BRENTWOOD, Tenn., Dec. 12, 2025 (GLOBE NEWSWIRE) -- CoreCivic, Inc. (NYSE: CXW) ("CoreCivic" or the "Company") announced today that CoreCivic's Board of Directors (the "Board") has appointed Daren Swenson, who currently serves as CoreCivic's Senior Vice President and Chief Corrections Officer, to Executive Vice President and Chief Corrections and Reentry Officer (CCRO), effective January 1, 2026, overseeing the operations for our corrections, detention, and reentry facilities. Damon T. Hininger, CoreCivic's ...

BRENTWOOD, Tenn., Dec. 02, 2025 (GLOBE NEWSWIRE) -- CoreCivic, Inc. (NYSE: CXW) ("CoreCivic" or the "Company") announced today that it has entered into a First Amendment to its Fourth Amended and Restated Credit Agreement to, among other things, increase the size of the "accordion" feature that provides for uncommitted incremental extensions of credit from $200 million to $300 million, and to exercise the full allotment by expanding the capacity under the Revolving Credit Facility from $275 million to $575 ...

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Core Points - CoreCivic's Board of Directors has authorized an increase in its share repurchase program, allowing for an additional $200 million in share buybacks, raising the total authorization from $500 million to $700 million [1] - Since the program's initiation in May 2022, CoreCivic has repurchased 21.5 million shares at a total cost of $322.1 million, averaging $14.98 per share, with $377.9 million remaining for repurchase as of November 7, 2025 [2] - The CEO of CoreCivic expressed confidence that the current share price does not reflect the company's progress and opportunities, emphasizing a commitment to enhancing long-term shareholder value through capital allocation strategies [3] - CoreCivic is a diversified government-solutions company, recognized as the largest owner and one of the largest operators of correctional and detention facilities in the U.S., providing various solutions to government partners [4]

Core Points - CoreCivic reported Q3 CY2025 revenue of $580.4 million, an 18.1% year-on-year increase, exceeding analyst estimates of $541.2 million by 7.3% [1][6] - Non-GAAP profit per share was $0.24, which was 7.7% below the consensus estimate of $0.26 [1][6] - The market reacted negatively to the earnings report, leading to a sharp decline in share price [3] Revenue and Profitability - Revenue growth was attributed to new federal contracts, particularly with Immigration and Customs Enforcement (ICE), and the reactivation of previously idle facilities [3][5] - Start-up costs for newly activated centers and legal delays impacted profitability, contributing to the shortfall in non-GAAP earnings [3][5] - Adjusted EBITDA was reported at $88.83 million, missing analyst expectations of $90.96 million, with a margin of 15.3% [6] Future Guidance - Management lowered full-year Adjusted EPS guidance to $1.03 at the midpoint, reflecting a 6.8% decrease [6] - EBITDA guidance for the full year is set at $357 million at the midpoint, below analyst estimates of $371.5 million [6] - Management anticipates significant earnings growth once stabilized occupancy is achieved in 2026, despite near-term margin pressure from start-up losses [4]

Financial Performance - Net income for Q3 2025 was $26.3 million, or $0.24 per diluted share, compared to $21.1 million, or $0.19 per diluted share in Q3 2024, reflecting a 24.0% increase in net income year-over-year [110]. - Total revenue for Q3 2025 was $580.4 million, an increase of $88.8 million, or 18.1%, from $491.6 million in Q3 2024 [115]. - Total management revenue for the nine months ended September 30, 2025, was $1,593.1 million, an increase of $132.3 million, or 9.1%, compared to $1,460.8 million in the same period of 2024 [116]. - CoreCivic Safety's total revenue increased by $85.8 million, or 18.7%, from $459.3 million in Q3 2024 to $545.1 million in Q3 2025 [136]. - CoreCivic Community's total revenue increased by $2.4 million, or 8.7%, from $28.2 million in Q3 2024 to $30.7 million in Q3 2025, and by $2.1 million, or 2.4%, from $88.4 million in the first nine months of 2024 to $90.5 million in 2025 [148]. - Net income for the nine months ended September 30, 2025, was $87,801, up from $63,503 for the same period in 2024, representing an increase of approximately 38% [185]. - Funds From Operations (FFO) for the nine months ended September 30, 2025, was $164,693, compared to $124,856 for the same period in 2024, indicating an increase of approximately 32% [189]. - Normalized Funds From Operations for the nine months ended September 30, 2025, was $166,367, up from $146,839 in 2024, reflecting an increase of approximately 13% [189]. Revenue and Occupancy - Management revenue increased by $88.2 million, or 18.1%, for Q3 2025, driven by a $45.3 million increase in revenue per compensated man-day, which rose by 8.7% [116]. - Average compensated occupancy for Q3 2025 was 76.7%, up from 75.2% in Q3 2024, indicating improved facility utilization [114]. - Average daily compensated population increased by 4,479, or 8.8%, to 55,236 for the three months ended September 30, 2025, compared to 50,757 for the same period in 2024 [117]. - Federal customers generated approximately 55% of total revenue for the three months ended September 30, 2025, increasing by $70.9 million, or 28.3%, compared to the same period in 2024 [118]. - Average compensated occupancy in the Safety and Community segments increased to 76.7% from 75.2% during the three months ended September 30, 2025, and to 76.8% from 74.9% during the nine months ended September 30, 2025 [117]. Expenses and Costs - Operating expenses totaled $449.6 million for the three months ended September 30, 2025, an increase of $78.8 million, or 21.2%, compared to $370.8 million for the same period in 2024 [122]. - Total expenses per compensated man-day increased to $86.22 during the three months ended September 30, 2025, from $77.02 during the same period in 2024 [127]. - Variable expenses per compensated man-day increased to $22.79 during the three months ended September 30, 2025, from $19.42 during the same period in 2024, representing a 17.4% increase [131]. - Operating expenses increased by $100.5 million, or 9.0%, during the nine months ended September 30, 2025, compared to the same period in 2024 [123]. - General and administrative expenses rose to $45.3 million in Q3 2025 from $41.2 million in Q3 2024, primarily due to increased corporate salaries and benefits [155]. Acquisitions and Investments - The acquisition of the Farmville Detention Center effective July 1, 2025, contributed to the increase in average daily compensated population [117]. - The acquisition of the Farmville Detention Center for $71.4 million is expected to result in total annual incremental revenue of approximately $40 million [145]. - The company completed the repurchase of 5.9 million shares at a total cost of $121.0 million during the nine months ended September 30, 2025 [169]. - The company approved capital expenditures of $97.5 million to $99.5 million for activating previously idled facilities [171]. Debt and Cash Management - As of September 30, 2025, the company had cash on hand of $56.6 million and $191.4 million available under its Revolving Credit Facility [173]. - The company generated $195.0 million in cash from operating activities for the nine months ended September 30, 2025, compared to $229.9 million for the same period in 2024 [177]. - The company reported a net cash flow used in investing activities of $166.8 million for the nine months ended September 30, 2025, primarily due to capital expenditures and the acquisition of the Farmville Detention Center [178]. - As of September 30, 2025, the company had $238.5 million of 4.75% senior unsecured notes and $500.0 million of 8.25% senior notes outstanding [175]. - The total weighted average effective interest rate for the company was 6.9% as of September 30, 2025 [175]. - The company has no debt maturities until October 2027, providing flexibility for future capital management [175]. Market and Operational Insights - The CoreCivic Safety segment accounted for 92.1% of total segment net operating income for Q3 2025, down from 94.3% in Q3 2024 [111]. - Operating margins were negatively impacted by start-up expenses and labor shortages, with a facility operating loss of $3.4 million during Q3 2025 [136]. - CoreCivic anticipates an increase in demand for correctional and detention facilities due to changes in immigration policy and funding levels from the federal government [139]. - The management contract with the state of Montana for inmate care is set to expire on July 31, 2026, with the potential for a total term of up to seven years, currently managing 362 inmates at the Saguaro facility and 239 at the Tallahatchie facility [147]. - The company is exposed to market risk related to interest rates, with a potential increase or decrease in interest expense of $0.4 million and $1.0 million for the three and nine months ended September 30, 2025, respectively, if rates changed by 100 basis points [195].

Financial Data and Key Metrics Changes - In Q3 2025, the company generated GAAP EPS of $0.24 per share and FFO per share of $0.48, with adjusted EPS increasing by 20% from $0.20 in Q3 2024 [21][22] - Adjusted EBITDA rose to $88.8 million, a 6.6% increase from $83.3 million in the prior year quarter [22][23] - The operating margin for safety and community facilities was 22.7%, down from 24.9% in the prior year quarter, but adjusted for startup losses, it was 24% [26] Business Line Data and Key Metrics Changes - Revenue from federal partners, primarily ICE and the U.S. Marshals Service, increased by 28% year-over-year, with ICE revenue up by $76.2 million or 54.6% [13] - Revenue from state partners increased by 3.6%, driven by new contracts with Montana and population increases in Georgia [13][14] - Total occupancy for safety and community segments was 76.7%, up 1.5 percentage points year-over-year [14] Market Data and Key Metrics Changes - Nationwide ICE detention populations reached historical highs of around 60,000, with a 37% increase in ICE populations in company facilities from the end of 2024 to Q3 2025 [8][9] - U.S. Marshals populations slightly declined to just over 6,300, but are expected to increase in 2026 due to anticipated enforcement activities [8][9] Company Strategy and Development Direction - The company is focused on activating idle facilities, with four new contracts expected to generate approximately $320 million in annual revenue once stabilized occupancy is reached [5][19] - The company plans to accelerate share repurchases, indicating a belief that current stock valuation does not reflect the cash flows of the business [11][33] - The company anticipates reaching a run rate EBITDA of at least $450 million once new facilities reach stabilized occupancy in 2026 [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future demand, citing ongoing conversations with state partners and the potential for additional contract awards [9][60] - The company noted that the pace of ICE admissions has remained stable, with expectations for increased enforcement activity [41] - Management acknowledged challenges related to startup activities for new contracts but emphasized the importance of these contracts for future growth [43][30] Other Important Information - The company has five idle facilities containing approximately 7,000 beds, with ongoing discussions about potential future activations [10][60] - The company plans to spend $60-$65 million on maintenance capital expenditures in 2025, unchanged from prior guidance [32] Q&A Session Summary Question: Thoughts on ICE detention pace and government shutdown impact - Management indicated that the pace of admissions and activity in facilities has remained stable, with some increase in transportation demands [39][40] Question: Guidance and updated occupancy projections - Updated guidance reflects startup activities and new contracts, resulting in some operating losses but viewed positively as it includes new contracts [43][44] Question: Share repurchase strategy and leverage goals - Management confirmed plans to be more aggressive with share repurchases, considering current stock price and expected cash flow growth [46][47] Question: Future activations and state demand - Management confirmed ongoing discussions with state partners for potential bed utilization beyond ICE contracts [60][61] Question: Staffing issues and wage trends - Management reported strong hiring experiences and favorable wage trends, with no significant concerns regarding staffing [56]

CoreCivic Financial Performance - CoreCivic reported third-quarter revenue growth of 18.1% year-over-year, reaching $580.4 million, which exceeded Wall Street expectations [2] - Adjusted earnings per share (EPS) were $0.24, falling short of analysts' estimates of $0.26, indicating profitability weakness despite strong revenue growth [2] - The company lowered its full-year adjusted EPS guidance to a midpoint of $1.03, representing a 6.8% decrease from previous projections, and also reduced full-year EBITDA guidance [2] Market Reaction - Following the earnings report, CoreCivic's shares fell 12.2% in the morning session, reflecting significant market reaction to the news [1][4] - The stock has shown volatility, with 11 moves greater than 5% over the past year, indicating that this news has notably impacted market perception [4] Year-to-Date Performance - CoreCivic's stock is down 24.4% since the beginning of the year, currently trading at $16.42 per share, which is 31.4% below its 52-week high of $23.94 from November 2024 [6] - An investment of $1,000 in CoreCivic shares five years ago would now be worth $2,737, highlighting long-term growth despite recent volatility [6]

Core Insights - CoreCivic, Inc. reported a total revenue increase of 18.1% year-over-year, reaching $580.4 million in Q3 2025, driven by strong demand from U.S. Immigration and Customs Enforcement (ICE) and the activation of idle facilities [7][4] - The company experienced a net income of $26.3 million, a 24.7% increase from the previous year, with diluted earnings per share rising to $0.24, up 26.3% [5][7] - CoreCivic's adjusted EBITDA for Q3 2025 was $88.8 million, reflecting a 6.6% increase compared to the same quarter in 2024 [7][11] Financial Performance - Total revenue for Q3 2025 was $580.4 million, up from $491.6 million in Q3 2024 [7] - Net income increased to $26.3 million, compared to $21.1 million in the prior year [5] - Diluted earnings per share rose to $0.24 from $0.19 year-over-year [5] - Adjusted diluted earnings per share also increased to $0.24, up from $0.20 [5] - Normalized funds from operations (FFO) per diluted share was $0.48, an 11.6% increase from the previous year [12] Operational Highlights - The average daily residential population served was 55,236 in Q3 2025, compared to 50,757 in Q3 2024, indicating a 8.9% increase [6][8] - Revenue from ICE, the largest government partner, surged by 54.6% to $215.9 million, driven by the reactivation of facilities and new contracts [10] - The company repurchased 1.9 million shares at a cost of $40 million during the third quarter, with a total of 5.9 million shares repurchased in 2025 [14][7] Business Development - CoreCivic activated five idle facilities in 2025, with four contracts awarded in Q3 expected to generate approximately $320 million in annual revenue once stabilized [4][10] - The acquisition of the Farmville Detention Center for $71.4 million is anticipated to add $40 million in annual revenue [17] - New contracts at the West Tennessee Detention Facility and California City Immigration Processing Center are expected to generate $30 million and $130 million in annual revenue, respectively, once fully activated [18][19] Financial Guidance - The company revised its full-year 2025 financial guidance, projecting net income between $107 million and $113 million, down from previous estimates [22] - Adjusted net income is now expected to be between $108 million and $114 million, reflecting updated occupancy projections and start-up expenses related to new contracts [22][24]

Financial Performance - Total revenue for Q3 2025 was $580.4 million, an increase of 18.1% compared to the prior year quarter[5] - Net income for Q3 2025 was $26.3 million, up 24.7% from the prior year quarter[5] - Adjusted EBITDA for Q3 2025 was $88.8 million, up 6.6% from $83.3 million in Q3 2024[10] - Revenue for the three months ended September 30, 2025, was $580,437 thousand, compared to $491,558 thousand for the same period in 2024, representing an increase of 18.1%[32] - Net income for the three months ended September 30, 2025, was $26,309 thousand, up from $21,096 thousand in the same period of 2024, reflecting a growth of 24.0%[32] - Adjusted net income for the nine months ended September 30, 2025, was $90,933 thousand, compared to $72,046 thousand for the same period in 2024, indicating a year-over-year increase of 26.0%[33] - Basic earnings per share for the three months ended September 30, 2025, was $0.25, compared to $0.19 for the same period in 2024, marking a 31.6% increase[32] - Funds From Operations (FFO) for Q3 2025 reached $51,519,000, up 9.1% from $47,122,000 in Q3 2024[35] - Normalized Funds From Operations (Normalized FFO) for Q3 2025 was $52,082,000, a 9.3% increase from $47,602,000 in Q3 2024[35] - EBITDA for Q3 2025 was $89,030,000, representing a 9.9% increase from $81,367,000 in Q3 2024[36] - Adjusted EBITDA for Q3 2025 was $88,832,000, up 6.1% from $83,294,000 in Q3 2024[36] Revenue Sources - Revenue from ICE, the largest government partner, was $215.9 million, reflecting a 54.6% increase from $139.7 million in Q3 2024[9] - New contracts at four facilities are expected to generate approximately $320 million of annual revenue once stabilized occupancy is achieved[4] - The acquisition of the Farmville Detention Center is expected to generate approximately $40.0 million in annual incremental revenue[15] Guidance and Projections - Revised financial guidance for full year 2025 includes net income of $107.0 million to $113.0 million, down from prior guidance of $116.4 million to $124.4 million[20] - The guidance for Funds From Operations for the year ending December 31, 2025 is projected between $207,326,000 and $214,326,000[37] - The guidance for Normalized Funds From Operations for the year ending December 31, 2025 is projected between $209,000,000 and $216,000,000[37] - The projected diluted EPS for 2025 is between $0.99 and $1.05[37] - The projected Adjusted Diluted EPS for 2025 is between $1.00 and $1.06[37] Operational Metrics - Average daily residential population increased to 55,236 in Q3 2025, a rise of 8.9% from 50,757 in Q3 2024[7] - The average occupancy rate in Q3 2025 was 76.7%, compared to 75.2% in Q3 2024[7] Capital Expenditures - The company expects to invest between $29.0 million and $31.0 million in maintenance capital expenditures on real estate assets, and between $31.0 million and $34.0 million for other assets and information technology in 2025[21] - Capital expenditures associated with activating previously idled facilities are projected to be approximately $97.5 million to $99.5 million, reflecting an increase due to requests from ICE related to new contract awards[21] Balance Sheet - Total assets as of September 30, 2025, amounted to $3,110,131 thousand, an increase from $2,931,891 thousand as of December 31, 2024[31] - The company reported total liabilities of $1,639,659 thousand as of September 30, 2025, compared to $1,438,540 thousand as of December 31, 2024[31] Company Background and Risks - The company has been a partner for government solutions for over 40 years, focusing on corrections and detention management, and residential reentry facilities[25] - Forward-looking statements indicate potential risks including changes in government policy and economic conditions that could impact future performance[26]