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Dec 31, 2024
GEO Q4 2024 Earnings Report
GEO Group reported a decline in earnings for Q4 2024 due to increased administrative expenses and restructuring costs.
Key Takeaways
GEO Group's Q4 2024 revenue was $607.7 million, nearly flat compared to the previous year. However, net income dropped to $15.5 million from $25.2 million in Q4 2023 due to higher administrative and restructuring costs. Adjusted EBITDA was $108.0 million, down from $129.0 million in Q4 2023. The company continues to focus on deleveraging, expecting to reduce net debt by up to $175 million in 2025.
Revenue remained stable at $607.7 million, compared to $608.3 million in Q4 2023.
Net income fell to $15.5 million, impacted by restructuring and higher administrative costs.
Adjusted EBITDA declined 16% YoY to $108.0 million due to increased expenses.
Company plans to reduce total net debt by $150-$175 million in 2025.
Forward Guidance
GEO Group expects moderate revenue growth in 2025, with a focus on debt reduction and expansion in government contracts.
Positive Outlook
- Expected revenue growth in 2025 driven by new government contracts.
- Planned debt reduction of $150-$175 million improving financial flexibility.
- Expansion of electronic monitoring and secure transportation services.
- Continued investment in rehabilitation and reentry programs.
- Strong backlog of service contracts supporting long-term stability.
Challenges Ahead
- Higher administrative expenses may continue to weigh on profitability.
- Potential contract renegotiations could impact future revenue.
- Regulatory risks surrounding private detention services remain a challenge.
- Interest expense remains a burden on net income.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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