CXW · CoreCivic, Inc.

CoreCivic's Q1 2026 results showcased robust growth with revenue surging 25.8% to $614.7 million, propelled by activations of four previously idled facilities including the Dilley Immigration Processing Center, West Tennessee Detention Facility, California City Detention Facility, and Diamondback Correctional Facility, alongside the July 2025 Farmville acquisition. ICE revenue jumped 96.2% to $261.3 million, reflecting these expansions, while state revenues grew 3.6% on per diem hikes and population gains in Georgia, Montana, and Colorado. Net income rose 51% to $37.9 million, with diluted EPS up 65.2% to $0.38; adjusted figures were even stronger at $0.40 EPS. Facility operating margins edged up to 24.0% from 23.6%, aided by employee retention credits though expected to improve further at ramping facilities. Adjusted EBITDA climbed 36% to $110.1 million. Management highlighted a strong balance sheet with net debt to Adjusted EBITDA at 2.8x, supporting a $100 million incremental term loan for liquidity amid debt market assessment and potential asset sales. Share repurchases continued aggressively, with 2.3 million shares bought for $44.7 million, leaving $255.8 million available. The post-quarter CSP acquisition diversifies into correctional pharmacy services, targeting aging inmate needs across 600+ facilities, with expected 2026 EPS accretion of $0.03-$0.05. Updated FY2026 guidance reflects CSP and Midwest Regional Reception Center activation but tempers for temporary DHS/ICE population dips, raising Adjusted EBITDA to $453.8-$461.8 million. Conference call set for May 7, 2026.