On recent fourth-quarter earnings calls, security services companies highlighted strategic growth and operational efficiency as key themes that are shaping their approach. The earnings calls transcripts were provided by Bloomberg.
Strategic growth and acquisitions
Several companies highlighted their efforts to expand their market presence and capabilities through strategic acquisitions and partnerships.
Scott Staples, CEO of First Advantage Corp., said the company’s acquisition of another firm was aimed at enhancing its market position, expanding capabilities and accelerating strategic progress.
CoreCivic Inc. has been pursuing new contracts and expanding its existing partnerships to drive growth. Company leaders said this approach had contributed to higher occupancy rates and strengthened CoreCivic’s relationships with state governments.
GEO Group Inc. emphasized its efforts to expand detention capacity to meet the federal government’s increasing demands. The company plans to invest in renovating existing facilities, ramping up production of GPS tracking devices and expanding its secure transportation fleet.
Prosegur Compañía de Seguridad, S.A.’s strategy of geographic and product diversification played a crucial role for the company in 2024. The company achieved balanced growth across all geographic regions, with each region growing by over 7%. Prosegur leaders said this diversification helped mitigate the impact of challenges in specific regions, such as economic turmoil in Argentina. Company leaders said Prosegur’s focus on new products and services, such as its transformation products in the cash business, contributed to overall growth.
Operational efficiency
CoreCivic leaders said the company improved facility performance. Patrick Swindle, president and COO, said, “Our staffing has improved to nearly pre-pandemic levels, and that has allowed us to reduce elevated spending on temporary staffing expenses.” Swindle said CoreCivic is also preparing for future growth by making capital improvements, conducting preparatory maintenance and ensuring labor force readiness.
First Advantage leaders said the company integrated AI capabilities into its workflow to increase efficiency and provide greater customer service. Staples said, “We continue to drive innovation to maintain our competitive advantage [and] ensure we are offering the best solutions to our customers.” Staples said the company maintained high retention rates.
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GEO Group leaders said the company is dedicated to achieving operational excellence and compliance across all of its service lines. The company successfully underwent numerous audits, government reviews, third-party accreditations and Prison Rape Elimination Act certifications in 2024.
Prosegur leaders said they are prioritizing innovation to achieve diversified and sustainable growth. The company implemented new technologies and processes in its security and alarms businesses with the goal of enhancing efficiency and customer value.
The takeaway
The fourth-quarter earnings calls of security services companies focused on strategic growth and acquisitions, and on operational efficiency. These factors are driving the companies’ strategies and positioning them for the future.
