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]