The GEO Group, Inc. reported a slight decline in revenue for the first quarter of 2025, generating $604.6 million compared to $605.7 million in the same period of 2024. The company's operating income also decreased to $60.98 million from $79.56 million year-over-year. Net income attributable to GEO Group fell to $19.56 million, or $0.14 per diluted share, down from $22.67 million, or $0.14 per diluted share, in the prior year. The decrease in profitability was attributed to increased operating expenses, which rose to $453.78 million from $441.68 million, driven by higher labor and medical costs, as well as additional staffing and training expenses.
In terms of operational metrics, GEO Group maintained an average facility occupancy rate of approximately 88% for the quarter, with 69,125 active beds, a slight decrease from 69,834 active beds in the previous year. The company reported a decrease in revenues from its Electronic Monitoring and Supervision Services segment, which fell by $9.1 million due to lower participant counts. Conversely, revenues from the U.S. Secure Services segment increased by $4.8 million, primarily due to higher occupancy rates and contract modifications.
Strategically, GEO Group has been active in expanding its service offerings and facilities. The company announced a contract with ICE for the activation of a federal immigration processing center at its North Lake Facility in Michigan and a 15-year contract for the Delaney Hall Facility in New Jersey. Additionally, the company is currently marketing 7,453 vacant beds across nine idle facilities, with a total carrying value of $184 million. The management anticipates that activating these facilities could generate significant incremental revenue.
Looking ahead, GEO Group's management expressed optimism about growth opportunities, particularly in response to federal immigration enforcement priorities. However, they acknowledged potential challenges, including budgetary constraints and the risk of contract terminations or modifications. The company plans to fund its capital needs through cash on hand, operational cash flow, and borrowings under its credit agreement, while also managing its debt obligations effectively. As of March 31, 2025, GEO Group's total debt stood at approximately $1.68 billion, with a significant portion refinanced through recent senior notes offerings.
About GEO GROUP INC
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