GEO Group stock jumps on $200M ICE contract win in Texas

Geo Group Inc (NYSE:GEO) shares rose 4% in premarket trade Monday after the company announced a 10-year contract to operate a federal immigration processing center in Texas.

The City of Big Spring, Texas entered into an intergovernmental service agreement with U.S. Immigration and Customs Enforcement for the activation of the 2,329-bed Big Spring Complex. The facility comprises the 1,404-bed Flightline Facility and the 925-bed Cedar Hill Facility.

GEO will provide support services at the complex, including security, maintenance, food services, recreational amenities, medical care, and transportation services. The Big Spring Complex is expected to generate approximately $200 million in annual revenues for GEO in the first full year of operations.

George C. Zoley, GEO's Chairman, Chief Executive Officer and Founder, commented, "We expect that our Big Spring Complex in Texas will play an important role in helping meet the need for increased federal immigration processing center bedspace. We are proud of our 40-year public-private partnership with ICE, and we stand ready to continue to assist the federal government in meeting its immigration enforcement priorities."

The GEO Group operates 97 facilities totaling approximately 76,000 beds, including idle facilities and projects under development, across the United States, Australia, South Africa, and the United Kingdom.