The GEO Group (GEO) investor relations material

Executive summary

• Q2 2026 revenues rose 15% year-over-year to $732.1 million, with net income up 63% to $47.5 million and adjusted EBITDA up 20% to $142.0 million, driven by new and expanded contracts, especially with ICE, and strong operational performance across business units.

• First six months 2026 revenues increased 16% year-over-year to $1.44 billion, with net income up 76% to $85.8 million and adjusted EBITDA up 25% to $273.4 million.

• Major new five-year ICE contracts for Big Horn (CO) and Rivers (NC) facilities are expected to add $165 million in annual revenue once fully activated in 2027.

• The company maintained a 91% average occupancy rate for the first half of 2026, with strong performance across all segments.

• Share repurchases totaled 10.1 million shares for $177 million since August 2025, with $323 million remaining under the $500 million authorization.

Financial highlights

• Q2 2026 revenues were $732.1 million, up from $636.2 million in Q2 2025; net income was $47.5 million ($0.36 per diluted share), up from $29.1 million ($0.21); adjusted EBITDA was $142.0 million, up from $118.6 million.

• Q2 2026 operating income was $101.7 million, up from $72.0 million in Q2 2025; adjusted net income per diluted share was $0.37, up from $0.22.

• Six-month revenue rose to $1.44 billion from $1.24 billion year-over-year, a 15.8% increase.

• Cash and equivalents at June 30, 2026, were $55 million; total net debt at $1.5 billion; available liquidity of $300 million.

• Q2 2026 market capitalization was $3.91 billion, with a share price of $29.55.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $2.95–$3.05 billion; net income guidance increased to $168–$175 million ($1.27–$1.32 per diluted share); adjusted EBITDA guidance increased to $550–$560 million.

• Q3 2026 net income expected at $45–$48 million, Q4 at $37–$41 million; adjusted EBITDA for Q3 and Q4 projected at $140–$145 million and $137–$142 million, respectively.

• Guidance excludes contributions from new Big Horn and Rivers contracts, which are expected to contribute in 2027.

• FY26 capital expenditures expected at $135–$145 million.

• Idle facilities, if activated, could add up to $264 million in annualized revenue and $0.25–$0.30 EPS.