GEO Group Projects Lower 2025 Earnings, Revenue Guidance Hits Stock

The GEO Group, Inc. reported its fourth-quarter and full-year 2024 earnings, with a total revenue of $607.7 million for the quarter and $2.42 billion for the year. However, the company posted a net income of $15.5 million for the quarter, down from $25.2 million the previous year, and its adjusted earnings per share missed analyst expectations. Looking ahead, GEO projected revenues of approximately $2.5 billion for 2025, which is below analysts' expectations of $2.76 billion. The anticipated earnings per share of $0.74 to $0.88 also fell short of the consensus estimate of $1.68. The company's profitability was impacted by increased general and administrative costs due to a management reorganization and preparations for future growth projects. As a result, GEO Group's shares have declined approximately 7.9% since the beginning of the year, contrasting with broader market gains.