The GEO Group Reports $2.4 Billion Revenue for Fiscal Year 2024

The GEO Group, Inc. (GEO) reported consolidated revenues of $2.4 billion for the fiscal year ended December 31, 2024, a slight increase of $10.5 million (0.4%) compared to $2.4 billion in 2023. The company maintained an average company-wide facility occupancy rate of 87.2% in 2024, excluding 11,675 idle beds, compared to 85.8% in 2023, excluding 11,421 idle beds. GEO's U.S. Secure Services segment saw revenue increase by $86.1 million (5.7%) to $1.6 billion, primarily due to new transportation contracts and increased rates and occupancies, partially offset by the transition of operations at the Lawrenceville Correctional Center. Electronic Monitoring and Supervision Services revenue decreased by $93.1 million (21.8%) to $332.8 million, mainly due to lower average participant counts under the ISAP program.

Operating expenses increased by $30.3 million (1.7%) to $1.8 billion in 2024. The increase in U.S. Secure Services operating expenses of $46.4 million (4.0%) to $1.2 billion was primarily due to higher labor and medical costs, transportation services, and increased occupancies, partially offset by the Lawrenceville Correctional Center transition and a favorable adjustment for penalties and interest. Electronic Monitoring and Supervision Services operating expenses decreased by $24.0 million (13.0%) to $160.9 million due to lower variable costs. Reentry Services operating expenses decreased by $4.1 million (2.0%) to $205.7 million, and International Services operating expenses increased by $12.0 million (6.6%) to $192.1 million. Depreciation and amortization expense increased slightly to $126.2 million (5.2%) in 2024.

Significant changes in 2024 included the retirement of Brian Evans as Chief Executive Officer and the appointment of J. David Donahue as his successor. The company also announced a 15-year contract with ICE for the Delaney Hall Facility in Newark, New Jersey, and renewed contracts for several ICE processing centers. As of December 31, 2024, GEO was marketing 11,675 vacant beds across eleven idle facilities, with an estimated annual carrying cost of $33 million. The company achieved a median re-accreditation score of 100% from the American Correctional Association for its facilities. GEO also issued its sixth Human Rights and ESG report. The company had approximately 16,500 full-time employees as of December 31, 2024.

The company's financial condition was impacted by a high level of indebtedness, totaling approximately $1.7 billion as of December 31, 2024. GEO completed a senior notes offering of $1.275 billion and entered into a new credit agreement, using the proceeds to refinance existing indebtedness. The company also retired $229.9 million in 6.50% Exchangeable Senior Notes due 2026 through private exchange transactions. GEO's outlook anticipates growth opportunities related to increased immigration enforcement priorities, but acknowledges potential offsets from budgetary constraints and other factors. The company expects its 2025 annual effective tax rate to be in the range of 28% to 30%, exclusive of any discrete items. The company also notes several ongoing legal proceedings and challenges to state legislation.