GEO Lifts 2026 Profit Outlook After Adelanto Sale

The Tip Desk · November 7, 2026 · 4 min read

Third-quarter revenue reached a record $761.1 million as the company sold the Adelanto Complex for $950 million and raised full-year adjusted net income guidance to $185 million–$190 million.

The GEO Group (GEO), a provider of contracted support services for secure facilities, processing centers, and reentry centers, reported third-quarter 2026 revenue of $761.1 million, up 12% from $682.3 million a year earlier, and said the quarter marked the highest quarterly revenues and adjusted EBITDA in the company’s history.

Adjusted EBITDA rose 21% to $145.3 million. Adjusted net income increased 48% to $51.8 million, or $0.39 a share. GAAP net income attributable to GEO Operations was $49.2 million, or $0.37 a share, compared with $173.9 million, or $1.24 a share, a year earlier, when the year-ago period included a gain on asset divestitures. Third-quarter results reflected $3.5 million, pre-tax, in combined non-cash contingent liability and litigation and settlement costs, start-up expenses, transaction fees, employee restructuring expenses, and close-out expenses.

Operating income was $102.4 million, versus $40.7 million in the year-ago quarter, when a $37.6 million contingent litigation reserve was recorded.

Chairman, Chief Executive Officer and Founder George C. Zoley said better-than-expected 2026 performance had been driven by revenue growth from new or expanded contracts entered into throughout 2025, and that the company had entered into new or expanded contracts in 2026 with an overall value of approximately $500 million in incremental annual revenues.

The company completed the sale of the Adelanto Complex in California to the United States and its assigns through the Department of Homeland Security for an aggregate gross price of $950 million, with net proceeds of approximately $705 million after taxes and transaction costs. It said it expects to continue providing support services under an existing ICE contract with a full term through December 19, 2034. On October 15, GEO used sale proceeds to redeem $650 million of 8.625% Senior Secured Notes due 2029. Outstanding corporate debt then totaled $625 million of 10.250% Senior Unsecured Notes due 2031. Available liquidity was approximately $600 million, including cash on hand and revolving-credit availability.

The company also disclosed new ICE-related contracts. A five-year support-services contract effective July 9, 2026, covers the 1,188-bed Big Horn Facility in Hudson, Colorado, expected to generate about $85 million in annual revenues in the first full year. A five-year contract effective August 1, 2026, covers the 1,320-bed Rivers Facility in Winton, North Carolina, expected to generate about $80 million in annual revenues in the first full year. The City of Big Spring, Texas, entered a 10-year intergovernmental service agreement with ICE effective November 1, 2026, for the 2,329-bed Big Spring Complex, which GEO said is expected to generate about $200 million in annual revenues in the first full year. A new 10-year management contract effective October 28, 2026, covers the 1,635-bed Northwest ICE Processing Center in Tacoma, Washington, expected to generate about $140 million in annual revenues and continue through October 27, 2036. Under the three activation contracts, ICE will reimburse capital expenditures to reactivate the four facilities and fund start-up expenses. GEO said activation of Big Horn and Rivers is expected by the end of 2026, with normalized operations in early 2027, and activation of Big Spring by the end of the first quarter of 2027, with normalized operations in the second quarter of 2027.

The company said it remains engaged in an active process for the potential sale of multiple other company-owned facilities to ICE, with no definitive agreement or precise timeline for additional closings.

GEO narrowed full-year 2026 revenue guidance to $2.975 billion–$3.025 billion, from $2.95 billion–$3.05 billion given after the second quarter, raising the low end and lowering the high end while keeping the midpoint at $3.0 billion. It increased full-year Adjusted EBITDA guidance to $568 million–$573 million, from $550 million–$560 million. Full-year Adjusted Net Income guidance was raised to $185 million–$190 million, or $1.40–$1.44 a share, on annual revenues of $2.975 billion–$3.025 billion and an effective tax rate of approximately 28 percent. Full-year Net Income Attributable to GEO Operations guidance was raised to $726.3 million–$730.5 million, including the gain on sale of the Adelanto Complex in the fourth quarter. Fourth-quarter 2026 Adjusted Net Income guidance was raised to $46 million–$51 million, or $0.35–$0.39 a share, on quarterly revenues of $777 million–$827 million, and fourth-quarter Adjusted EBITDA guidance to $149 million–$154 million. The company expects total unreimbursed capital expenditures for the full year 2026 to be between $140 million and $150 million.

On October 5, the board approved a $750 million increase to the share-repurchase program, from $500 million to $1.25 billion, effective through December 31, 2029. As of November 5, GEO had repurchased approximately 10.1 million shares for about $177 million, leaving about $1.07 billion of authorization available and an outstanding share count of approximately 132 million. Zoley said share repurchases are a paramount capital allocation priority.