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Mar 31
GEO Q1 2025 Earnings Report
The GEO Group reported modest earnings with stable revenues and continued investments aimed at supporting long-term growth.
Key Takeaways
GEO posted steady Q1 results with $604.6M in revenue and $19.6M in net income. While operating income declined YoY, the company made significant investments in ICE facility contracts, setting the stage for growth in H2 2025.
Revenue held steady at $604.6M, nearly flat from Q1 2024.
Net income was $19.6M with diluted EPS of $0.14.
Operating income declined due to increased administrative and payroll expenses.
GEO announced over $130M in new annualized ICE facility contracts, setting up for strong H2.
GEO
GEO
GEO Revenue by Geographic Location
Revenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
GEO expects higher overhead and capital expenditures in H1 2025, with revenue and profitability growth expected in H2 due to new ICE contracts.
Positive Outlook
- Expected full-year revenue of ~$2.53B.
- Anticipates Adjusted EBITDA of $465M–$490M in 2025.
- Full-year EPS guidance of $0.77 to $0.89.
- Net debt reduction target of $150M–$175M.
- Strong contract wins for ICE facilities with over $130M in new annual revenue.
Challenges Ahead
- H1 2025 pressured by higher operating and payroll expenses.
- Front-loaded payroll taxes impacting Q1 margins.
- Operating income down from $79.6M in Q1 2024 to $60.9M.
- Adjusted EBITDA declined YoY by ~$17.9M.
- No revenue impact yet from recently announced ICE contracts.