Company Overview - CoreCivic is a leading owner and operator of partnership correctional, detention, and reentry facilities, with a national footprint and diversified service offerings [6] - The company focuses on operational efficiency and rehabilitation outcomes, providing comprehensive solutions to government partners [6] - CoreCivic serves federal, state, and local government agencies seeking outsourced correctional management and reentry support services [9] Financial Performance - For the fourth quarter of 2025, CoreCivic reported revenue of $604 million, representing a 26% year-over-year increase [10] - The full-year net income for 2025 was $116.5 million, up 69% from the previous year, with diluted EPS climbing to $1.08 [10] - As of February 24, 2026, the company's shares were priced at $16.47, reflecting a 9.7% decline over the past year [8][10] Recent Developments - On February 25, 2026, Hahn Capital Management disclosed a new position in CoreCivic, acquiring 241,322 shares valued at $4.61 million [1][2] - This acquisition represents 2.49% of Hahn Capital's reportable equity assets as of December 31, 2025 [8] - CoreCivic's management anticipates another growth year in 2026, with EPS guidance of $1.49 to $1.59 [10] Market Position - CoreCivic's stock is currently trading at approximately $16 per share, which is seen as undervalued given the improving earnings and expanding federal demand [11] - The company has a balance sheet with a net debt to EBITDA ratio of 2.8x and repurchased 11.2 million shares in 2025, indicating confidence in its intrinsic value [11] - The investment by Hahn Capital is viewed as a contrarian bet in a politically sensitive sector, as the company’s financials show positive trends despite the stock lagging behind the market [10][12]

Core Insights - The GEO Group, Inc. is recognized as one of the best video surveillance and private security stocks to buy, despite a recent downgrade in price target by Noble Capital due to slower-than-expected growth [1][2]. Financial Performance - For Q4 2025, GEO reported revenues of $707.7 million, with a net income of $31.8 million, translating to $0.23 per share, and an adjusted net income of $34.8 million, or $0.25 per share. The adjusted EBITDA was $126 million [3]. - For the full year 2025, GEO generated $2.63 billion in revenue, with a net income of $254.3 million, or $1.82 per share, and an adjusted net income of $120.1 million, or $0.86 per share. The adjusted EBITDA totaled $464.4 million [4]. Operational Highlights - The company expanded its ICE capacity by 6,000 beds, launched new contracts for secure transportation and electronic monitoring, and completed acquisitions and divestitures, including the San Diego Detention Facility [4]. - Cash flow and balance sheet strength improved, with year-end cash of $70 million and net debt reduced to $1.5 billion. GEO repurchased 4.94 million shares totaling $90.6 million under its $500 million authorization [5].

Core Insights - Hodges Capital Management Inc. increased its stake in The GEO Group by purchasing 507,012 shares, raising its total position to over 955,000 shares valued at $19.6 million [2][6][8] Company Overview - The GEO Group provides correctional, detention, and community reentry services through secure facilities and supervision programs in the U.S., Australia, and South Africa, primarily generating revenue from long-term government contracts [5] - As of November 6, 2025, GEO's stock price was $15.41, with a market capitalization of $2.14 billion and trailing twelve months (TTM) revenue of $2.53 billion and net income of $237.28 million [4] Financial Performance - GEO reported a 13.1% increase in revenue to $682.3 million for the third quarter, with adjusted earnings per share rising 19% to $0.25 compared to $0.21 in the same period last year [7][10] - Despite revenue and earnings growth, the market reacted negatively to the earnings release, leading to a 10% drop in share price over the following two days, likely due to fourth-quarter guidance concerns [10] Investment Position - The increase in GEO shares by Hodges Capital Management represents 1.7% of its reportable U.S. equity assets under management (AUM) [9] - The fund's top five holdings include significant positions in NASDAQ: WULF, NASDAQ: NVDA, NYSE: UBER, NYSE: TPL, and NYSE: CLF, with GEO being the 15th largest holding [9]