CoreCivic Reports Third Quarter 2025 Financial Results

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]