The GEO Group Turns Q2 Net Loss into $29.1M Profit Amid $300M Buyback and Strategic Asset Shakeup

On August 6, 2025, The GEO Group (GEO) reported a net income of $29.1 million, or $0.21 per diluted share, for Q2 2025, reversing a $32.5 million net loss in the prior-year period. The company’s $300 million share repurchase program, announced alongside the results, aims to enhance shareholder value amid improved liquidity metrics. Total revenues rose to $636.2 million, while adjusted EBITDA dipped slightly to $118.6 million. The firm’s recent $312 million sale of the Lawton Correctional Facility and $60 million acquisition of the San Diego Detention Facility underscore strategic asset optimization. Reduced net debt to $1.47 billion and a 3.3x net leverage ratio highlight deleveraging progress.

Key operational developments included the ramp-up of ICE processing centers in Newark, New Jersey, and Baldwin, Michigan, expected to generate $60 million and $85 million in annualized revenues, respectively. The Adelanto ICE Center in California, freed from a four-year court-imposed occupancy restriction, also contributed to near-term growth. Management emphasized disciplined capital allocation, with the share buyback program reflecting confidence in the company’s intrinsic value. The updated 2025 guidance anticipates adjusted EBITDA between $465 million and $490 million, supported by stable occupancy trends and contract activations.

A backtest of a high-volume trading strategy showed a 166.71% return from 2022 to 2025, outperforming the benchmark by 137.53%. This underscores liquidity concentration in volatile markets as a driver for short-term gains, though risks from rapid price swings remain significant.