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The services will include exclusive use of the Facility by ICE, security, maintenance, and food services, as well as access to recreational amenities, medical care, and legal counsel.
Government service provider The GEO Group, Inc. (GEO) shares rose over 1% on Thursday morning after the company announced a contract with U.S. Immigration and Customs Enforcement (ICE) to activate a federal immigration processing center immediately.
The center is at a GEO-owned, 1,800-bed North Lake Facility in Baldwin, Michigan.
The company expects the multi-year contract to generate more than $70 million in annualized revenue in the first full year of operations, with margins consistent with those of GEO’s company-owned Secure Services facilities.
The services will include exclusive use of the facility by ICE, along with security, maintenance, and food services, as well as access to recreational amenities, medical care, and legal counsel.
Late last month, ICE awarded the firm a 15-year, fixed-price contract to provide support services for establishing a federal immigration processing center at the company-owned, 1,000-bed Delaney Hall Facility in Newark, New Jersey.
The company expects the contract to generate over $60 million in annualized revenues in its first full year of operations.
GEO also said it expects the 15-year value of the contract with standard cost of living adjustments to be approximately $1 billion.
GEO shares recently bounced off long-term support near the $23 mark and are on their way to all-time highs of about $36.
Earlier this month, Noble Capital upgraded the stock to ‘Outperform’ from ‘Market Perform’ with a $32 price target.
According to TheFly, the firm sees a "substantial opportunity" to fill existing beds under current contracts. It added that opening currently idle facilities, new facilities, and expansion of the ISAP program offer additional upside potential.
Meanwhile, on Stocktwits, retail sentiment continued to trend in the ‘neutral’ territory (51/100).
One Stocktwits user expects the shares to hit the $50 mark this year.
GEO shares are down 0.42% in 2025 but have doubled in the past 12 months.
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