The GEO Group, Inc.GEO
Recorded
The GEO Group, Inc. 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
PeriodQ2 2026Duration44 min
Key takeaways
- The GEO Group reported second quarter 2026 revenues of approximately $732.1 million, a 15% increase from $636.2 million in the second quarter of 2025.
- Net income attributable to GEO operations was approximately $47.5 million, or $0.36 per diluted share, up 63% from $29.1 million, or $0.21 per diluted share, in the prior year quarter.
- Adjusted EBITDA increased 20% to approximately $142 million from $118.6 million in the prior year quarter.
- Owned and leased secured services revenues rose 16% driven by activation of three company-owned ICE facilities, partly offset by revenue loss from the sale of the Lawton, Oklahoma facility and de-population of Lee County, New Mexico.
- Managed only contracts revenues increased 30%, primarily due to a joint venture for managing the North Florida ICE Detention Facility and transportation revenue increases.
- Electronic monitoring and supervision services revenues decreased by approximately 3.5% despite reduced pricing on the ICE ISAF contract, reflecting a favorable technology and case management mix shift.
- Operating expenses increased 12% due to activation of ICE facility contracts and increased occupancy, partially offset by lower labor costs.
- General and administrative expenses remained steady at approximately 9% of revenue.
- Net interest expense decreased by approximately $4 million year over year due to reduced net debt.
- Effective tax rate for the quarter was approximately 28.7%.
- The company repurchased approximately 1.6 million shares for $37 million in Q2 2026, totaling 10.1 million shares repurchased for $177 million since August 2025, with $323 million remaining under the $500 million authorization.
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