Adelanto ICE center to resume full intake after court approval

BOCA RATON, Fla. - The GEO Group, Inc. (NYSE: GEO), a diversified government service provider with a market capitalization of $3.74 billion, announced that the U.S. District Court, Central District of California, has authorized the full intake at its Adelanto ICE Processing Center. This decision comes after a previous injunction that restricted admissions due to COVID-19 concerns. According to InvestingPro data, GEO has demonstrated strong performance with a 97% return over the past year.

The Adelanto Center, which has a capacity of 1,940 beds, is expected to generate approximately $31 million in additional annualized revenue for GEO, adding to the company’s current annual revenue of $2.42 billion. The current contract with U.S. Immigration and Customs Enforcement (ICE), effective through December 19, 2029, includes a base period of five years with two subsequent five-year option periods. InvestingPro analysis suggests the company is currently undervalued, with analysts setting price targets between $35 and $50.

George C. Zoley, Executive Chairman of GEO, commented on the center’s role in supporting ICE and the Department of Homeland Security’s mission. He also acknowledged the professionalism of the approximately 350 employees at the Adelanto Center. The company maintains strong operational efficiency with an EBITDA of $420.45 million in the last twelve months.

The GEO Group operates 98 facilities with a total capacity of around 77,000 beds, including idle facilities and those under development. Their services encompass a range of support services for secure facilities and community reentry centers in various countries.

This news is based on a press release statement and includes forward-looking statements subject to risks, uncertainties, and assumptions as detailed in GEO’s filings with the U.S. Securities and Exchange Commission.

In other recent news, The GEO Group has reported its first-quarter 2025 earnings, which fell short of analysts’ expectations. The company posted an earnings per share (EPS) of $0.14, missing the forecasted $0.19, and revenue of $604.6 million, below the anticipated $611.81 million. Despite the earnings miss, GEO Group remains optimistic about its future, with new contracts from U.S. Immigration and Customs Enforcement (ICE) expected to drive growth. The company also announced a contract modification with ICE to activate an immigration processing center in Georgia, projected to generate approximately $66 million in additional annual revenue. Additionally, GEO Group plans to sell its Lawton Correctional Facility to the Oklahoma Department of Corrections for $312 million, a move expected to significantly reduce its debt. Fitch Ratings has initiated coverage on GEO Group, assigning a B+ issuer rating and a stable outlook. These recent developments reflect the company’s ongoing efforts to strengthen its financial position and expand its service offerings.

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