GEO Group secures ICE contract for Georgia facility

BOCA RATON, Fla. - The GEO Group, Inc. (NYSE:GEO), a diversified government service provider with a market capitalization of $3.73 billion, announced a contract modification with U.S. Immigration and Customs Enforcement (ICE) to activate an immigration processing center in Georgia. This development, effective as of Monday, is expected to generate significant additional annual revenue for the company, building upon its current annual revenue of $2.42 billion.

The contract pertains to the 1,868-bed D. Ray James Facility in Folkston, Georgia, which will operate under an existing intergovernmental service agreement. The agreement includes the already operational 1,118-bed Folkston ICE Processing Center. With this modification, GEO anticipates approximately $66 million in incremental annualized revenues, with profit margins aligning with those of its company-owned Secure Services facilities. According to InvestingPro data, the company’s gross profit margin stands at 26.26%, with analysts expecting continued profit growth this year.

GEO will provide a range of services at the facility, including security, maintenance, food services, as well as access to recreational amenities, medical care, and legal counsel. The activation of the D. Ray James Facility is in response to the need for increased federal immigration processing center bedspace.

George C. Zoley, Executive Chairman of GEO, commented on the company’s longstanding relationship with ICE, which spans over four decades, and expressed readiness to support the federal government’s immigration enforcement priorities.

The GEO Group operates in the United States, Australia, South Africa, and the United Kingdom, offering services that encompass the design, development, and support of secure facilities and processing centers. Their operations include managing approximately 98 facilities with a capacity of about 77,000 beds, and employing up to 18,000 people globally. The company has demonstrated strong performance, with InvestingPro data showing a remarkable 95.43% return over the past year and an EBITDA of $420.45 million in the last twelve months.

The company’s statement includes forward-looking information, and readers are advised to view these with caution as they involve assumptions and risks that could cause actual results to differ materially. The GEO Group has directed readers to their filings with the U.S. Securities and Exchange Commission for a comprehensive understanding of these risks. For deeper insights into GEO’s financial health and future prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, which provide expert analysis on over 1,400 US stocks.

This announcement is based on a press release statement from The GEO Group, Inc.

In other recent news, The GEO Group reported its first-quarter 2025 financial results, which fell short of analyst expectations. The company announced earnings per share (EPS) of $0.14, missing the forecasted $0.19, and reported revenue of $604.6 million, below the anticipated $611.81 million. This earnings miss was attributed to increased operating and administrative expenses. Despite the setback, GEO Group expressed optimism for future growth, supported by new contracts with U.S. Immigration and Customs Enforcement (ICE). The company expects these contracts to significantly contribute to revenue in the latter half of the year. Additionally, GEO Group announced the sale of its Lawton Correctional Facility to the Oklahoma Department of Corrections for $312 million, a move aimed at reducing debt and strengthening its financial position. Fitch Ratings recently initiated coverage on GEO Group, assigning a B+ issuer rating, which reflects the company’s efforts to manage its capital structure. The company continues to focus on expanding its detention capacity and electronic monitoring services to meet federal government needs.

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