GEO Group And CoreCivic Stocks Are Getting Beaten Up Today – Why Such A Selloff?
Synopsis
Immigration and Customs Enforcement reportedly plans to shrink its network of more than 200 detention facilities, according to a Bloomberg News report.
- If implemented, this change would transition from a mix of local jails and privately operated prisons to a centralized model featuring larger facilities, as per the Bloomberg report.
- A reduction in ICE's network may significantly impact a key revenue source for GEO Group and CoreCivic, who collectively hold about 58% of individuals detained by ICE.
- In 2025, GEO entered into new contracts to house ICE detainees at four facilities totaling approximately 6,000 beds.
Shares of GEO Group and CoreCivic fell on Friday on report that Immigration and Customs Enforcement (ICE) is planning to shrink down its network of privately owned detention facilities.
Immigration and Customs Enforcement reportedly intends to reduce its network of over 200 detention centers—primarily run by private companies—to only 34 government-owned locations, a change that would impact established private prison corporations such as GEO Group and CoreCivic Inc.
If implemented, this change would transition from a mix of local jails and privately operated prisons to a centralized model featuring larger facilities—mainly industrial warehouses—owned by the Department of Homeland Security, according to a report from Bloomberg News, citing local officials briefed on the plan.
Hit On GEO Group And CoreCivic
A reduction in ICE's network may significantly impact a key revenue source for GEO Group and CoreCivic, who collectively hold about 58% of individuals detained by ICE, as per the report that cited company disclosures.
Contracts from ICE account for nearly half of GEO’s projected revenue of $2.9 billion to $3.1 billion for 2026. For CoreCivic, the revenues from ICE accounted for 40% of its entire fourth quarter revenue.
In December 2025, GEO Group was awarded a new two-year contract by ICE for the provision of Skip Tracing services. In 2025, GEO entered into new contracts to house ICE detainees at four facilities totaling approximately 6,000 beds, increasing ICE capacity from approximately 20,000 beds to approximately 26,000 beds.
ICE will now rely primarily on government-owned facilities but private companies will maintain a role, which may include providing services such as medical care and security, Bloomberg said.
How Did Stocktwits Users React?
Retail sentiment around GEO and CXW trended in ‘bullish’ territory.
Shares in GEO and CXW have fallen 52% and 12%, respectively.
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