The GEO Group Inc. (NYSE:GEO), a leading provider of secure facilities and services, saw its stock surge over 5% in pre-market trading after reporting strong third-quarter results and issuing an optimistic outlook for the full year.

For the three months ended September 30, 2024, GEO reported a 5.12% increase in revenue to $603.1 million, driven by higher occupancy levels across its diversified services platform. Adjusted net income rose to $29.1 million, or $0.21 per diluted share, compared to $23.6 million, or $0.19 per diluted share, in the prior-year quarter.

The company's Adjusted EBITDA remained robust at $118.6 million, reflecting its ability to manage costs effectively despite inflationary pressures. GEO's strong performance can be attributed to its strategic focus on reducing debt, deleveraging its balance sheet, and pursuing disciplined capital allocation to enhance long-term shareholder value.

Looking ahead, GEO raised its full-year 2024 guidance, projecting Adjusted Net Income in the range of $0.80 to $0.84 per diluted share, with Adjusted EBITDA expected to be between $470 million and $480 million. This upbeat outlook reflects the company's confidence in its ability to capitalize on growth opportunities across its diversified services platform, including secure facilities, processing centers, community reentry centers, and electronic monitoring.

GEO's Executive Chairman, George C. Zoley, expressed optimism, stating, "We believe we have several potential sources of upside to our current quarterly run rate, with possible future growth opportunities across our diversified services platform." He also highlighted the company's focus on evaluating options to return capital to shareholders in the future.