Recent Updates — GEO
The GEO Group closed an amended and restated credit agreement that maintains its $550 million revolving credit facility commitments while extending the maturity date to July 14, 2031. The amendment also increases the incremental borrowing capacity to $750 million and lifts restrictions on restricted payments, including share repurchases, subject to a leverage ratio covenant of 2.25 to 1.00. Concurrently, the company delivered notice to redeem all $650 million in outstanding aggregate principal amount of its 8.625% Senior Secured Notes due 2029 at a price of approximately $678 million plus accrued interest. The redemption is scheduled for October 15, 2026, and will be funded using net proceeds from recently announced asset sales. The GEO Group operates as a diversified government service provider specializing in secure facilities, processing centers, and community reentry services.
The GEO Group sold its three-facility Adelanto Complex in California, totaling 2,644 beds, to the U.S. Department of Homeland Security for an aggregate price of $950 million. The transaction closed concurrently with the agreement on October 2, 2026, yielding approximately $705 million in net proceeds after taxes and fees. GEO will continue managing the facilities under a long-term support services contract with ICE through December 19, 2034. Concurrently, the Board increased the share repurchase authorization by $750 million to $1.25 billion, effective through December 31, 2029. Proceeds will be used to reduce debt and buy back stock. The company operates in the private prison and government services industry.
The GEO Group reported second quarter 2026 revenues of $732.1 million, a 15% increase year-over-year, with net income attributable to operations rising 63% to $47.5 million and Adjusted EBITDA increasing 20% to $142.0 million. The company repurchased approximately 1.6 million shares for $36.6 million during the quarter. Management updated full-year 2026 guidance, raising net income expectations to a range of $168–$175 million ($1.27–$1.32 per diluted share) and Adjusted EBITDA to $550–$560 million on revenues of $2.95–$3.05 billion. Additionally, GEO announced new five-year support services contracts with U.S. Immigration and Customs Enforcement for the Big Horn Facility in Colorado and the Rivers Facility in North Carolina, expected to generate approximately $85 million and $80 million in annual revenues respectively upon normalization in early 2027. The GEO Group operates as a leading provider of contracted support services for secure facilities, processing centers, and reentry centers.