CoreCivic, Inc.

What they do

CoreCivic operates through three segments: CoreCivic Safety, CoreCivic Community, and CoreCivic Properties. As of December 31, 2025, the Safety segment operated 44 correctional and detention facilities with approximately 68,000 beds, the Community segment operated 20 residential reentry centers with approximately 4,000 beds, and the Properties segment owned five properties with approximately 8,000 beds. The company generates revenue primarily from contracts with federal agencies including ICE, the BOP, and the USMS, as well as state government agencies.

Revenue drivers

• CoreCivic Safety — The largest segment, operating 44 correctional and detention facilities with about 68,000 beds. Revenue comes from per-diem and fixed-fee contracts with federal and state agencies, including ICE, BOP, and USMS.
• CoreCivic Community — Operates 20 residential reentry centers with about 4,000 beds, providing transitional housing and programming for individuals reentering society, primarily under contracts with federal and state agencies.
• CoreCivic Properties — Owns five properties with about 8,000 beds, leased to government partners. This segment generates rental revenue and represents a smaller portion of total company revenue.

Recent performance

For the second quarter of 2026, total revenue rose 27.3% year-over-year to $684.9 million, while net income declined 3.6% to $37.1 million, or $0.37 per diluted share. Adjusted Diluted EPS was $0.38, up 5.6% from the prior-year quarter, and Normalized FFO per diluted share increased 8.5% to $0.64. Adjusted EBITDA grew 5.9% to $109.4 million. The prior-year quarter included $11.6 million, or $0.08 per share, of Employee Retention Credits, which management notes muted the apparent earnings growth. Subsequent to quarter-end, CoreCivic sold four detention facilities to a federal government partner for total gross proceeds of $2.2 billion, or $307,000 per bed.

Strategy

CoreCivic is focused on activating previously idle facilities to meet increased federal detention demand, having activated the 2,400-bed Dilley Facility, the 600-bed West Tennessee Facility, the 2,560-bed California City Facility, the 2,160-bed Diamondback Facility, and the 1,033-bed Midwest Facility. The company acquired the Farmville Detention Center on July 1, 2025, and Clinical Solutions Pharmacy on April 1, 2026, to support operations. Following the $2.2 billion sale of four detention facilities, management intends to use the proceeds to strengthen the balance sheet and pursue growth and capital allocation priorities. The Board of Directors expanded the share repurchase authorization by $500 million in August 2026, reflecting a commitment to disciplined capital allocation.

Risks

• Dependence on government appropriations and contracts — CoreCivic relies on government appropriations and contracts that are subject to terminations, non-renewals, or competitive re-bids, and a government shutdown or budget cut could reduce revenue.
• Fluctuations in occupancy levels — Decreases in occupancy levels at its facilities could negatively impact revenue and profitability, as the company has significant fixed costs.
• Policy and privatization resistance — Resistance to privatization and negative publicity could result in the loss of existing contracts or inability to obtain new ones, and future administrations could restrict the use of private facilities.
• ICE use of non-traditional detention capacity — ICE has expanded its methods for physical detention by using non-traditional capacity and obtaining ownership of non-traditional facilities, which could reduce demand for CoreCivic's beds.

Outlook

Management stated that second quarter 2026 results exceeded expectations, driven by lower operating costs and slightly higher ICE populations. The company expects continued growth opportunities from federal legislative and executive actions, including the One Big Beautiful Bill Act, which appropriates $75 billion in mandatory funding to ICE through September 30, 2029, including $45 billion for detention capacity. CoreCivic has signed new contracts to activate five previously idle facilities and remains in discussions with ICE to activate additional idle facilities. However, management cautions that expectations about continued growth in federal detention bed utilization may not be realized.