Geo Group Inc's stock plummeted 13.96% during intraday trading on Thursday, driven by disappointing forward guidance, mixed fourth-quarter results, and a significant leadership transition announced by the company.
The secure facilities service provider issued guidance for the first quarter of 2026 that fell short of analyst expectations, forecasting EPS in the range of $0.17 to $0.19, below the FactSet consensus estimate of $0.24. For the full year 2026, the company expects EPS between $0.99 and $1.07, significantly lower than the FactSet estimate of $1.27.
Additionally, the company reported mixed results for the fourth quarter of 2025. While revenue of $707.7 million beat analyst estimates of $667.3 million, adjusted net income of $34.8 million missed the consensus estimate of $38.26 million. The company also announced a corporate reorganization, with CEO J. David Donahue set to retire on February 28, 2026. Founder and Executive Chairman George C. Zoley will return as Chairman and CEO effective March 1, 2026.