Geo Group Inks Five-Year Deal With Immigration And Customs Enforcement, Sees $25M Revenue Opportunity

Geo Group Inc GEO said on Tuesday that its unit GEO Transport got a five-year contract to provide air operations support services on behalf of U.S. Immigration and Customs Enforcement.

GEO Transport will be the subcontractor of CSI Aviation, which has been selected as the prime contractor.

“The award of this new five-year contract to provide air operations support services on behalf of ICE is a testament to GTI’s service delivery and safety record since its founding in 2007,” George C. Zoley, GEO’s Executive Chairman, said. 

GEO Transport initially supported Immigration and Customs Enforcement through CSI Aviation under a nine-month emergency contract in July 2023.

The new five-year contract with ICE is anticipated to yield around $25 million in annual revenue for Geo Group.

“We believe that U.S. Immigration and Customs Enforcement (“ICE”) continues to face budgetary pressures, and the outcome and timing of ongoing federal government appropriations discussions in the United States Congress remain uncertain,” Geo Group said in a press release on February 15.

For the full year 2024, Geo Group expects net income to be in a range of $110 million to $125 million on annual revenues of approximately $2.4 billion (consensus $2.435 billion).

The company expects full-year 2024 adjusted EBITDA to be between $485 million and $515 million.

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Price Action: GEO shares are trading higher by 0.42% to $11.95 on the last check Tuesday.