GEO Group Inc Surges to Top 346 in Trading Volume with $280 Million Turnover Despite Stock Price Decline

On May 7, 2025, The GEO Group, Inc. (GEO) saw a significant surge in trading volume, with a turnover of $280 million, marking a 44.93% increase from the previous day. This surge placed GEO among the top 346 most actively traded stocks for the day. However, the stock price experienced a decline of 10.04%, marking the third consecutive day of losses, with a cumulative drop of 13.74% over the past three days.

The GEO Group, Inc. reported its financial results for the first quarter of 2025, highlighting total revenues of $604.6 million and a net income of $19.6 million, or $0.14 per diluted share. The company's Adjusted EBITDA for the quarter was $99.8 million. Compared to the first quarter of 2024, the net income attributable to GEO decreased from $22.7 million, or $0.14 per diluted share, while total revenues slightly decreased from $605.7 million. The first quarter of 2025 results also reflected an increase in general and administrative expenses by approximately $5 million compared to the same period in 2024, partly due to the reorganization of the management team in anticipation of future growth projects.

During the first quarter of 2025, GEO announced two significant contract awards for the reactivation of two company-owned facilities, totaling 2,800 beds and representing over $130 million in annualized revenues. The company also made a significant investment commitment of $70 million to strengthen its capabilities to deliver expanded detention capacity, secure transportation, and electronic monitoring services to ICE and the federal government. Additionally, GEO completed a reorganization of its senior management team to oversee the operational execution of expected future growth activity.

Looking ahead, GEO's financial guidance for 2025 reflects a tale of two halves of the year. The first half is expected to be impacted by higher overhead and operating expenses, as well as increased capital expenditures to position the company for future growth. This growth is anticipated to begin layering in during the second half of 2025 and normalize in 2026. The company also remains focused on reducing its net debt and deleveraging its balance sheet, with an expected reduction of approximately $150 million to $175 million in total net debt by the end of 2025, bringing the total net debt to approximately $1.54 billion.