Major Private Detention Center Operators See Revenue Surge
One of the Two Leading Firms Announces Share Buyback
Reports have emerged that private detention centers and prisons in the United States are reaping significant financial gains as the Donald Trump administration intensifies immigration enforcement with the goal of deporting one million immigrants annually.
Immigration and Customs Enforcement detention facility operated by GEO Group in the United States. Photo by AFP Yonhap News
On August 6 (local time), AFP reported that GEO Group, one of the two largest private detention facility operators in the United States, posted second-quarter revenue of $636.2 million (880.2 billion won), a 4.8% increase compared to the same period last year.
In its earnings announcement, GEO Group stated that its net profit for the quarter reached $29.1 million (40.26 billion won), a significant turnaround from a net loss of $32.5 million (44.97 billion won) in the same period last year. The company also announced a $300 million (416 billion won) share buyback plan, expressing expectations for further growth driven by White House policies.
The company projected that revenue will increase further in 2026 due to the Immigration and Customs Enforcement (ICE) crackdown policy. GEO Group explained that four facilities currently undergoing opening procedures will reach full capacity next year, generating annual revenue of $240 million (330 billion won).
CoreCivic, the other major private prison operator in the United States, also reported in its earnings announcement that its second-quarter revenue more than doubled to $38.5 million (53.3 billion won), prompting the company to raise its performance targets.
Since taking office, President Trump has accelerated immigration enforcement with the goal of deporting one million immigrants annually. From the end of June last year until just before the start of Trump’s second term in January, the daily average number of arrests by ICE was around 250 to 300. However, within just a few weeks of Trump’s inauguration, this number more than tripled. In particular, after the White House set a daily arrest target of over 3,000 in May, ICE came under additional pressure, and by early June, the daily average number of arrests exceeded 1,000.
According to the Trump administration’s multi-year budget package approved by Congress last month, $45 billion (62 trillion won) has been allocated over four years for ICE detention funding. This is roughly three times the previous amount, and the Trump administration stated that, based on this, it would need to secure an additional 100,000 beds to meet its deportation targets.
During the earnings call, GEO Group Chairman George Zoley explained that six currently unused company facilities have a total of 5,900 beds. He added that if ICE were to utilize all of these beds, it would generate an additional $310 million (430 billion won) in annual revenue.
However, the company believes that the White House’s goal of deporting one million people per year will be difficult to achieve. The company cited practical limitations such as the finite number of beds owned by private operators and a shortage of ICE personnel.
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