Monday, June 02, 2025
The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 103 facilities totaling approximately 83,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Enter Negotiations for Extension. On Friday, it was announced the government intends to enter into negotiations with GEO’s BI subsidiary for a one year extension of the ISAP program, which is currently effective through July 31, 2025. We would view an extension of this program as a significant positive for GEO in both the near-term and longer term.
A Positive Future? Acknowledging Friday’s release is limited to extending the current contract for a year, the verbiage used by the government contracting agency highlights the moat GEO has built around the business, suggesting the Company should be in the catbird’s seat for a longer term renewal. For example, the government states, “Market research conducted by the Office of Acquisition Management revealed that there is only one responsible source because the current contractor is uniquely positioned to maintain existing operations of the program without transitioning active program participants between contractor solutions.”
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
