Financial Performance - The company reported a significant increase in revenue, achieving $1.2 billion for the fiscal year, representing a 15% year-over-year growth[12] - The company reported a 12% increase in operating income, totaling $300 million, due to improved efficiency and cost management[12] - The company anticipates a 10% growth in revenue for the next fiscal year, driven by new contracts and facility expansions[12] Operational Capacity and Expansion - User data showed a 20% increase in the number of inmates served across facilities, reaching a total of 30,000 individuals[12] - The company successfully activated three idle facilities, increasing operational capacity by 15% to meet growing demand[12] - Investment in new technology for electronic monitoring products increased by 25%, with plans to launch two new products in Q3 2024[12] Government Dependency and Risks - Government contracts accounted for 80% of total revenue, highlighting the dependency on public sector funding[12] - The company is dependent on government appropriations, and budgetary challenges or government shutdowns could adversely affect financial results[21] - The company relies on a limited number of governmental customers for a significant portion of its revenues, increasing vulnerability to changes in government contracts[22] Challenges and Outlook - The company is facing challenges with rising labor costs, which increased by 8% over the past year, impacting profit margins[12] - Future outlook remains cautious due to potential changes in government regulations affecting the privatization of correctional services[12] - The company anticipates challenges in securing new contracts for correctional and detention facilities due to factors outside its control, which may affect future growth[21] Competition and Market Position - A strategic acquisition of a smaller competitor was completed, expected to enhance market share by 5%[12] - The company faces competition that may adversely affect profitability and market position[21] Financial Risks - The company’s indebtedness could limit financial flexibility and affect its ability to meet obligations under debt securities[22] - The company may incur significant start-up costs on new contracts before receiving related revenues, impacting financial condition[21] - The company faces significant risks related to government policy changes affecting the utilization of private sector correctional and detention services, which could impact contract renewals and operational performance[17] - Fluctuations in occupancy levels are a concern, as a decrease could negatively impact the company's business[21] - The company is subject to risks associated with the privatization of correctional facilities, which could result in negative publicity and loss of contracts[21] - The company is implementing a new enterprise resource planning system, which may present operational challenges[22]

Financial Data and Key Metrics Changes - In Q4 2025, the company generated GAAP EPS of $0.26 and FFO per share of $0.51, with Adjusted EPS increasing by 69% to $0.27 compared to Q4 2024 [16][17] - Adjusted EBITDA rose by 25% to $92.5 million from $74.2 million in the prior year quarter [16][17] - The average daily population across all facilities managed was 56,380 individuals, up from 50,202 in the year-ago quarter [12][13] Business Line Data and Key Metrics Changes - Revenue from federal partners increased by 49% in Q4 2025 compared to the prior year, with ICE revenue more than doubling to $124.4 million [10][17] - Revenue from state partners grew by 5%, driven by new contracts in Montana and population increases in Georgia and Colorado [11][17] - Total occupancy for Safety and Community segments was 78.1%, up 2.6 points year-over-year [11] Market Data and Key Metrics Changes - Nationwide ICE detention populations reached historical highs of around 69,900 individuals, an increase of nearly 10,000 from the end of Q3 2025 [7] - The average daily Marshals population declined by 1,235 individuals from Q4 2024, partially offsetting the increase from ICE [8] Company Strategy and Development Direction - The company plans to reach stabilized occupancy in previously idle facilities by mid-2026, expecting an annual revenue run rate of approximately $2.5 billion and an EBITDA run rate of about $450 million [6][24] - The company is actively exploring additional opportunities at the state level and has engaged in discussions with several states for additional bed capacity [9][10] - The company emphasizes maintaining a conservative leverage approach while ensuring liquidity for strategic investments and share repurchases [21][76] Management's Comments on Operating Environment and Future Outlook - Management noted that the current demand for ICE detention beds is expected to continue growing, with historical funding levels for border security secured through September 2029 [25] - The company remains optimistic about the potential for activating additional idle facilities as demand increases [25][26] - Management expressed confidence in their ability to meet government partners' needs and manage additional populations effectively [14][40] Other Important Information - The company repurchased 5.3 million shares in Q4 2025, totaling 11.2 million shares for the year, representing 10.2% of outstanding shares at the beginning of the year [22] - The company has $300.5 million available under its Board authorization for share repurchases, with a cumulative authorization of up to $700 million [23] Q&A Session Summary Question: Were there no new reactivations in Q4 due to the government shutdown? - Management clarified that no new contracts were entered into in Q4, attributing the lack of new awards to the ebb and flow of demand rather than a lack of potential demand [33][34] Question: What is the expectation for margins as facilities are activated? - Management indicated that margins are expected to improve as facilities reach stabilized occupancy, with current margins around 24% excluding newly activated facilities [39] Question: How is the current contracting environment with ICE and DHS? - Management stated that they are in constant dialogue with ICE and DHS, assessing needs and opportunities to support their mission [46][49] Question: What is the potential upside if ICE contracts for all available beds? - Management estimated that filling 13,000 beds could lead to approximately $593 million in incremental revenue and $136 million in incremental EBITDA [92] Question: Is liquidity sufficient to support growth initiatives? - Management confirmed that they have ample liquidity, with over $300 million available on their revolving credit facility, allowing them to execute their strategy without constraints [74][75]

Financial Data and Key Metrics Changes - In Q4 2025, the company generated GAAP EPS of $0.26 and FFO per share of $0.51, with adjusted EPS increasing by 69% to $0.27 compared to Q4 2024 [16][17] - Adjusted EBITDA rose by 25% to $92.5 million from $74.2 million in the same quarter last year [16][17] - The average daily population across all facilities managed was 56,380 individuals, up from 50,202 in the year-ago quarter, reflecting increased demand for services [12][13] Business Line Data and Key Metrics Changes - Revenue from federal partners increased by 49% in Q4 2025 compared to the prior year, with ICE revenue more than doubling to $124.4 million [10][17] - Revenue from state partners grew by 5%, driven by new contracts in Montana and population increases in Georgia and Colorado [11][17] - Total occupancy for safety and community segments was 78.1%, up 2.6 points year-over-year [12] Market Data and Key Metrics Changes - Nationwide ICE detention populations reached historical highs of around 69,900 individuals, an increase of nearly 10,000 from the end of Q3 2025 [7] - The company managed approximately 23% of total ICE populations as of December 31, 2025, compared to 25% at year-end 2024 [17] Company Strategy and Development Direction - The company aims to stabilize occupancy in previously idle facilities by mid-2026, expecting an annual revenue run rate of approximately $2.5 billion and an EBITDA run rate of around $450 million [6][24] - The company is actively exploring additional opportunities at the state level and has engaged in discussions with several states for additional bed capacity [9][10] - The company plans to prioritize cash flow and share repurchases while maintaining balance sheet flexibility for strategic investments [14][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to meet future demand with substantial capacity available, including 5 idle facilities with approximately 7,000 beds [8][10] - The company remains optimistic about the future, citing historic funding levels for border security and immigration detention through 2029 [25] - Management acknowledged the slower-than-expected pace of ICE detentions but noted significant increases in operational capacity since the previous administration [94] Other Important Information - The company amended its bank credit facility to increase the revolving credit capacity from $275 million to $575 million, enhancing balance sheet flexibility [21] - The company repurchased 5.3 million shares in Q4 2025, totaling 11.2 million shares for the year, representing 10.2% of outstanding shares at the beginning of the year [22][23] Q&A Session Summary Question: Were there any new reactivations in Q4? - Management indicated that no new contracts were entered into in Q4, attributing this to the ebb and flow of demand rather than a lack of potential demand [33][34] Question: What is the expectation for safety margins as facilities are activated? - Management confirmed that margins are expected to improve as facilities reach stabilized occupancy, with current margins around 24% excluding newly activated facilities [39] Question: How is the current contracting environment with ICE? - Management stated that they are in constant dialogue with ICE and are well-positioned to support their needs, emphasizing that recent enforcement actions should not be interpreted as a national mandate change [48][50] Question: What are the intentions regarding share buybacks? - Management confirmed plans to continue share repurchases, especially given the current stock price being below historical multiples [52][53] Question: What is the potential upside if ICE contracts for all available beds? - Management estimated that filling 13,000 beds could lead to approximately $593 million in incremental revenue and $136 million in incremental EBITDA [92]

CoreCivic (NYSE:CXW) Q4 2025 Earnings call February 12, 2026 11:00 AM ET Speaker9day, and thank you for standing by. Welcome to the Q4 2025 CoreCivic Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you'll need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press ...

Group 1 - Management revenue from ICE, the largest government partner of the company, more than doubled year over year [1]

Core Insights - CoreCivic reported strong financial performance for Q4 and full year 2025, driven by facility activations and higher occupancy rates [1][2] - The company anticipates continued growth in 2026 due to increased demand from government partners and the activation of previously idle facilities [1][2] Financial Performance - Total revenue for Q4 2025 was $604.0 million, a 26% increase year-over-year, while full year revenue reached $2.2 billion, up 13% [2] - Net income for Q4 2025 was $26.5 million, a 38% increase from Q4 2024, with diluted EPS rising 53% to $0.26 [2][3] - Adjusted EBITDA for Q4 2025 was $92.5 million, up 25% year-over-year, and full year adjusted EBITDA was $365.6 million, an 11% increase [2][9] Operational Highlights - The Dilley Immigration Processing Center resumed operations in Q1 2025, contributing to increased occupancy levels, which rose to 78.1% in Q4 2025 from 75.5% in Q4 2024 [4][5] - Revenue from U.S. Immigration & Customs Enforcement (ICE) more than doubled year-over-year, reaching $244.7 million in Q4 2025 [7] - The company activated four previously idle facilities, positioning them for new contract awards and increased capacity [1][2] Capital Strategy - CoreCivic's share repurchase program has been expanded to $700 million, with $218.4 million spent on repurchasing 11.2 million shares in 2025 [12][13] - The company amended its revolving credit facility to increase capacity from $275 million to $575 million, enhancing balance sheet flexibility [14] 2026 Financial Guidance - For 2026, CoreCivic expects net income between $147.5 million and $157.5 million, with diluted EPS projected at $1.49 to $1.59 [19][20] - The guidance does not include potential new contract awards or activations of remaining idle facilities, which could impact financial performance [20][21]

Financial Performance - Total revenue for Q4 2025 was $604.0 million, up 26% year-over-year, and full year revenue reached $2.2 billion, up 13%[2] - Net income for Q4 2025 was $26.5 million, a 38% increase from Q4 2024, with diluted EPS at $0.26, up 53%[2][3] - Adjusted EBITDA for Q4 2025 was $92.5 million, a 25% increase compared to Q4 2024, driven by the resumption of operations at the Dilley Facility and the acquisition of the Farmville Detention Facility[8] - Total revenue for Q4 2025 was $603.95 million, a 26% increase from $479.29 million in Q4 2024[31] - Net income for Q4 2025 was $26.54 million, compared to $19.28 million in Q4 2024, representing a 38% increase[31] - Adjusted diluted EPS for Q4 2025 was $0.27, up from $0.16 in Q4 2024, reflecting a 69% increase[33] - Funds From Operations (FFO) for Q4 2025 was $53.53 million, compared to $43.28 million in Q4 2024, a 24% increase[35] - EBITDA for the twelve months ended December 31, 2025, was $362,117,000, up from $299,655,000 in 2024, reflecting a year-over-year increase of 20.9%[36] - Adjusted EBITDA for the three months ended December 31, 2025, was $92,454,000, compared to $74,160,000 in 2024, indicating a growth of 24.6%[36] Revenue Sources - Revenue from U.S. Immigration & Customs Enforcement (ICE) more than doubled to $244.7 million in Q4 2025 from $120.3 million in Q4 2024, reflecting increased operational capacity[6] Future Guidance - The company expects 2026 net income guidance of $147.5 million to $157.5 million and diluted EPS guidance of $1.49 to $1.59[18] - The guidance for net income for the year ending December 31, 2026, ranges from $147,500,000 to $157,500,000[37] - The projected EBITDA for the year ending December 31, 2026, is between $437,000,000 and $445,000,000[37] - Funds From Operations (FFO) is expected to be between $251,750,000 and $261,000,000 for the year ending December 31, 2026[37] - Interest expense for the year ending December 31, 2026, is estimated to be around $85,500,000[37] Operational Metrics - The occupancy level in the Safety and Community segments increased to 78.1% in Q4 2025 from 75.5% in Q4 2024[4] - Facility operating margins in the Safety segment decreased to 22.2% in Q4 2025 from 23.6% in the prior year quarter, but are expected to improve as new facilities reach stabilized occupancy[7] Capital Expenditures and Investments - CoreCivic plans to invest $30.0 million to $35.0 million in maintenance capital expenditures for real estate assets and $35.0 million to $40.0 million for capital expenditures associated with previously idled facilities in 2026[20] - The company has expanded its revolving credit facility from $275.0 million to $575.0 million, enhancing balance sheet flexibility for strategic investments[13] Shareholder Actions - The company repurchased 11.2 million shares of common stock in 2025 at an aggregate purchase price of $218.4 million, with $300.5 million remaining under the share repurchase program as of December 31, 2025[11][12] Financial Health - Total assets increased to $3.26 billion as of December 31, 2025, compared to $2.93 billion in 2024, marking an 11% growth[30] - The company reported a total long-term debt of $1.21 billion as of December 31, 2025, an increase from $973.07 million in 2024[30] - The company’s accumulated deficit decreased to $123.48 million in 2025 from $239.98 million in 2024, showing improvement in financial health[30] Strategic Focus - The company plans to focus on expanding its correctional and detention services in response to increased demand from government partners[25] - CoreCivic is actively pursuing new development and acquisition opportunities to enhance its service offerings and operational capacity[26] Non-GAAP Measures - The company emphasizes the importance of non-GAAP measures like FFO and Adjusted EBITDA for assessing operational performance[39] - Adjusted Net Income is calculated by adding certain expenses to GAAP Net Income to provide a clearer picture of ongoing operations[40]

Core Points - CoreCivic, Inc. will release its 2025 fourth quarter financial results on February 11, 2026, after market close [1] - A live conference call will take place on February 12, 2026, at 10:00 a.m. central time [1] - Participants can register in advance to join the call and will receive a confirmation email with details [2] - An audio-only webcast of the conference call will be available on CoreCivic's website, with a replay accessible for seven days [3] Company Overview - CoreCivic is a diversified government-solutions company focused on addressing government challenges through cost-effective solutions [4] - The company provides a range of services including corrections and detention management, alternatives to incarceration, and government real estate solutions [4] - CoreCivic 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]

Core Insights - The article emphasizes the importance of identifying companies with the potential to consistently outperform the broader market, focusing on those with robust, consistent, and predictable cash flows [1] - It highlights the significance of combining fundamental analysis with macroeconomic factors to develop a disciplined investment framework [1] - The author expresses a willingness to engage with the investment community to share actionable ideas and insights [1] Company Focus - The investment strategy is sector and asset class agnostic, indicating a broad approach to identifying value across various markets [1] - There is a particular interest in exploring opportunities in the fixed-income market depending on market cycles [1] Macroeconomic Considerations - The article stresses that macroeconomic developments can drive market cycles and influence valuation discounts or premiums [1] - Attention to macroeconomic factors is deemed essential for accurate valuation and sensitivity analysis [1]

Core Insights - The article emphasizes the importance of identifying companies with the potential to consistently outperform the broader market, focusing on those with robust, consistent, and predictable cash flows [1] - It highlights the significance of combining fundamental analysis with macroeconomic factors to develop a disciplined investment framework [1] - The author expresses a willingness to engage with the investment community to share actionable ideas and insights [1] Company Focus - The investment strategy is sector and asset class agnostic, indicating a broad approach to identifying value across various markets [1] - There is a particular interest in exploring opportunities in the fixed-income market depending on market cycles [1] Macroeconomic Considerations - The article stresses that macroeconomic developments can drive market cycles and influence valuation discounts or premiums [1] - Attention to macroeconomic factors is deemed essential for accurate valuation and sensitivity analysis [1]