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]

Core Insights - The article emphasizes the importance of understanding market dynamics and the potential impact of macroeconomic factors on investment decisions [2] Group 1: Market Analysis - The current market environment is characterized by volatility, influenced by geopolitical tensions and economic indicators [2] - Analysts suggest that investors should closely monitor interest rate changes and inflation trends as they could significantly affect market performance [2] Group 2: Company Performance - Recent earnings reports from key companies indicate mixed results, with some sectors showing resilience while others struggle [2] - Companies that have adapted to changing consumer preferences and technological advancements are likely to outperform their peers [2]

Core View - CoreCivic, Inc. (NYSE: CXW) has transitioned from a distressed high-yield credit to a crossover quality ticker, driven by strong demands from ICE and contract wins [1] Financial Performance - The company is generating strong free cash flow and has a robust balance sheet [1]

Core Points - CoreCivic, Inc. (NYSE:CXW) is recognized as a promising small-cap stock with significant upside potential [1] - The company is set to announce its fiscal Q3 2025 results on November 5, 2023, after market close [1] - Analyst Joe Gomes from Noble Financial maintains a bullish outlook on CoreCivic, assigning a price target of $28 [2] Contract and Revenue Details - CoreCivic has secured a new contract under an Intergovernmental Services Agreement (IGSA) with the US Immigration and Customs Enforcement (ICE) and the Oklahoma Department of Corrections (OKDOC) [3] - The contract allows the company to resume operations at the 2,160-bed Diamondback Correctional Facility, which has been inactive since 2010, with a commencement date of September 30, 2023, for a term of five years [4] - The agreement includes a "fixed monthly payment plus an incremental per diem payment based on detainee populations," with expected total annual revenue of around $100 million once the facility is fully operational [5] - Detainee intake is anticipated to begin in fiscal Q1 2026, with full operational capacity expected by fiscal Q2 2026 [5] Company Overview - CoreCivic, Inc. operates as a government solutions company focused on the management and development of prisons and correctional facilities, with operations divided into Safety, Community, and Properties segments [6]

Core观点 - Recent market sell-off has created a significant investment opportunity in CoreCivic (NYSE: CXW), with the stock price dropping from $22.5 to $17.5, a decline of 22%, resulting in a loss of over $500 million in market capitalization [1] 分组1 - The stock price of CoreCivic has decreased significantly, presenting a potential buying opportunity for value investors [1] - The decline in stock price reflects broader market trends, which may not necessarily indicate the company's underlying performance [1] - The focus on value investing emphasizes the importance of analyzing business operations and financials to estimate fair value rather than relying solely on traditional metrics like WACC [1]

CoreCivic (NYSE:CXW) Conference Call Summary Company Overview - CoreCivic is a diversified government solutions company focused on corrections and detention management, addressing recidivism, and providing government real estate solutions [1][2] - The company was established in 1983 and has approximately $2.9 billion in total assets, with $2.3 billion in real estate [2] Financial Performance - Projected revenue for 2024 is around $2 billion, with adjusted EBITDA of approximately $331 million [2] - Revenue breakdown: 51% from federal contracts (30% from ICE), 20% from U.S. Marshals Service, 41% from state customers, and 8% from local and other customers [2] - Market capitalization is about $2 billion [3] Operational Segments - CoreCivic operates in three segments: 1. **Safety Segment**: 44 facilities with about 67,000 beds, contributing 92% of net operating income (NOI) [3][4] 2. **Community Segment**: 21 residential reentry facilities (halfway houses) with about 4,000 beds, making up 5% of NOI [4] 3. **Property Segment**: Five facilities leased to state agencies with about 7,800 beds, contributing 3% of NOI [4] Industry Insights - Private prisons account for less than 8% of the U.S. prison population, with CoreCivic being the largest owner of correctional and detention facilities [4] - CoreCivic manages 27% of total ICE populations and 13% of U.S. Marshals populations [5] Growth Opportunities - The company has about 9,000 beds available for reactivation to meet ICE's needs, with potential revenue generation based on a conservative estimate of $28.02 per bed [7][8] - The focus on interior enforcement by ICE is expected to create additional demand for CoreCivic's facilities [10] Recent Developments - CoreCivic activated five previously idle facilities, adding approximately 8,800 beds, which is expected to generate $500 million in revenue [14] - The company has a 97% contract retention rate over the past five years [14] Financial Strategy - The company has repaid $1.3 billion of debt since June 2020, reducing leverage from around four times to 2.3 times [15] - CoreCivic has $347 million in liquidity and plans to prioritize share repurchases over acquisitions due to limited opportunities [15][16] Acquisition Insights - The recent acquisition of the Farmville facility is expected to generate about $40 million in annual revenue and was completed seamlessly [27][29] - The company is targeting a return on investment of 13% to 15% for acquisitions, with the Farmville acquisition exceeding this target [28] Management Transition - A CEO succession plan is in place, with Patrick Swindle set to become CEO on January 1, 2026, following the current CEO's transition [17][18] Conclusion - CoreCivic is positioned for growth with strong financials, a solid operational strategy, and a focus on meeting government demand for detention services, while also navigating challenges such as staffing and government funding [19][25]

Core Points - CoreCivic, Inc. will release its 2025 third quarter financial results after market close on November 5, 2025 [1] - A live conference call will take place on November 6, 2025, at 1:30 p.m. central time [1] - Participants can register in advance to join the call via telephone [2] - An audio-only webcast of the conference call will be accessible on CoreCivic's website, with a replay available for seven days [3] Company Overview - CoreCivic is a diversified government-solutions company focused on addressing government challenges in a flexible and cost-effective manner [4] - The company provides a range of solutions including corrections and detention management, alternatives to incarceration, and government real estate solutions [4] - CoreCivic is the largest owner and one of the largest operators of partnership correctional, detention, and residential reentry facilities in the United States [4] - The company has over 40 years of experience as a reliable partner for government entities [4]

Core Points - CoreCivic has been awarded a new contract under an Intergovernmental Services Agreement with the Oklahoma Department of Corrections and U.S. Immigration and Customs Enforcement to reactivate the Diamondback Correctional Facility, which has been idle since 2010 [1][2] - The contract starts on September 30, 2025, for a five-year term, with potential extensions, and is expected to generate approximately $100 million in annual revenue once fully operational [2] - The facility is anticipated to begin receiving detainees in the first quarter of 2026, with full activation expected by the second quarter of 2026 [2] - CoreCivic plans to invest an additional $13 million for renovations requested by ICE to ensure a seamless reactivation of the facility [3] - The company has signed new contracts for a total of 6,353 beds across four facilities, which were all idle at the beginning of the year, projecting approximately $325 million in annual revenue once fully activated [3] Company Overview - CoreCivic is a diversified government-solutions company that provides a range of services including corrections and detention management, alternatives to incarceration, and government real estate solutions [4] - The company is the largest owner of partnership correctional, detention, and residential reentry facilities in the U.S. and has over 40 years of experience as a government partner [4]

Summary of CoreCivic Investor Conference Company Overview - **Company Name**: CoreCivic - **Ticker Symbol**: CXW - **Founded**: 1983 - **Total Assets**: Approximately $2.9 billion - **Real Estate Assets**: Approximately $2.3 billion - **2024 Revenue**: Approximately $2 billion - **Adjusted EBITDA**: $330.8 million - **Market Capitalization**: Approximately $2.2 billion - **Facilities**: 70 correctional, detention, and reentry facilities in the U.S. with a total of 79,202 beds - **Revenue Sources**: 51% from federal government, 41% from state governments, and 8% from local governments and others [2][3][4] Business Segments 1. **Safety Segment**: - Largest segment with 44 facilities and 67,289 beds - Contributes approximately 92% of net operating income (NOI) [4] 2. **Community Segment**: - 21 residential reentry facilities (halfway houses) with 4,159 beds - Contributes about 5% of NOI [5] 3. **Property Segment**: - 5 facilities leased to state government agencies with 7,754 beds - Contributes about 3% of NOI [5] Market Position - CoreCivic is the largest owner of private correctional and detention facilities, managing 57% of all owned beds and 41% of privately managed beds [6] - The company manages 27% of total ICE detention populations and 13% of U.S. Marshals populations [6][7] Recent Developments - **COVID-19 Impact**: Occupancy rates dropped during the pandemic, with a recovery to 76.8% by Q2 2023 [8] - **ICE Detention Capacity**: The One Big Beautiful Bill Act approved $45 billion for ICE, aiming to increase detention beds from 50,000 to 100,000. CoreCivic currently has 58,000 to 60,000 beds available [10][11] - **Idle Facilities**: CoreCivic has 13,419 beds in idle facilities that can be activated to meet ICE's growing demands [11][15] Financial Performance - **EBITDA Potential**: By activating idle facilities, CoreCivic could generate an additional $200 million to $225 million in EBITDA [17] - **Contract Renewal Rate**: 97% over the past five years, indicating strong customer retention [18] - **Debt Management**: Since August 2020, CoreCivic has repaid $1.3 billion in debt, maintaining a leverage ratio of 2.3 times [19][20] - **Share Repurchase Program**: $500 million authorization with $237.9 million remaining as of June 30, 2025 [21] Industry Dynamics - The company is positioned to benefit from a shift towards interior enforcement by ICE, as border encounters decrease [22][23] - Concerns about alternative detention facilities (e.g., Guantanamo Bay) are viewed as less viable due to higher costs and operational challenges compared to CoreCivic's existing facilities [24][25] Conclusion - CoreCivic presents a compelling investment opportunity with strong government contracts, a solid financial position, and growth potential in the detention market as federal needs increase [27]