026 and issued our financial guidance for the third quarter 2026 and the fourth quarter 2026. We increased our full year 2026 Net Income Attributable to GEO Operations guidance to a range of $168 million to $175 million, or $1.27 to $1.32 per diluted share on annual revenues of $2.95 billion to $3.05 billion and based on an effective tax rate of approximately 30 percent, inclusive of known discrete items. We increased our full year 2026 Adjusted EBITDA guidance to a range of $550 million to $560 million. We expect total unreimbursed Capital Expenditures for the full year 2026 to be between $135 million and $145 million. For the third quarter 2026, we expect Net Income Attributable to GEO Operations to be in a range of $45 million to $48 million, or $0.35 to $0.37 per diluted share, on quarterly revenues of $755 million to $805 million. We expect third quarter 2026 Adjusted EBITDA to be between $140 million and $145 million. For the fourth quarter 2026, we expect Net Income Attributable to GEO Operations to be in a range of $37 million to $41 million, or $0.28 to $0.31 per diluted share, on quarterly revenues of $758 million to $808 million. We expect fourth quarter 2026 Adjusted EBITDA to be between $137 million and $142 million. Our updated guidance does not include any earnings contribution from our new Big Horn and Rivers ICE contracts since we expect the activation period for these facilities to be completed by the end of 2026, achieving normalized earnings contribution in early 2027. Our updated guidance also does not include any earnings contribution from our previously announced managed-only contracts for the 1,884-bed Graceville Facility and the 985-bed Bay Facility in the State of Florida. These two managed-only contracts, which are valued at approximately $100 million in combined annual revenues, are now expected to transition to GEO on July 1, 2027. We believe there are several sources of potential upside that are not currently included in our guidance. With respect to revenues, sources of potential upside include additional growth in our U.S. Secure Services segment from the reactivation of additional idle facilities and/or higher overall populations across our active facilities; additional volume increases and/or accelerated technology and service mix shift in our Intensive Supervision Appearance Program ("ISAP") contract; additional growth in our secure transportation services business; and additional revenue from higher utilization of our skip tracing services contract. With respect to expenses, our guidance assumes a more moderate contribution from labor cost savings for the second half of 2026. Balance Sheet At the end of the second quarter 2026, we had approximately $55 million in cash and cash equivalents and approximately $1.54 billion in total debt, resulting in total net debt of approximately $1.5 billion and total net leverage below 3 times Adjusted EBITDA for the trailing 12 months. At the end of the second quarter 2026, we had total available liquidity of approximately $300 million, including cash on hand and Revolver availability, to support our capital needs. Share Repurchase Program During the second quarter of 2026, we repurchased approximately 1.6 million shares of GEO common stock at an aggregate cost of approximately $36.6 million. As of June 30, 2026, we had repurchased approximately 10.1 million shares of GEO common stock at an aggregate cost of approximately $177 million under our $500 million share repurchase authorization, bringing our current outstanding share count to approximately 132 million and leaving approximately $323 million of repurchase authorization available under the share repurchase program. Repurchases of GEO’s outstanding common stock will be made in accordance with applicable securities laws and may be made at our senior management’s discretion from time to time in the open market, by block purchase, through privately negotiated transactions, pursuant to a trading plan, or otherwise in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The authorization for the share repurchase program may be extended, increased, decreased, suspended or terminated by our Board of Directors in its discretion at any time. Repurchases of the Company's common stock (and the timing thereof) will depend upon market conditions, regulatory requirements, the Company's existing obligations, including its Credit Agreement, other corporate liquidity requirements and priorities and other factors as may be considered in the Company's sole discretion. The authorization for the share repurchase program does not obligate GEO to purchase any particular amount of the Company’s common stock. Conference Call Information We have scheduled a conference call and webcast for today at 1:00 PM (Eastern Time) to discuss our second quarter 2026 financial results as well as our outlook. The call-in number for the U.S. is 1-877-250-1553 and the international call-in number is 1-412-542-4145. In addition, a live audio webcast of the conference call may be accessed on the Webcasts section under the News, Events and Reports tab of GEO’s investor relations webpage at investors.geogroup.com. A replay of the webcast will be available on the website for one year. A telephonic replay of the conference call will be available through August 13, 2026, at 1-855-669-9658 (U.S.) and 1-412-317-0088 (International). The participant passcode for the telephonic replay is 1433186. About The GEO Group 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 97 facilities totaling approximately 76,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 20,000 employees. Reconciliation Tables and Supplemental Information GEO has made available Supplemental Information which contains reconciliation tables of Net Income Attributable to GEO Operations to Adjusted Net Income, and Net Income to EBITDA and Adjusted EBITDA, along with supplemental financial and operational information on GEO’s business and other important operating metrics. The reconciliation tables are also presented herein. Please see the section below titled "Note to Reconciliation Tables and Supplemental Disclosure - Important Information on GEO’s Non-GAAP Financial Measures" for information on how GEO defines these supplemental Non-GAAP financial measures and reconciles them to the most directly comparable GAAP measures. GEO’s Reconciliation Tables can be found herein and in GEO’s Supplemental Information available on GEO’s investor webpage at investors.geogroup.com. Note to Reconciliation Tables and Supplemental Disclosure –Important Information on GEO's Non-GAAP Financial Measures Adjusted Net Income, EBITDA, and Adjusted EBITDA are non-GAAP financial measures that are presented as supplemental disclosures. GEO has presented herein certain forward-looking statements about GEO's future financial performance that include non-GAAP financial measures, including Net Debt, Net Leverage, and Adjusted EBITDA. The determination of the amounts that are included or excluded from these non-GAAP financial measures is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period. While we have provided a high level reconciliation for the guidance ranges for full year 2026, we are unable to present a more detailed quantitative reconciliation of the forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because management cannot reliably predict all of the necessary components of such GAAP measures. The quantitative reconciliation of the forward-looking non-GAAP financial measures will be provided for completed annual and quarterly periods, as applicable, calculated in a consistent manner with the quantitative reconciliation of non-GAAP financial measures previously reported for completed annual and quarterly periods. Net Debt is defined as gross principal debt less cash on hand. Net Leverage is defined as Net Debt divided by Adjusted EBITDA. EBITDA is defined as net income adjusted by adding provisions for income tax, interest expense, net of interest income, and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for loss on asset divestitures/impairment, pre-tax, net loss attributable to non-controlling interests, stock-based compensation expenses, pre-tax, litigation costs and settlements, pre-tax, start-up expenses, pre-tax, transaction fees, pre-tax, employee restructuring expenses, pre-tax, close-out expenses, pre-tax, other non-cash revenue and expenses, pre-tax, and certain other adjustments as defined from time to time. Given the nature of our business as a real estate owner and support services provider, we believe that EBITDA and Adjusted EBITDA are helpful to investors as measures of our operational performance because they provide an indication of our ability to incur and service debt, to satisfy general operating expenses, to make capital expenditures, and to fund other cash needs or reinvest cash into our business. We believe that by removing the impact of our asset base (primarily depreciation and amortization) and excluding certain non-cash charges, amounts spent on interest and taxes, and certain other charges that are highly variable from year to year, EBITDA and Adjusted EBITDA provide our investors with performance measures that reflect the impact to operations from trends in occupancy rates, per diem rates and operating costs, providing a perspective not immediately apparent from net income. The adjustments we make to derive the non-GAAP measures of EBITDA and Adjusted EBITDA exclude items which may cause short-term fluctuations in income from continuing operations and which we do not consider to be the fundamental attributes or primary drivers of our business plan and they do not affect our overall long-term operating performance. EBITDA and Adjusted EBITDA provide disclosure on the same basis as that used by our management and provide consistency in our financial reporting, facilitate internal and external comparisons of our historical operating performance and our business units and provide continuity to investors for comparability purposes. Adjusted Net Income is defined as net income attributable to GEO operations adjusted for certain items which by their nature are not comparable from period to period or that tend to obscure GEO’s actual operating performance, including for the periods presented loss on asset divestitures/impairment, pre-tax, loss on extinguishment of debt, pre-tax, litigation costs and settlements, pre-tax, start-up expenses, pre-tax, transaction fees, pre-tax, employee restructuring expenses, pre-tax, close-out expenses, pre-tax, and tax effect of adjustments to net income attributable to GEO operations. Safe-Harbor Statement This press release contains forward-looking statements regarding future events and future performance of GEO that involve risks and uncertainties that could materially and adversely affect actual results, including statements regarding GEO’s financial guidance for the full year, third quarter, and fourth quarter of 2026, the $500 million share repurchase program authorized by GEO’s Board of Directors, the anticipated timing and annualized revenues related to the activation of certain facilities and new and amended contracts, GEO’s ability to capture additional growth opportunities, and the Company’s efforts to strengthen its capital structure and enhance shareholder value through capital returns. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "anticipate," "intend," "plan," "believe," "seek," "estimate," or "continue" or the negative of such words and similar expressions. Risks and uncertainties that could cause actual results to vary from current expectations and forward-looking statements contained in this press release include, but are not limited to: (1) GEO’s ability to meet its financial guidance for the full year, third quarter, and fourth quarter of 2026 given the various risks to which its business is exposed; (2) GEO’s ability to execute on the $500 million share repurchase program authorized by GEO’s Board of Directors on the timeline it expects; (3) GEO’s ability to deleverage and repay, refinance or otherwise address its debt maturities in an amount and on terms commercially acceptable to GEO, and on the timeline it expects or at all; (4) GEO’s ability to identify and successfully complete any potential sales of company-owned assets and businesses or potential acquisitions of assets or businesses on commercially advantageous terms on a timely basis, or at all; (5) changes in federal and state government policy, orders, directives, legislation and regulations that affect public-private partnerships with respect to secure, correctional and detention facilities, processing centers and reentry centers; (6) changes in federal immigration policy; (7) public and political opposition to the use of public-private partnerships with respect to secure correctional and detention facilities, processing centers and reentry centers; (8) the impact of any future global pandemic on GEO and GEO's ability to mitigate the risks associated with such pandemic; (9) GEO’s ability to sustain or improve company-wide occupancy rates at its facilities; (10) fluctuations in GEO’s operating results, including as a result of contract activations, contract terminations, contract renegotiations, changes in occupancy levels and increases in GEO’s operating costs; (11) general economic and market conditions, including changes to governmental budgets and its impact on new contract terms, contract renewals, renegotiations, per diem rates, fixed payment provisions, and occupancy levels; (12) GEO’s ability to address inflationary pressures related to labor related expenses and other operating costs; (13) GEO’s ability to timely open facilities as planned, profitably manage such facilities and successfully integrate such facilities into GEO’s operations without substantial costs; (14) GEO’s ability to win management contracts for which it has submitted proposals and to retain existing management contracts; (15) risks associated with GEO’s ability to control operating costs associated with contract start-ups; (16) GEO’s ability to successfully pursue growth opportunities and continue to create shareholder value; (17) GEO’s ability to obtain financing or access the capital markets in the future on acceptable terms or at all; (18) any adverse impact on GEO’s financial results caused by any past or future federal government shutdown; (19) risks associated with the U.S. Supreme Court agreeing to hear GEO’s appeal in the Nwauzor Case and GEO’s ability to prevail on the merits; and (20) other factors contained in GEO’s Securities and Exchange Commission periodic filings, including its Form 10-K, 10-Q and 8-K reports, many of which are difficult to predict and outside of GEO’s control. Second quarter and first six months 2026 financial tables to follow: View source version on businesswire.com: https://www.businesswire.com/news/home/20260805338921/en/ Contacts Pablo E. Paez (866) 301 4436Executive Vice President, Corporate Relations
Investor releaseQuarter not tagged2026-08-06GEO Group’s (NYSE:GEO) Q2 CY2026: Beats On Revenue, Guides for Strong Sales Next Quarter
StockStory
GEO Group’s (NYSE:GEO) Q2 CY2026: Beats On Revenue, Guides for Strong Sales Next Quarter
Private corrections company GEO Group (NYSE:GEO) reported Q2 CY2026 results exceeding the market’s revenue expectations , with sales up 15.1% year on year to $732.1 million. Guidance for next quarter’s revenue was better than expected at $780 million at the midpoint, 1.9% above analysts’ estimates. Its GAAP profit of $0.36 per share was 26.3% above analysts’ consensus estimates. Is now the time to buy GEO Group? Find out in our full research report. Revenue: $732.1 million vs analyst estimates of $721.8 million (15.1% year-on-year growth, 1.4% beat) EPS (GAAP): $0.36 vs analyst estimates of $0.29 (26.3% beat) Adjusted EBITDA: $142 million vs analyst estimates of $132.9 million (19.4% margin, 6.9% beat) The company dropped its revenue guidance for the full year to $3 billion at the midpoint from $3.03 billion, a 0.8% decrease EPS (GAAP) guidance for the full year is $1.30 at the midpoint, beating analyst estimates by 6.4% EBITDA guidance for the full year is $555 million at the midpoint, above analyst estimates of $538.6 million Operating Margin: 13.9%, up from 11.3% in the same quarter last year Market Capitalization: $4.12 billion With a global footprint spanning three continents and approximately 81,000 beds across 100 facilities, GEO Group (NYSE:GEO) operates secure facilities, processing centers, and reentry services for government agencies in the United States, Australia, and South Africa. A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $2.83 billion in revenue over the past 12 months, GEO Group is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. As you can see below, GEO Group’s sales grew at a mediocre 4.2% compounded annual growth rate over the last five years. This shows it couldn’t generate demand in any major way and is a tough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. GEO Group’s annualized revenue growth of 8% over the last two years is above its five-year trend, suggesting its demand recently accelerated. This quarter, GEO Group reported year-on-year…Read full documentShow less
Private corrections company GEO Group (NYSE:GEO) reported Q2 CY2026 results exceeding the market’s revenue expectations , with sales up 15.1% year on year to $732.1 million. Guidance for next quarter’s revenue was better than expected at $780 million at the midpoint, 1.9% above analysts’ estimates. Its GAAP profit of $0.36 per share was 26.3% above analysts’ consensus estimates. Is now the time to buy GEO Group? Find out in our full research report. Revenue: $732.1 million vs analyst estimates of $721.8 million (15.1% year-on-year growth, 1.4% beat) EPS (GAAP): $0.36 vs analyst estimates of $0.29 (26.3% beat) Adjusted EBITDA: $142 million vs analyst estimates of $132.9 million (19.4% margin, 6.9% beat) The company dropped its revenue guidance for the full year to $3 billion at the midpoint from $3.03 billion, a 0.8% decrease EPS (GAAP) guidance for the full year is $1.30 at the midpoint, beating analyst estimates by 6.4% EBITDA guidance for the full year is $555 million at the midpoint, above analyst estimates of $538.6 million Operating Margin: 13.9%, up from 11.3% in the same quarter last year Market Capitalization: $4.12 billion With a global footprint spanning three continents and approximately 81,000 beds across 100 facilities, GEO Group (NYSE:GEO) operates secure facilities, processing centers, and reentry services for government agencies in the United States, Australia, and South Africa. A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $2.83 billion in revenue over the past 12 months, GEO Group is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. As you can see below, GEO Group’s sales grew at a mediocre 4.2% compounded annual growth rate over the last five years. This shows it couldn’t generate demand in any major way and is a tough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. GEO Group’s annualized revenue growth of 8% over the last two years is above its five-year trend, suggesting its demand recently accelerated. This quarter, GEO Group reported year-on-year revenue growth of 15.1%, and its $732.1 million of revenue exceeded Wall Street’s estimates by 1.4%. Company management is currently guiding for a 14.3% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 13.2% over the next 12 months, an improvement versus the last two years. This projection is noteworthy and implies its newer products and services will spur better top-line performance. ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention. AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice. Adjusted operating margin is a key measure of profitability. Think of it as net income (the bottom line) excluding the impact of non-recurring expenses, taxes, and interest on debt - metrics less connected to business fundamentals. GEO Group has managed its cost base well over the last five years. It demonstrated solid profitability for a business services business, producing an average adjusted operating margin of 13.4%. Looking at the trend in its profitability, GEO Group’s adjusted operating margin decreased by 3.5 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. This quarter, GEO Group generated an adjusted operating margin profit margin of 14.6%, up 3.3 percentage points year on year. This increase was a welcome development and shows it was more efficient. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable. GEO Group’s EPS grew at 13.6% compounded annual growth rate over the last five years, higher than its 4.2% annualized revenue growth. However, we take this with a grain of salt because its adjusted operating margin didn’t improve and it didn’t repurchase its shares, meaning the delta came from reduced interest expenses or taxes. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. GEO Group’s two-year annual EPS growth of 156% was fantastic and topped its 8% two-year revenue growth. Diving into GEO Group’s quality of earnings can give us a better understanding of its performance. GEO Group’s adjusted operating margin has expanded over the last two years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals. In Q2, GEO Group reported EPS of $0.36, up from $0.21 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects GEO Group’s full-year EPS to shrink by 33.4% from $2.12 to $1.41. This is unusual as its revenue and operating margin are anticipated to increase, signaling the fall likely stems from “below-the-line” items such as taxes. It was good to see GEO Group beat analysts’ EPS expectations this quarter. We were also excited its EPS guidance for next quarter outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 4.8% to $32.96 immediately after reporting. GEO Group had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.
TranscriptFY2026 Q22026-08-06FY2026 Q2 earnings call transcript
Earnings source - 76 paragraphs
FY2026 Q2 earnings call transcript
Good day. Welcome to The GEO Group Second Quarter 2026 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Pablo Paez, Executive Vice President of Corporate Relations. Please go ahead.
Thank you, operator. Good afternoon, everyone. Thank you for joining us for today's discussion of The GEO Group's second quarter 2026 earnings results. With us today are George Zoley, Chairman, Chief Executive Officer, and Founder, and Shayn March, Senior Vice President and Chief Financial Officer. This afternoon, we will discuss our second quarter results as well as our outlook. We will conclude the call with a question-and-answer session. This conference call is also being webcast live or on investor website at investors.geogroup.com. Today, we will discuss non-GAAP basis information. A reconciliation from non-GAAP basis information to GAAP basis results is included in the press release and supplemental disclosure we issued this morning.
These forward-looking statements are intended to fall within the safe harbor provisions of the securities laws. Our actual results may differ materially from those in the forward-looking statements as a result of various factors contained in our Securities and Exchange Commission filings, including the Form 10-K, 10-Q, and 8-K reports. With that, please allow me to turn this call over to our Chairman, CEO, and Founder, George Zoley. George?
Thank you, Pablo. Good afternoon, everyone. Thank you for joining us. Our diversified business units continued to deliver strong financial and operational performance during the second quarter of 2026. Revenues increased 15% from the second quarter of 2025, while net income increased 63% from the same period. Our better-than-expected performance reflects significant revenue growth from the contracts that we entered into throughout 2025. As we have previously discussed, in 2025, we were awarded several new or expanded contracts that represent up to approximately $520 million in annual revenues, which represents the largest amount of new business we've won in a single year in our company's history. In our Secure Services segment, we entered into new contracts to house ICE detainees at four facilities valued at approximately $280 million in annual revenues and totaling approximately 6,000 beds, increasing our total active ICE beds to approximately 27,000.
Our current census across our active ICE facilities is approximately 24,000, representing more than one-third of the current national ICE population of approximately 68,000, which is distributed over 225 separate locations that are primarily short-term jail facilities. Over the last six weeks, we have experienced a 20% increase in ICE populations following the passage of the Secure America Act, which restored baseline appropriations funding for ICE and Customs and Border Protection after the longest partial government shutdown in U.S. history. Under the Secure America Act, ICE received $38.5 billion in funding available through September 30th, 2029. This amount is in addition to the $75 billion in funding previously allocated to ICE under the One Big Beautiful Bill, including $45 billion for detention, which is available through September 30th, 2029.
We believe the federal government is continuing to pursue the priority of increasing immigration detention capacity to 100,000 beds or more and consolidating to fewer, larger facilities. As a 40-year partner to ICE, we expect to be part of that solution. In the past few weeks, we've announced two new contracts with ICE for the activation of ICE processing centers at two previously idle facilities. We have entered into a five-year support services contract with ICE for the activation of a federal immigration processing center at the 1,188-bed Big Horn facility in Hudson, Colorado, while also entering into a lease agreement with the facility owner. The Big Horn support services contract is expected to generate approximately $85 million in annual revenues in the first full year of operations.
We have also entered into a five-year support services contract with ICE for the activation of a federal immigration processing center at the GEO-owned 1,320-bed Rivers facility in Winton, North Carolina. The Rivers support services contract is expected to generate approximately $80 million in annual revenues in the first full year of operations. Under both contracts, ICE will reimburse GEO for the CapEx needed to reactivate these two facilities, as well as providing funding for start-up expenses during the activation period. We expect the activation of the Big Horn and Rivers facilities to be completed by the end of 2026, with both facilities achieving normalized operations and earnings contribution in early 2027. Following the activation of these two facilities, our total ICE beds under contract will increase to approximately 29,500 beds.
We have also approximately 4,500 idle beds that remain available at five company-owned facilities, which are designed for high security and therefore well-suited for the current needs of the federal government. We continue to have active discussions with the federal government regarding potential reactivation of additional idle facilities. At full capacity, these 4,500 idle beds could generate approximately $250 million in combined incremental annual revenues. Our second quarter 2026 results reflect a significant expansion in our secure transportation services on behalf of both ICE and the U.S. Marshals Service. In 2025, we signed a new five-year contract with the U.S. Marshals covering 26 federal judicial districts and spanning 14 states. We have entered into new or amended contracts to expand secure ground transportation services at seven ICE facilities. The support services that we provide under our ICE Air transportation subcontract have also continued to steadily increase.
Additionally, in our new Big Horn and Rivers contracts with ICE, we are expected to generate approximately $20 million combined in additional annual transportation services revenues once normalized in early 2027. Importantly, during the second quarter of 2026, our ISAP V contract continued to experience a steady technology shift to more intensive and higher-priced monitoring devices such as ankle monitors. ISAP is the only ICE program currently in place to provide electronic monitoring and case management services for individuals on the non-detained docket. The program relies on several forms of monitoring, including GPS ankle bracelets or wrist-worn devices that provide real-time tracking, as well as the SmartLINK phone app, which relies on facial recognition, voice ID, and GPS to confirm a person's location during predetermined check-ins. The current overall ISAP count is approximately 184,000 participants.
The number of ISAP participants on GPS ankle monitors has increased to approximately 54,000 currently from 17,000 in early 2025. We also continue to experience a steady increase in the number of ISAP participants assigned to case management services, which involves staff interaction and monitoring for approximately 116,000 individuals currently. If this trend continues, the technology and case management mix shift would continue to increase the revenues and earnings generated under the ISAP contract, even if overall participation counts remain relatively stable. Thus, we continue to be optimistic about the importance and growth potential of the ISAP contract, and we believe it is also well-positioned to scale up to higher overall counts. Finally, during the second quarter of 2026, we did not receive any revenues from our new skip tracing contract, which we believe was due to the lapse in ICE appropriations funding during the government shutdown.
With the restoration of ICE funding, we are optimistic that the contract will begin to ramp up during the second half of 2026. Moving to our outlook, we have increased our net income and adjusted EBITDA guidance for 2026 to reflect the strength of our results in the first half of the year. Our updated guidance does not include any earnings contribution from our new Big Horn and Rivers contracts since we expect the activation period for these facilities to be completed by the end of 2026, achieving normalized earnings contributions in early 2027. Our updated guidance also does not include any earnings contributions from our previously announced managed only contracts for our 1,884-bed Graceville facility and our 985-bed Bay facility in the state of Florida, which have been rescheduled for implementation.
These two contracts, which are valued at approximately $100 million in combined annual revenues, are now expected to transition to GEO on July 1, 2027. Looking at our improved outlook, we believe there are still several sources of potential further upside. On the revenue side, sources of potential upside include additional growth in our Secure Services segment from the reactivation of additional idle facilities and/or higher overall population across our active facilities. Additional volume increases and our accelerated technology services mix in a shift in our ISAP contract. Additional growth in our secure transportation services business. Additional revenue from higher utilization of our skip tracing contract. On the expense side, our guidance assumes more moderate contributions from labor cost savings in the second half of the year.
Before I turn the call over to our CFO, Shayn March, for a more detailed review of our second quarter results, I'd like to highlight our continued commitment towards strengthening our capital structure, enhancing shareholder value. During the second quarter of 2026, we repurchased approximately 1.6 million shares for approximately $37 million, bringing the total shares repurchased to 10.1 million for approximately $177 million since the current share repurchase program was authorized in August 2025. Our current total outstanding share count is approximately 132 million, and we have approximately $323 million still available under our $500 million share repurchase authorization. We believe our stock continues to trade at a relatively low multiple despite the intrinsic value of our assets and our significant growth opportunities. We believe this imbalance creates a unique opportunity to enhance value for our shareholders through share repurchases.
At this time, I will turn the call over to Shayn to review our quarterly results and increased guidance.
Thank you, George. Good afternoon, everyone. Revenues for the second quarter of 2026 increased by approximately $732.1 million, up from approximately $636.2 million in the prior year's second quarter, reflecting a 15% increase. For the second quarter of 2026, we reported net income attributable to GEO operations of approximately $47.5 million, or $0.36 per diluted share. This compares to net income attributable to GEO operations of approximately $29.1 million or $0.21 per diluted share in the second quarter of 2025, reflecting a 63% increase for net income and a 71% increase for earnings per share. Our adjusted EBITDA for the second quarter of 2026 increased to approximately $142 million, up from approximately $118.6 million in the prior year's second quarter, reflecting a 20% increase. Looking at revenue trends, our owned and leased Secure Services revenues increased by approximately $55 million, or 16%, compared to prior year's second quarter.
This increase was driven by the activation of three company-owned facilities under new contracts with ICE, which was partly offset by revenue loss from the sale of the Lawton, Oklahoma facility and the depopulation of the Lee County, New Mexico facility. Quarterly revenues for our managed only contracts increased by approximately $44 million, or 30%, from prior year's second quarter. This increase was primarily driven by the joint venture agreement for the management of the North Florida ICE detention facility, as well as certain transportation revenue increases that are reported in this segment. Quarterly revenues for our reentry services increased by approximately $3 million, offset by a $3 million decline in non-residential services revenues compared to the prior year's second quarter.
Finally, second quarter 2026 revenues for our electronic monitoring and supervision services decreased by less than $3 million, or approximately 3.5%, from the prior year's second quarter, despite the reduced pricing on our ISAP V contract, which demonstrates the strength of the continued favorable technology and case management mix shift in the program. During the second quarter of 2026, our operating expenses increased by approximately 12% as a result of the activation of our ICE facility contracts and increased occupancy compared to prior year's second quarter. Operating expenses continue to be favorably impacted by lower labor costs during the second quarter of 2026. Our general and administrative expenses for the second quarter of 2026 remained steady at approximately 9% of revenue compared to prior year's second quarter.
Our second quarter 2026 results reflect a year-over-year decrease in net interest expense of approximately $4 million as a result of the reduction in our total net debt. Our effective tax rate for the second quarter of 2026 was approximately 28.7%. We have updated our guidance for the full year 2026 and issued guidance for the third and fourth quarters of 2026. We have increased our full year 2026 GAAP net income guidance to a range of $168 million-$175 million, or a range of $1.27-$1.32 per diluted share on annual revenues of $2.95 billion-$3.05 billion, and based on an effective tax rate of approximately 30%, inclusive of known discrete items. We have increased our full year 2026 adjusted EBITDA guidance to a range of $550 million-$560 million.
We expect total unreimbursed CapEx for the full year 2026 to be between $135 million and $145 million and expect CapEx to decline below $100 million in 2027. For the third quarter of 2026, we expect GAAP net income to be $45 million-$48 million, or a range of $0.35-$0.37 per diluted share on quarterly revenues of $755 million-$805 million. We expect third quarter 2026 adjusted EBITDA to be between $140 million and $145 million. For the fourth quarter of 2026, we expect GAAP net income to be $37 million-$41 million, or a range of $0.28-$0.31 per diluted share on quarterly revenues of $758 million-$808 million. We expect fourth quarter 2026 adjusted EBITDA to be between $137 million and $142 million.
We closed the second quarter of 2026 with approximately $55 million in cash and cash equivalents and approximately $1.54 billion of total debt. At the end of the second quarter of 2026, our total net debt was approximately $1.5 billion, and our total net leverage was below 3x adjusted EBITDA. At the end of the second quarter, we had total available liquidity of approximately $300 million, including cash on hand and revolver availability to support our capital needs. At this time, I will turn the call back to George.
Thank you, Shayn. To recap, we are very pleased with our strong second quarter results and the improved full-year outlook. Our financial performance in the first half of 2026 has been driven by the new growth opportunities which we captured in 2025 and are normalizing this year. Last year was the most successful period for new business wins in our company's history, and we expect 2026 to continue to be very active as well. We therefore believe that we have upside potential across our diversified business segments. We recently announced new contracts with ICE to reactivate two previously idle facilities totaling approximately 2,500 beds, with annual revenue value of approximately $165 million once operations normalize in early 2027. With these two facility activations, we now have approximately 4,500 idle high-security beds that remain available, which could generate in excess of $250 million in annual revenues at full occupancy.
We are pleased with the continued shift in technology and case management mix under our ISAP V contract, which could also provide additional upside throughout 2026. We also remain well-positioned to expand our delivery of secure ground and air transportation services for ICE and the U.S. Marshals Service beyond the significant growth we've already experienced. Finally, I'd like to provide you with an update regarding the plan by ICE and DHS to purchase existing privately-owned turnkey ICE processing centers. On our earnings call last quarter, we discussed that ICE was considering the purchase of approximately 10 privately-owned turnkey processing centers. As was disclosed recently by CoreCivic, four facilities totaling 7,187 beds already have been acquired by ICE for more than $2.2 billion at an average purchase price of more than $300,000 per bed.
Based on our current discussions, we believe that the total number of facilities that are being considered for acquisition by ICE is likely larger than the 10 that were originally contemplated. And it is possible that the number of facilities targeted for acquisition by ICE could continue to grow in the future. Following the recently completed sales, ICE now uses approximately 36 existing detention sites nationwide that are owned and operated by private contractors. CoreCivic now owns and operates approximately 11 ICE detention facilities, while GEO owns and operates 23 ICE detention facilities. We believe that future sales are likely to have similar valuations to the transactions that have already been completed, with standard adjustments with respect to geography and facility size.
We are engaged in an active process for the sale of several of our turnkey facilities, subject to mutual agreement on price and our continued management of those facilities under long-term support services contracts. We believe we have two types of assets, the buildings and the businesses of providing support services. We are pursuing a potential sale of the buildings, but we want to retain the business. We consider ourselves primarily a support services operator, and we'll place particular importance on our ability to continue our support services at any facility sold to ICE. Several of our facilities already have long-term support services contracts in place and would likely only need to be modified so as to eliminate the ownership costs, such as depreciation and property taxes, embedded in our present contracts in the event of ICE ownership.
One of these facilities has some unique and valuable assets that we believe require separate appraisal, which has likely resulted in a somewhat longer process of evaluation. Several other GEO facilities have support services contracts that expire later this year. ICE has initiated a procurement process involving four facilities that we hope will result in new long-term support services contracts being awarded. At this time, there is no definitive agreement in place with ICE and no precise timeline for the closing of any transactions. Of course, we can give no assurance that any of these transactions will take place at all. If any of the GEO facilities are sold to ICE, we intend to use the proceeds to reduce debt, continue stock repurchases, and for other general corporate purposes.
The potential sale of multiple facilities to ICE could represent a significant liquidity and shareholder value-enhancing event for our company. While the exact timing of government actions is always difficult to estimate, we remain focused on pursuing new growth opportunities and allocating capital to enhance long-term value for our shareholders. Given the intrinsic value of our assets, including 50,000 owned beds, our strong financial performance in providing diversified, secure support services, and our expected future growth, we believe our stock continues to be significantly undervalued and offers a very attractive investment opportunity. That completes our remarks. We would be glad to take questions.
We will now begin the question-and-answer session. To ask a question, you may press star, then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. At this time, we will pause momentarily to assemble our roster. The first question today comes from Joe Gomes with Noble Capital. Please go ahead.
Good afternoon, George and Shayn. Thanks for taking my questions.
Good afternoon.
I want to start out with the Florida facilities. It's a year pushout here to the right. I was wondering maybe you could give us a little more color as to why the pushout there. Secondarily on that, I'm assuming since they were supposed to start in early July this year, that there was some of those revenues that were expected in your prior guidance that you'd put out in the first quarter. Is that accurate? That would indicate that even with this pushout to the right for these particular facilities, the guide still being raised had been raised even higher if these hadn't been pushed out?
That is correct. There were some budgetary issues that remain unresolved that required the extension to July 1, 2027 of next year.
Okay, thank you for that. On the CapEx, you mentioned, George, that getting reimbursed for CapEx and some of the new contracts. If you could remind us if that is normal, if that's something new from ICE, and does that also play into the reduction in CapEx guidance on the growth side, especially for you guys for this year?
It is relatively new. The answer to the second question may be twofold, that we've spent a lot of CapEx gearing up, ready for this expansion for the reactivation of ICE facilities, and I think we'll be pretty much complete by the end of this year or early next year. The ongoing maintenance CapEx will come into play on a normal basis, but we won't have any unusual startup CapEx as we've had over the last year and a half.
Okay, great. One more from me, if I may. I know you talked about the ISAP Program, you got the two-year contract, and even though there's been some mix shift, which is helping maintain revenue under that contract. We go back a year and a half or so ago, and I think there was some thought out there that the numbers under the ISAP Program could hit well in excess of where we are today. I mean, it's been pretty flat here now for probably, what, two years. Just trying to get your feel for, is it just not a focus of ICE at this point in time that's more on the detention side?
Is there something else going on in the ISAP contract where it just, maybe in the near future, we'll start to see maybe numbers go up to where they were a couple of years ago for you guys up to that almost 400,000 level?
I think in general, the focus of ICE has been on increasing detention capacity. There's a lot of policy shifts as to who will be subject to immigration enforcement. At a later point, maybe next year, we could see ISAP increase dramatically. Right now, the focus is on increasing detention capacity.
Okay, great. Thanks for that. I'll get back in queue. Thank you.
Thanks.
The next question comes from Brendan McCarthy. Please go ahead.
Great. Good afternoon. Appreciate you taking my questions. Just to follow up on the electronic monitoring side, is it still the expectation that ICE is looking to reach 100,000 operational beds before turning to ISAP? Is that still a reasonable expectation?
I think so, for the most part. The focus within the agency and throughout the agency is to try to stand up approximately 100,000 beds. They're at a census presently of about 68,000, and we have, of that, 24,000 in our facilities. They have another 30,000 or so more beds to go. Within that process, I think there's an objective of consolidation into fewer, larger facilities down from their present 225 facilities that they use nationwide. They want to be in fewer, larger facilities with a normal detention capacity of about 100,000, not including maybe a lot of these little jails, which are just feeder locations to the main facilities that they want to have.
Understood. That makes sense. On the skip tracing contract, I know you mentioned there was not much of an impact in Q2 from the lapse in ICE funding. Is $60 million still a reasonable annualized revenue estimate from that contract? Has that changed at all? What are you seeing regarding trends in that program?
We do expect to receive another contract this quarter, possibly this month. I think that number you quoted is correct.
Okay. Last question for me, just on the potential facility sales. I know you mentioned ICE has initiated a procurement process involving four facilities. I guess, do you anticipate a potential sale lining up with the timing of a renewal, which it looks like a few of those facilities are up for a renewal this fall. Just curious if you think the timing might line up there.
Well, they're not being renewed, they're being recompeted. This is a new procurement to establish a new contract term for those facilities. We're hoping the contract term is a long contract term. I think there's a mutual interest to complete this process by the end of this quarter, hopefully, although it may spill into the next quarter. That means, as we understand it, a two-step process. There was originally an RFI, a request for information, in which potential interested parties could submit their proposal to indicate that they had such a facility in that particular location. There's four different locations. That first step has been completed. The next step is to validate where the facility is and the ability to activate it within 30 days.
We think that process can take place fairly quickly. The last step of the process is pricing on that existing facility for the next contract term. As I said earlier, I think there's a mutual interest by us and ICE that this process hopefully be completed by the end of this quarter, but it could spill into the fourth quarter.
Got it. Thanks for that clarification, George. That's all for me.
The next question comes from Greg Gibas with Northland Securities. Please go ahead.
Great. Hi, George, Shayn. Thanks for taking the questions.
Hi.
Recognize that there are no assurances of asset sales, but post-asset sales, could you maybe discuss how you're thinking about capital allocation and what your target net leverage would be, and perhaps just thoughts on buybacks versus any potential considerations for a 1031 exchange following any sale?
Hey, Greg, this is Shayn, and thanks for the question. Post any asset sales, we do have certain restrictions in our current debt agreements, how those proceeds have to be applied. Once we were able to satisfy those restrictions in the indenture and in the credit agreement, we would absolutely look to deploy as much capital as we can to returning it back to shareholders. I think it's a combination of both debt repayment and ultimately using that money to get either active with share repurchases or other forms of remuneration back to our shareholder investors.
Got it. That's helpful. Secondly, as it relates to ICE's recent push to utilize monitoring services for Haitian immigrants, would you expect that initiative to notably change the populations under the ISAP program? Similarly, we've seen that continued technology mix shift. Wondering if you could maybe quantify it in a way, like what would be the impact of moving one individual from SmartLINK to ankle monitoring?
Well, there's a corresponding decline in the SmartLINK app to individuals on the ankle monitors, and the app is far less expensive than the ankle monitors. Because of new policy shifts as to who will be subject to this immigration enforcement, like as you mentioned, the Haitians, we could see a significant increase in the number of people in the ISAP program. Most of them, we believe, would be placed under the ankle monitoring supervision technique.
Okay, thank you. I'll pass it on.
The next question comes from Kirk Ludtke with Raymond James. Please go ahead.
Hello, George, Shayn. Thank you for the call.
Thank you.
Maybe a follow-up on the 100,000-bed target. I know we've talked on past calls about ICE's efforts to build their own facilities. How many beds do you think might come from that effort?
I don't think they're building their own facilities per se. Well, they may be. Of the warehouse program, I think of the 11 that they purchased, they may be trying to activate maybe two or three. That would be maybe 5,000 beds.
The vast majority is going to have to come from other places, I guess.
It's really a reactivation of what were formerly BOP facilities that were discontinued under the Obama administration. These are generally high-security facilities, single-cell facilities, that are very desirable by ICE in expanding their detention capacity.
Got it. That's helpful. Thank you. Is there any time limits on the funding? Does this effort have to happen before the end of this administration?
No, I believe ICE has maybe approximately $36 billion left for the build-up of new facilities, and I believe that that money is allocated through the President's current term.
They've got some time for this to come to pass.
About three years.
Yeah. Got it. Then you mentioned geographic considerations. Can you elaborate on what they might be looking for?
What that means?
Yeah.
It's the difference between a cost of a facility in Oklahoma versus the cost of a facility in Colorado or in Washington or different states. Just like a house in Florida is a different cost than one in Mississippi.
And so the.
The appraisal technique that's being used is the replacement cost of that facility in that location.
Got it. That's helpful. I appreciate it. Thank you.
This concludes our question-and-answer session. I would like to turn the conference back over to George Zoley, Chairman and CEO, for any closing remarks.
Thank you for joining us today. We look forward to addressing you in the next quarter. Thank you.
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
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Marsh Q2 Earnings Beat Estimates on Consulting Unit Strength
Marsh & McLennan Companies, Inc. MRSH reported second-quarter 2026 adjusted earnings per share of $2.96, which surpassed the Zacks Consensus Estimate by 2.8%. The bottom line advanced 8.8% year over year. Consolidated revenues of $7.4 billion improved 6.2% year over year. The figure rose 5% on an underlying basis. The top line beat the consensus mark by 2%. The strong quarterly results benefited from solid growth in the Risk and Insurance Services and Consulting units. However, the upside was partially offset by elevated operating expenses, primarily due to increased compensation and benefits. Marsh price-consensus-eps-surprise-chart | Marsh Quote Total operating expenses escalated 7% year over year to $5.5 billion but came in lower than our model estimate of $5.6 billion. The year-over-year rise was due to increased compensation and benefits costs and other operating expenses. Expenses in the Risk and Insurance Services segment rose 5.1% year over year, while the Consulting segment's expenses increased 9.7%. Marsh’s adjusted operating income improved 5% year over year to $2.2 billion. The adjusted operating margin of 29.3% deteriorated 20 basis points year over year. The segment recorded revenues of $4.8 billion in the second quarter, which rose 4% year over year and 3% on an underlying basis. The reported figure beat the Zacks Consensus Estimate by 0.5%. Adjusted operating income advanced 3% year over year to $1.7 billion, which beat the consensus mark by 1.1%. Revenues of Marsh Risk, a unit within the segment, rose 6% year over year and 4% on an underlying basis to $4.1 billion. In the United States/Canada operations, revenues grew 4% on an underlying basis. International operations witnessed revenue growth of 5% year over year on an underlying basis. Among the international operations, Latin America witnessed year-over-year growth of 8% on an underlying basis. Asia Pacific’s and EMEA’s revenues improved 5% each, on an underlying basis. Another unit within the segment, Guy Carpenter's revenues of $664 million fell 2% year over year and 2% on an underlying basis. The figure missed the consensus mark by 4.4%. The unit’s revenues advanced 10% year over year and 8% on an underlying basis to $2.6 billion. The reported figure beat the Zacks Consensus Estimate by 4.9%. Adjusted operating income of $533 million climbed 11% year over year and beat the consensus ma…Read full documentShow less
Marsh & McLennan Companies, Inc. MRSH reported second-quarter 2026 adjusted earnings per share of $2.96, which surpassed the Zacks Consensus Estimate by 2.8%. The bottom line advanced 8.8% year over year. Consolidated revenues of $7.4 billion improved 6.2% year over year. The figure rose 5% on an underlying basis. The top line beat the consensus mark by 2%. The strong quarterly results benefited from solid growth in the Risk and Insurance Services and Consulting units. However, the upside was partially offset by elevated operating expenses, primarily due to increased compensation and benefits. Marsh price-consensus-eps-surprise-chart | Marsh Quote Total operating expenses escalated 7% year over year to $5.5 billion but came in lower than our model estimate of $5.6 billion. The year-over-year rise was due to increased compensation and benefits costs and other operating expenses. Expenses in the Risk and Insurance Services segment rose 5.1% year over year, while the Consulting segment's expenses increased 9.7%. Marsh’s adjusted operating income improved 5% year over year to $2.2 billion. The adjusted operating margin of 29.3% deteriorated 20 basis points year over year. The segment recorded revenues of $4.8 billion in the second quarter, which rose 4% year over year and 3% on an underlying basis. The reported figure beat the Zacks Consensus Estimate by 0.5%. Adjusted operating income advanced 3% year over year to $1.7 billion, which beat the consensus mark by 1.1%. Revenues of Marsh Risk, a unit within the segment, rose 6% year over year and 4% on an underlying basis to $4.1 billion. In the United States/Canada operations, revenues grew 4% on an underlying basis. International operations witnessed revenue growth of 5% year over year on an underlying basis. Among the international operations, Latin America witnessed year-over-year growth of 8% on an underlying basis. Asia Pacific’s and EMEA’s revenues improved 5% each, on an underlying basis. Another unit within the segment, Guy Carpenter's revenues of $664 million fell 2% year over year and 2% on an underlying basis. The figure missed the consensus mark by 4.4%. The unit’s revenues advanced 10% year over year and 8% on an underlying basis to $2.6 billion. The reported figure beat the Zacks Consensus Estimate by 4.9%. Adjusted operating income of $533 million climbed 11% year over year and beat the consensus mark of $521 million. Revenues of Mercer, a unit within this segment, grew 7% year over year and 5% on an underlying basis to $1.6 billion. The reported figure beat the Zacks Consensus Estimate by 2.4%. Wealth and Health revenues rose 8% and 3%, respectively, on an underlying basis. Career revenues grew 2% year over year on an underlying basis. Another unit within the segment, Marsh Management Consulting, recorded revenues of $1 billion, which improved 15% year over year, as well as 13% on an underlying basis. Marsh exited the second quarter with cash and cash equivalents of $1.7 billion, which declined from the 2025-end figure of $2.7 billion. Total assets of $59.7 billion increased from the $58.7 billion figure at the end of 2025. Long-term debt amounted to $18.9 billion, which rose from the $18.3 billion figure as of Dec. 31, 2025. Short-term debt amounted to $1.7 billion. Total equity of $15.4 billion rose from the 2025-end level of $15.3 billion. Net cash provided by operations totaled $835 million in the first six months of 2026 compared with $1 billion in the prior-year comparable period. Marsh bought back 4.5 million shares worth $750 million in the second quarter of 2026. MRSH currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader Business Services space are GDS Holdings Limited GDS, V2X, Inc. VVX and The GEO Group, Inc. GEO, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for GDS Holdings’ current-quarter earnings is pinned at $1.35 per share and has remained stable over the past 60 days. GDS beat earnings estimates in each of the trailing four quarters, with the average surprise being 610%. The consensus estimate for current-quarter revenues is pegged at $463.2 million, implying 14.4% year-over-year growth. The Zacks Consensus Estimate for V2X’s current-quarter earnings of $1.45 per share has remained stable over the past 60 days. VVX beat earnings estimates in each of the trailing four quarters, with the average surprise being 22.8%. The consensus estimate for current-quarter revenues is pegged at $1.2 billion, calling for 12% year-over-year growth. The Zacks Consensus Estimate for GEO Group’s current-quarter earnings is pinned at 28 cents per share and has remained stable over the past 60 days. GEO beat earnings estimates in three of the trailing four quarters and met once, with the average surprise being 25.9%. The consensus estimate for current-quarter revenues is pegged at $720.7 million, implying 13.3% year-over-year growth. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marsh (MRSH) : Free Stock Analysis Report Geo Group Inc (The) (GEO) : Free Stock Analysis Report GDS Holdings (GDS) : Free Stock Analysis Report V2X, Inc. (VVX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

