CXW

CoreCivic’s second quarter was marked by strong revenue growth and outperformance relative to Wall Street expectations, with management citing increased occupancy rates and higher demand from its federal government partners as primary drivers. CEO Patrick Swindle highlighted the significant activation of previously idle facilities and the completion of new management contracts, particularly with U.S. Immigration and Customs Enforcement (ICE). The quarter also benefited from the acquisition of Clinical Solutions Pharmacy and contributions from new contracts, as well as a favorable shift in revenue mix toward ICE-related services. Is now the time to buy CXW? Find out in our full research report (it’s free). Revenue: $684.9 million vs analyst estimates of $617.7 million (27.3% year-on-year growth, 10.9% beat) Adjusted EPS: $0.38 vs analyst estimates of $0.34 (11.8% beat) Adjusted EBITDA: $109.4 million vs analyst estimates of $108.4 million (16% margin, 0.9% beat) Management raised its full-year Adjusted EPS guidance to $1.66 at the midpoint, a 5.1% increase EBITDA guidance for the full year is $443 million at the midpoint, below analyst estimates of $454.1 million Operating Margin: 10.1%, down from 12% in the same quarter last year Market Capitalization: $3.35 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Greg Gibas (Northland Securities) asked about the EBITDA guidance impact from contract renegotiations tied to recent facility sales. CFO David Garfinkle said guidance incorporates a range of outcomes, but specifics are withheld due to ongoing negotiations. Marla Marin (Zacks) questioned whether preliminary asset sale talks with ICE would pause share repurchases. Garfinkle explained repurchases depend on negotiation status and open trading windows, but the intention is to resume buybacks when possible. William Sutherland (Benchmark) inquired about the margin profile of the newly activated Prairie facility. Garfinkle responded that margins should be consistent with other ICE contracts across the portfolio. Edwin Groshans (Compass Point Research and Trading) pressed for clarity on CoreCivic’s ability to reactivate idle capacity amid rising ICE apprehensions. Swindle said the company is well positioned with ready-to-activate facilities but cautioned on projecting the timing of additional activations. Joseph Anthony Gomes (Noble Capital) asked about per diem increases in state contracts and future demand from state and U.S. Marshals customers. Swindle confirmed state-level per diem adjustments and said trends are consistent with historical seasonal patterns. In the coming quarters, the StockStory team will be monitoring (1) the pace at which newly activated facilities reach target occupancy and contribute to margins, (2) the outcome of contract renegotiations following recent asset sales and their effect on revenue visibility, and (3) CoreCivic’s ability to deploy capital through the expanded share repurchase program without disrupting leverage targets. Further developments in ICE enforcement and potential new asset sales could also influence long-term strategic direction. CoreCivic currently trades at $33.63, up from $31.23 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 11:00 a.m. ET Managing Director, Investor Relations - Jeb Bachmann President and Chief Executive Officer - Patrick Swindle Chief Financial Officer - David Garfinkle Vice President of Finance - Brian Hammonds Operator: Good day, and thank you for standing by. Welcome to the Q2 CoreCivic Inc Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press *11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press *11 again. Please limit yourself to 1 question and 1 follow-up Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today. Please go ahead. Jeb Bachmann: Thank you, operator. Good morning, everyone, and welcome to CoreCivic's second quarter 26 earnings call. Participating on today's call are Patrick Swindle, CoreCivic's President and Chief Executive Officer and David Garfinkle, our Chief Financial Officer. We are also joined here in the room by our Vice President of Finance, Brian Hammonds. On this call, we will discuss financial results for the second quarter of 26 as well as updated financial guidance for the 2026 year. We will also discuss developments with our government partners and provide you with other general business updates. During today's call, our remarks, including our answers to your questions, will include forward looking statements pursuant to the safe harbor provisions of the Private Securities and Litigation Reform Act. Our actual results or trends may differ materially as a result of a variety of factors including those identified in our second quarter 26 earnings release issued after market yesterday as well as in our Securities and Exchange Commission filings, including Forms 10 ks, 10 Q, and also 8-K reports. You are cautioned that any forward looking statements reflect management's current views only and that the company undertakes no obligation to revise or update such statements in the future. Management will discuss certain non GAAP metrics. A reconciliation of the most comparable GAAP measurement is provided in the corresponding earnings release included in the company's quarterly supplemental financial data report posted on the Investors page of the company's website at corecivic.com. With that, it is my pleasure to turn the call over to our CEO, Patrick Swindle. Patrick Swindle: Thank you, Jeb. Good morning, and thank you for joining us for CoreCivic's second quarter 26 earnings call. On this morning's call, we will discuss our second quarter operational results, and provide updates on the latest developments with our government partners. Following my opening remarks, I will hand the call over to our CFO, David Garfinkel, who will provide greater detail on our second quarter 26 financial results as well as our updated 2026 financial guidance. David will also provide an update on our capital structure, including recent actions to reduce our outstanding indebtedness and planned activities for remaining proceeds from our recent asset sale activities. Before we discuss this quarter's financial performance, I want to highlight the activity that has occurred subsequent to the end of the second quarter. In early July, we announced the sale of 2 facilities. The California City Detention Facility and Otay Mesa Detention Center, both located in California to the Department of Homeland Security for gross proceeds of $1.5 billion Earlier this week, we announced the sale of 2 additional facilities, the Midwest Regional Reception Center located in Kansas the Prairie Correctional Facility located in Minnesota, to our government partner for gross proceeds of $734 million. After estimated income taxes and transaction cost, we estimate our net proceeds from these 4 sales to be approximately $1.6 billion At an average price per bed of $307 thousand and considering the location, size, cost, time, and effort to replace these facilities, We believe these sales were conducted at a fair valuation for both parties. And supports our continued work to be a dependable partner for government. These transactions also demonstrate the underlying value of the company real estate portfolio. They also fortify our already strong financial position create significant balance sheet flexibility for investments in our business, our capital allocation and our growth strategies going forward. As we have previously disclosed in the press releases the facilities that we have sold, we will continue operating these 4 facilities under terms of the existing management contracts. However, contract terms may be ultimately modified due to the transfer of ownership. We have adjusted fiscal 2026 guidance to account for the potential of modified terms which David will discuss further. In addition to the asset sales completed today, we have recently begun discussions with ICE about the potential acquisition of 10 additional detention facilities. These discussions are in preliminary stages, and we can provide no assurance that any additional sales will occur. Also earlier this week, and just prior to closing on the sale of the Prairie Correctional facility, we announced a new contract award to manage this 1.6 thousand-bed facility. Idle since 2010, we made significant investments in this over the last 18 months as we prepared it for occupancy. And we are pleased to reactivate another idle facility as we work to meet our government partner needs. We currently expect this facility to have a minimal contribution to earnings in 2026, as we have just begun hiring staff and expect to begin receiving detainees at facility in the fourth quarter. Bolstered by our strong cash position, we moved quickly to reduce our outstanding indebtedness to give us maximum flexibility as we consider how to best deploy remaining proceeds and continue our return of capital to our shareholders. A portion of the net sale proceeds was used to repay in full the outstanding balance under our $575 million revolving credit facility. Which is available to be withdrawn. And our incremental term loan. We have also announced our intention to redeem on 08/12/2026, $138.5 million of senior notes due in 2027. Following these actions, on August 4, the board approved a $500 million increase to our existing share repurchase program providing capacity for approximately $756 million in additional repurchases. I will now move on to a high level overview of our second quarter operational performance. Despite lower enforcement activity and reductions in nationwide ICE detention populations following leadership changes and funding uncertainty at the agency, Our second quarter results exceeded average analyst estimates for adjusted EPS by $0.04 and adjusted EBITDA by $2 million For purposes of reviewing results, we have redefined our operating and reportable segments during the second quarter to align financial reporting with the manner in which we manage the businesses. We now view operating results in 3 operating segments. CoreCivic Residential, CoreCivic Services, and CoreCivic Properties, which David will describe in more detail. Total occupancy for our residential segment for the quarter was 78.4%, up 1.6 percentage points since the year ago quarter. The average daily population across all of the facilities we manage was 66.4 thousand individuals during the second quarter of 26 compared with 54 thousand in the year ago quarter. Increase was driven by more demand for our services, new contracting activity, and the Farmville acquisition that was completed 07/01/2025. Our federal partners, primarily ICE and the US Marshal Service, comprised 53% of CoreCivic's total revenue in the second quarter. Revenue from our federal partners increased 27.2% during second quarter of 2 thousand 26 compared with the prior year quarter. Further breaking down our revenue mix, revenue from ICE increased $91.3 million or 51.6% while revenue from the US Marshals Service decreased by $14.1 million versus the prior year quarter. Some of this decline is simply a mix shift where ICE and Marshall share a contract. Revenue in the second quarter of 26 also benefited from the contribution of Clinical Solutions Pharmacy, which was in line with our expectations. Populations from ICE in our care increased by 6 thousand individuals, or 59.6%, from the beginning of 2025 through 06/30/2026. When we cared for 16.2 thousand average daily population decreased by 1.18 thousand individuals in the second quarter of 26 from the first quarter of 26 net of a 793 increase that occurred at the 5 facilities we have activated. January 2026, nationwide ICE detention populations reached historical highs of around 70.8 thousand individuals. However, a government shutdown that centered around Department of Homeland Security funding a reorganization of DHS leadership, and a subsequent impact to enforcement activities including redeployment of ICE agents to TSA checkpoints, led to a 10.5 thousand decrease in detention populations by April 2026. Consistent with our internal forecast, populations have begun to rise again, reaching 65.5 thousand in early July. David will review our population assumptions at a high level reflected in our financial guidance. As demand from IHS returned, populations at activating facilities continued to increase. We continue to receive detainee populations at our 2.56 thousand-bed California City detention facility where we signed a new contract effective 09/01/2025 our 2.16 thousand-bed Diamondback correctional facility where we signed a new contract effective September 30. 25. As of 06/30/2026, we cared for 16 hundred 74 and 15 hundred 22 individuals respectively at these 2 facilities. As mentioned last quarter, after obtaining a special use permit at the Midwest Regional Reception Center, we began accepting detainees previously idle facility in Marla. As of June 30, we cared for 379 individuals at this facility. We continue to maintain 4 idle corrections and detention facilities containing approximately 5.5 thousand beds to meet any federal or state increase in demand. We remain confident that the corrections and detention beds that we provide are the most humane most efficient logistically. Most compliant, most secure, readily available, and provide the best value to the government. Since our last earnings call, our share price has begun to reflect the underlying value of our business and our assets. However, we believe that our current share price continues to imply a significant discount to the fair value. Based on updated guidance, our enterprise value to EBITDA was actually contracted since last quarter after taking into consideration the cash on our balance sheet and we traded a meaningful discount for our long term average. Accordingly, we plan to continue prioritizing our share repurchase program taking into consideration our stock price and alternative opportunities to deploy capital. Additionally, recently completed facility sales provide meaningful proceeds that have been used to reduce outstanding debt and could be used for further debt repayments and investments to bolster our core business. Following on the successful acquisition of CSP, M&A could also provide opportunities for growth, but any potential transaction would need to be a strategic fit and compare favorably on a valuation basis with our other capital deployment targets. With that, I will turn the call over to David to discuss our second quarter financial results in more detail. Our capital allocation activities and the assumptions underlying our updated 2026 financial guidance. David? David Garfinkle: Thank you, Patrick, and good morning, everyone. In the second quarter of 26, we generated GAAP EPS of $0.37 per share and FFO per share of $0.63. Special items in the second quarter of 26 included $700 thousand of expenses associated with M&A activities reported in G&A expense, for the acquisition of Clinical Solutions Pharmacy compared with $1.5 million of M&A expenses in the prior year quarter related to the acquisition of the Farmville Detention Center. Excluding M&A expenses from both periods, adjusted EPS was $0.38 compared with $0.36 in the second quarter of 25. And normalized FFO per share was $0.64 per share compared with $0.59 per share in the prior year quarter. As a reminder, the prior year quarter included the collection of employee retention credits of $11.6 million including interest or $0.08 per share. Excluding this per share impact, from the prior year, adjusted EPS and normalized FFO per share increased 35.7% and 25.5%, respectively. Adjusted EBITDA was $109.4 million compared with $103.3 million in the second quarter of 25. Again, excluding the employee retention credits from the prior year quarter, adjusted EBITDA increased $17.7 million or 19.3%. We received the final payment we claimed for the employee retention credits in the first quarter of 2026. The increase in adjusted EBITDA from the prior quarter resulted from the activation of 5 previously idle facilities under new management contracts with ICE, the acquisitions of the Farmville Detention Center on 07/01/2025 and Clinical Solutions Pharmacy on 04/01/2026. Our per share results were also favorably impacted by an 8.9% decrease in weighted average diluted shares outstanding as a result of our share repurchase program. Following the acquisition of CSP, better reflect our operational strategy, beginning in the second quarter, we redefined our operating and reportable segments. Our CoreCivic Residential segment consists of the 64 correctional, detention, and reentry facilities we manage. Our CoreCivic Services segment consists of the delivery of complimentary services to the corrections industry including pharmaceutical supplies and services through CSP, transportation through our subsidiary TransCore, electronic monitoring and case management services as alternatives to incarceration through our subsidiary recovery monitoring solutions. Finally, our CoreCivic Property segment remains unchanged currently consisting of 5 correctional facilities held for lease to government agencies. Operating margins in our residential segment which generated 92.4% of our segment net operating income decreased to 22.4% from 26.1% in the prior year quarter, primarily due to $8.2 million of ERCs reflected in facility operations during the second quarter of 25. The operating margin was 24.5% in the prior year quarter excluding the ERCs. The decline in ICE populations in the second quarter of 26 which we believe was temporary, contributed to the margin decline. Further, although we generated operating income of $21.1 million at the 4 facilities we continue to activate, they were only 55% occupied during the second quarter of 2026. Operating margins are expected to increase in the second half of the year as occupancies increase at these facilities and as ICE populations portfolio wide increased from the declines in the second quarter. However, margins could be negatively impacted at the facilities we sold, and by start up activities under a new management contract with ICE at the 1.6 thousand-bed Prairie Correctional Facility. The operating margin in our services segment was 10.2% in the second quarter of 26, in line with expectations. The Services segment generated 6.1% of our segment net operating income in the second quarter of 26, up from 0.5% in the prior year quarter due to the acquisition of CSP. Turning next to the balance sheet. During the second quarter, we funded the $148 million initial purchase price for CSP with cash on hand and borrowings under the revolving credit facility. We also obtained a $100 million incremental term loan shortly following the acquisition to replenish the borrowings under the revolving credit facility. We obtained the incremental term loan, which had a 364-day maturity and was prepayable without penalty as a short term solution to maintain our strong liquidity position as we assess potential asset sales that could further enhance our liquidity. As of June 30, our leverage measured by net debt to adjusted EBITDA of 2.9x using the trailing 12 months. As of June 30, we had $108.9 million of cash on hand and an additional $273.3 million of borrowing capacity on our revolving credit facility, which had a balance of $280 million outstanding, providing us with total liquidity of $382.2 million. On 07/02/2026, we completed the sales of the 2.56 thousand-bed California City detention facility and our 1.99 thousand-bed Otay Mesa Detention Center both located in California, the Department of Homeland Security for a total gross sales price of $1.5 billion while retaining management of these facilities. After transaction costs and estimated federal and state income taxes, which will be paid next month, we estimate our net proceeds to be $1.1 billion. We use the net proceeds to pay down debt totaling $608.5 million as detailed in our press release including $238.5 million of our 4.75% unsecured notes that will be repaid on August 12. Earlier this week, after entering into a new management contract with ICE to activate our Prairie Correctional Facility in Minnesota, we completed the sales of our Midwest Regional Reception Center and our Prairie facility for a total gross sales price of $734 million again, retaining management of these facilities. After estimated federal and state income taxes and transaction costs, we estimate our net proceeds to be approximately $522 million. After income taxes and debt repayments, we will have approximately $1 billion of cash on hand total debt outstanding of $739.1 million, and $553.3 million of borrowing capacity under our revolving credit facility. This is more liquidity than the company has ever had and provides us with significant flexibility to execute our capital allocation strategy and growth plans. On August 4, the Board of Directors authorized an increase to our existing share repurchase program pursuant to which we may purchase up to an additional $500 million in shares of our common stock. Increasing the total repurchase authorization to $1.2 billion Since the share repurchase program was authorized in May 2022, we have repurchased a total of 28.1 million shares at an aggregate cost of $444.2 million or $15.82 per share. Including the increased authorization, therefore, have $755.8 million authorized and available under the share repurchase program. We expect to utilize a substantial portion of the remaining net proceeds from the facility sales to repurchase shares of our common stock under the recently expanded authorization. While these facility sales have created significant balance sheet flexibility following the sales, we still retain ownership of a vast real estate portfolio consisting of 56 correctional, detention, and reentry facilities with a design capacity of 63.7 thousand beds, containing 12.3 million square feet. Including 9 facilities contracted and dedicated fully to ICE with a design capacity of 10.8 thousand beds, containing 2.2 million square feet. Stated differently, even after these sales, we are not simply a services company. We remain a significant owner of specialized mission critical real estate infrastructure that is very difficult to replace with the operating expertise to manage those assets effectively for federal, state, and local government agencies providing steady, predictable cash flows. Moving lastly to a discussion of our updated 2026 financial guidance. Because of the significant gain on sale, we expect to generate diluted EPS of $15.15 to $15.20 and adjusted diluted EPS which excludes special items of $1.62 to $1.70, up from $1.53 to $1.63 in our previous guidance. We expect to generate normalized FFO per share of $2.61 to $2.70 from $2.60 to $2.70. We expect adjusted EBITDA of $440.5 million to $445.5 million compared with $453.8 million to $461.8 million. Our updated guidance reflects our best estimate of the financial impact of the aforementioned 4 facility sales and our expected continued management of these facilities. Although we and I have not yet modified the management contracts for these facilities to reflect the change in ownership, the range of our guidance incorporates our best estimate of the financial impact of the change in ownership. Updated guidance reflects the repayment of $608.5 million of debt including $238.5 million of 4.75% unsecured notes that will be repaid August 12. Our updated guidance for adjusted net income, FFO, and EBITDA were each favorably impacted by interest income associated with the residual cash balance after the repayment of debt resulting from the facility sales. Unlike net income and FFO, EBITDA excludes the benefit of the reduction in interest expense resulting from the repayment of debt. Our updated guidance does not include the impact of any share repurchases we may make during the second half of 26, which could negatively impact net income, FFO, and EBITDA for a reduction in interest income associated with any cash used to repurchase shares but could favorably impact their corresponding per-share measures for the reduction in our weighted average shares outstanding. In addition to the financial impact associated with the facility sales, our updated guidance reflects modestly higher residential populations based on recent trends compared with our previous forecast, which already contemplated higher populations in the second half of 26. The average daily ICE populations in our care declined by 6.6% during the second quarter from the first quarter of 2 thousand 26 and nationwide ICE detention populations declined from a high of 70.8 thousand at the end of January, to 60.3 thousand in early April, a decline of 14.8%. We believe these declines were for temporary reasons including a partial government shutdown that centered around DHS funding, a reorganization of DHS leadership, and the subsequent impact to enforcement activities including redeployment of ICE agents to TSA checkpoints each of which has since resolved. Since early April, nationwide ICE detention populations increased to 65.8 thousand or 9%, in mid July. ICE populations in our care increased by 17.7% during the same period. Although the updated guidance includes the new management contract at the Prairie facility, taking into account start up activities and a phased commencement of intake operations at the facility, the updated guidance reflects an immaterial impact to earnings for the remainder of 2026. The updated guidance also includes an increase in general and administrative expenses for higher incentive compensation associated with the facility sales. As Patrick mentioned, in addition to the facility sales completed to date, we have recently begun discussions with ICE about the potential acquisition of additional detention facilities from us. These discussions are in preliminary stages and our updated guidance does not include the impact of any potential additional facility sales. We plan to spend $65 million to $75 million on maintenance capital expenditures during 2026 and $15 million for other capital expenditures up $5 million from our prior guidance. Our 2026 forecast also includes $35 million to $40 million for capital expenditures associated with previously idle facilities, which are activating and for additional potential facility activations, down $5 million from our prior guidance. We expect adjusted funds from operations, or AFFO, which we consider a proxy for our cash flow available for capital allocation decisions such as share repurchases and growth CapEx such as acquisitions and facility activations to range from $257.5 million to $271.5 million for 2026. Ex we expect our annual effective tax rate to be 25% to 28%, substantially unchanged from our prior guidance. The full year EBITDA guidance in our press release provides you with our estimate of total depreciation and interest expense. We are forecasting G&A expenses in 2026 to range from $173 million to $175 million. I will now turn the call back to the operator to open up the lines for questions. Operator: Thank you. As a reminder, to ask a question, you will need to press *11 on your telephone and wait for your name to be announced. Please limit yourself to 1 question and to 1 follow-up question. Please stand by while we compile the Q&A roster. First question comes from the line of Gregory Gibas of Northland Securities. Gregory, please go ahead. Greg Gibas: Hey. Good morning, Patrick, David. Thanks for taking the questions. David Garfinkle: Are you able to provide how much of the adjusted EBITDA guidance delta reflects the anticipated contract adjustments to the facility sold? And maybe when does that imply contract changes were or will be effective? Hey, Gregory, it is David. Good question. Yeah, we are not we have incorporated the range of outcomes from those negotiations into our guidance, but we are not specifically quantifying them for obvious reasons. Those negotiations are not yet complete. But, we felt like putting incorporating our best estimate into the range would provide, investors with what the run rate could be. I do not yet know the effective date of those contract negotiations when they would be effective either as of yet. Greg Gibas: Got it. Got it. And then, also, as it relates to guidance, could you maybe discuss what it assumes with respect to ICE populations in Q3 and Q4 and maybe how that is changed since you last provided guidance? David Garfinkle: Yeah. Sure. If you recall last quarter, we expected ICE populations to be to decline in the second quarter of 26 and then increasing in the second half of the year. So that was already baked into our guidance, but we did increase probably the range is $5 million to $10 million for seeing those increases sooner than what we had in our previous guidance. And I think, you know, you have seen the nationwide detention populations have now been published, and, they have reflected an increase. So that is probably going a little bit faster than what we had anticipated last quarter. Greg Gibas: Understood. Thanks very much. David Garfinkle: You are welcome. Operator: Thank you. 1 moment for your next question. The next question comes from the line of Marla Marin of Zacks. M, please go ahead. Marla Marin: Thank you. So given that you are currently engaged in early stage with ICE regarding additional potential asset sales of facilities. Is it reasonable for us to think that there might be a temporary pause on share repurchases during this current quarter which presumably would not indicate any change in your prioritization of capital allocation. David Garfinkle: Yes, I will tag team Patrick on that maybe. It all depends on the status of negotiations. You will see we kind of change the tone of those discussions to be very preliminary at this point. So, you know, we have been in deep discussions for the due diligence on both Prairie and Midwest for a large part of the last quarter or maybe even beyond then. So that did create some restrictions on our ability to buy back stock. So it all depends on the facts and circumstances of what we know. At the time the window is open. Obviously, we are closed for earnings. Currently, until next week when our window would normally open up. But, based on discussions right now, you know, I think we feel pretty good about being able to buy back stock. In the second half of the year, but it will all depend on the status of those discussions. Patrick Swindle: And the only thing that I would add is, obviously, we have seen meaningful price movement in the second quarter. We did not repurchase shares in the second quarter That was not because we do not believe our stock is undervalued. And so we certainly see the value of being able to be in the market and initiate or continue our repurchase program. So certainly looking for those opportunities as they do present. Marla Marin: Understood. And as your occupancy consolidated occupancy, which reflects ICE and other government partners continues to rise, can you please remind us of what the historical peak was from prior years? David Garfinkle: Yeah. I have been with the company since 2001. That was probably the last time we were in the mid 90% occupancies. it is been a long-- it is been that long. Since it is been over 90%. Pre-pandemic, I think we were in the upper 80s in terms of total occupancy. So we have not yet hit that hit that percentage as of yet. Marla Marin: Mhmm. Okay. Thanks very much. Operator: 1 moment for your next question. The next question comes from the line of Jordan Neil Hymowitz of Philadelphia Financial. Jordan, please go ahead. Jordan Neil Hymowitz: Thank you. Couple things. So the $500 million buyback is not in the FFO guidance. So if you would buy that back, the FFO guidance should be, like, 15% or 16% high on a per share basis. Correct? David Garfinkle: Well, correct. We did not include any share buybacks in our guidance. You would have to wait. it is a weighted average calculation, so we would not get the immediate benefit for a full year. But yeah, I mean, depending on what price you are buying back at, you know, the current prices, I think it is around 15% to 17% of total shares outstanding if we were to execute on the full $500 million. Jordan Neil Hymowitz: Is there any program you could explain that is automatic buying? Like, there is a 10b-5 program? You said, automatically sell, and there is no blackouts. Is there any such thing that a bank could structure that automatically buys a certain amount every month So even if you were knowledge of MNPI, it would still execute? David Garfinkle: Well, you would have to be in an open window when you gave those instructions. I think I mean, nothing really better than a 10b-5 that would enable us to trade through closed windows. But, again, you have to be in an open window when you enter into those agreements, and then they could extend through a closed window. But and last question is, how much stock could you buy back? Or, said a different way,, what is the binding debt level to become an investment grade company which I assume is your goal. And so how much-- what ratios do you hope to retain would enable you to achieve an upgrade that would define in some ways how much stock you could buy back? If I understand you, Jordan, I think you are referring to the restricted payment covenant we have in our 2029 notes that limits our buyback we have a restricted payment basket unless we are below 2.0x leverage. And so, you know, using kind of current metrics, we could buy around $1 billion and still be below that 2.0x leverage. Did I did I get that question right, Jordan? Jordan Neil Hymowitz: You answered it a different way to the same place. Thank you. David Garfinkle: Okay. Patrick Swindle: Well, maybe to add on that just a bit. So what we have stated previously is our leverage policy is 2.25 to 2.75 times leverage. We are below that. We want to make sure that we are in a position where we are able to deploy capital at the levels that we believe would be advantageous to our shareholders and give us that flexibility, which is under 2.0x We have not established a target of investment grade necessarily And so we are always looking at what is optimal leverage from a value creation standpoint. We have been through periods of investment grade ratings and periods of noninvestment grade ratings, and so that is always a calculus that we consider when we are looking at our leverage policy and how we approach that. So but I think today, we should look at 2.0x as being the limiter, but at the same time, it is somewhat a function of the amount of cap available to deploy as well as additional capital that may result from additional future asset sales if they do occur because there is a point at which leverage could drop further to the extent that there are sufficient-- there are sufficient available proceeds to give us that flexibility while availing ourselves of a repurchase program or other investments. Operator: As a reminder, to ask a question, you will need to press *11 on your telephone and wait for your name to be announced. 1 moment for your next question. The next question comes from the line of William Sutherland of Benchmark. Bill, please go ahead. William Sutherland: Thank you. Hey. Good morning. When you have Prairie up and running, under contract, you know, at stable occupancy and $75 million in revenue, How should we think about the incremental EBITDA from that facility? David Garfinkle: I would say the margins on that facility are consistent with our other ICE contracts. Or consistent with the portfolio average as well. William Sutherland: Okay. David Garfinkle: And the they have I was also thinking about is there something we should know about the kind of the quarterly cadence for the rest of the year given the puts and takes that you talked about? With the model? Patrick Swindle: I think the only fluctuations you are going to see are we are still ramping up our California City facility, our Diamondback facility. Those are 2 large facilities that continue to ramp. I think I mentioned in my prepared remarks, the 4 facilities that are really ramping were ramping during Q2 were 55% occupied. So we do expect them to continue ramping in the second half of the year. If you back out our annual EBITDA guidance from like, what year to date EBITDA is, you get to run rate around $450 million of total adjusted EBITDA. Obviously does not include the Prairie facility because the Prairie facility, we will not be able to accept the first detainees until late this year. And it will not have reached full activation until the second quarter of 27. Mhmm. that is helpful. William Sutherland: Thanks. Patrick Swindle: And lastly, I was just thinking about the what DHS is trying to get done here with capacity. And curious what you have heard about anything other than obviously, the facilities they would like to buy from you and Gio and a few others. But where is the warehouse strategy at this point in their plans? Well, the public statements from DHS has been that there has been a de emphasis of the warehouse strategy. There were 4 of the warehouses. Of the 11 that they had purchased, they were continuing to explore whether they would convert those into operations. We believe they are still exploring that for some of those facilities. But, again, we have seen pivots in strategy multiple times under the current administration. And so whether we look back to the beginning with the Fort Bliss concept or allocator app address concept or utilization of state capacity or warehouse opportunities. there is been, you know, really a number of organic shifts in demand, and we have been there consistently through that process. And continue to believe we provide an optimal solution for ICE to the extent they wish to use it. And certainly, you are seeing that evidence through the award at our Prairie facility and have seen that with awards to our competitors. So I think we provide high quality solution that provides great value to the government and we are very well positioned to be able to meet any additional demand to the extent that it does present. William Sutherland: K. Thanks, Patrick. Appreciate it. Operator: 1 moment for your next question. The next question comes from the line of Edwin Groshans of Compass Point Research and Trading. Edwin, please go ahead. Edwin Groshans: Thank you for taking my call. I just you kind of talked about the outlook, and I guess, you know, we are talking about detentions. There were reports that July was a record for apprehensions for ICE. That followed the record in June. You know, there is talk of ICE has a target of 100 thousand to 120 thousand beds you know, and you mentioned you have 4 or 5 still idle facilities. So can you just talk about, like, you are seeing in detentions? And then expectations for the idle facilities whether that is reactivation. And I know you have discussed preliminary discussions on potential sales, but I guess really looking at reactivation given ICE activity. Patrick Swindle: So I would answer that. Through 2 lenses. So as you mentioned, there has been an increase in enforcement activity the last couple of months that we have seen reflected in increases in detention populations in our facilities and in the national statistics. I believe we have seen 3 contract awards just in the last month, for activation of new capacity that was previously idled. Within the industry, both ourselves and our competitor. So that clearly is an indication of anticipated additional demand needs I think it is difficult to project what the pace would be for bringing on additional capacity beyond those contracts that have already been awarded We have and continue to market our available capacity as mentioned in our press release, we have another or in our comments, another 5.5 thousand beds that are traditional turnkey facilities that are available today beginning in 4 facilities. So we have got an ability to be able to provide additional capacity that is needed, and we are very we are very well positioned to do that. We made significant investments in that idle capacity to make it ready. Again, we have seen increased demand recently. If that continues, I think we are very well positioned for more, but I would be reticent to provide, you know, any sense of timing at this point. Edwin Groshans: Fantastic, Patrick. We appreciate that. I guess if we look at ISIS target of 100 thousand-plus beds, I think there is been some commentary out there that is system wide. Maybe there are 85 thousand beds available, do you have a sense of how I mean, even if ICE were to buy or contract for the idle facilities, it still seems that they are gonna be short of their goal. Do you have any sense of how they can get to their goal especially now in the prior question with putting the warehouse program on ice. Patrick Swindle: Present time. My view on that would be, I think the goal is organic. it is based on what the ultimate detention bed needs are at given point in time. So what I would say at this moment, we believe that demand for additional capacity has increased with the awards that have already been made. We believe we are well positioned with already existing turnkey capacity to the extent there is more, and I believe there is other turnkey capacity available in the industry But as we have said on prior calls, we have also looked at a number of alternatives in terms of expansions of our existing facilities, or different ways that we could provide capacity to the extent that demand did manifest. And so I can see pathways for the provision of up to 100 thousand beds in the industry through a variety of different scenarios. Continue to believe that turnkey solutions are the best initial option and there is capacity to meet that demand initially. But we have done a number of scenario analyses and believe that there are some alternatives that could certainly leverage that capacity higher to the extent that the demand presented. Edwin Groshans: Good. And would what are those alternatives? I am sorry. Third question. I will stop after this. But what I have I have heard potential discussions of doing sort of soft-sided facilities on the sites? Is that when you talk about expansion, is that 1 of the potential alternatives? Patrick Swindle: There are a number of ways that you can flex up capacity and do it in a very humane and dignified way. On the locations that are already operational. So that would certainly be 1 pathway to achieving the additional capacity of goal. And having capacity colocated can be very helpful for both the agency and for us operationally. As we try to deliver the highest quality service possible by concentrating at a single location allows us to also concentrate resources. So, absolutely, that would be you know, I am not gonna speak to the form. You mentioned soft sided. There could be a variety of forms of providing that capacity, but certainly, that would be an optimal way to scale up capacity. Operator: 1 moment for your next question. The next question comes from the line of Jordan Neil Hymowitz of Philadelphia Financial. Jordan, please go ahead. Jordan Neil Hymowitz: I just want to follow-up on Edwin's very thoughtful question. And that is, you have now gone down the path of being willing to sell your facilities to others, and you have sold them to the government. But would you be willing to sell them to event centers or apartments or and I and I think in my own mind towards the San Francisco Armory which was a prison at 1 point, which became a movie theater show and now housing. In other words, are you willing to evaluate your assets at different price points to see what is there as opposed to just the use that it is currently in. Patrick Swindle: We are always evaluating the ways to maximize the value of our assets. And looking at the alternatives that might present. I can say we have not at this moment considered actively alternative uses for our facilities. We believe the highest and best use is what they are purpose built for. We think that generates the highest value for those assets to the extent that we do consider a sale. But if we were to be approached by a buyer that had interest in our capacity, we would certainly not turn away that conversation. So to the extent that someone did want to engage in dialogue, we are very open to that. But at this time, again, think the best value that we can capture from our assets is for the purpose that they were originally built. Jordan Neil Hymowitz: Thank you. Operator: 1 moment for your next question. The next question comes from the line of Joseph Anthony Gomes of Noble Capital. Joe, please go ahead. Joseph Anthony Gomes: Good morning, Patrick and David. Morning, Joe. Had a lot of discussion today on ICE. Let's switch gears here. Maybe, Dave, you could talk a little bit, and Patrick, on the state opportunities the US Marshals, where those populations have been. And I know this time here in July is normally when they you get your per diem increases. Maybe you could talk a little bit about how that unfolded this year. Patrick Swindle: So at the state level, we have made our way through the state legislative process. Our team was very effective at getting the traditional inflation related per diem increases that we would expect we would get. We saw adjustments in some markets for additional compensation for wages for our staff as we have provided significant wage increases in recent years, So I would say from a state perspective, very consistent with what you would expect. No anomalies. That portion of our business continues to perform well, and the outlook for the balance of the year continues to be solid in our state operations. We find out later in the year after the legislative session have resolved and they begin to spend budget dollars as to what additional demand may present So it is very possible that we could see additional demand for services from those customers, but certainly do not have anything at this time that would be notable to share. And then on the Marshal Service, 1 of the things that we referenced in both our press release and our script is that in a number of our facilities where the Marshals Service and ICE share capacity, you see a mix shift from Marshals Service to ICE. We have seen positive movement in marshal populations in the last quarter, but when you look at overall trends, I would say we are seeing trends that would be, I think, this point consistent with the seasonal expectations that, we would normally see this time of year. But not more than that. Joseph Anthony Gomes: Okay. Patrick Swindle: And then, Patrick, 10 thousand foot level type question here. Again, we made the sales got the proceeds, increased stock buyback. Joseph Anthony Gomes: The stock's up 70% year-to-date. What kind of gives you confidence? What are you looking at that the stock today is still a great value for the share repurchase program. Patrick Swindle: Yeah. Thank you for that question. I would go back a little bit to the question that was asked earlier around free cash flow per share. Because with the cash that we have on our balance sheet with it not having been deployed, you do not see the value of that cash reflected yet in our per share metrics. And so the consequence of that is when you look at EPS or price to earnings or you look at free cash flow per share at this moment, we believe it understates the value of the cash that sits on our balance sheet. So for our purposes, the way that I have looked at the value of our company at this moment is from an enterprise value to EBITDA perspective. And so if I think about the dynamics that we have seen since the beginning of the year, we have seen north of a 60% increase in our share price but we are actually trading more cheaply today than we did coming into the year. And so from a multiple perspective, our multiple today well, there is been movement during the today, but it is approximately 6x EBITDA, which is well below our historical EBITDA multiple average over the last 20 years of 9.5 times. So I would argue we are objectively cheap. And then how do I look at that in terms of the value creation that is occurred? So looking at the 4 transactions that we have completed, $1.6 billion in net after-tax proceeds that is $16 per share in cash. So I think about the beginning of the year, the additional cash from these transactions, the performance and visibility that you have with the guidance that we have provided, which we believe reflects the impact that we are going to see on our operating contracts And you are looking at a stock that despite the movement we have experienced here today, we believe is significantly undervalued. And so just using enterprise value to EBITDA and our guidance and the debt level that David described, it is $734 million as we go forward. And 9.5x our shares would trade just north of $48. Which, again, that is our 20 year average. Look at 8x, we would trade at $41.50. At 7x, $37. And today, you know, we are trading approximately $32. We think the stock is still very attractively valued, and that is based on the value that we have been able to capture this year and that we would hope to be able to redeploy in a way that over time is reflected in our per share metrics. Joseph Anthony Gomes: Thank you for that, Patrick. Much appreciated. Patrick Swindle: Thank you. Operator: This concludes the question and answer session. We will now turn the call back over to Patrick Swindle for any closing remarks. Patrick Swindle: Thank you, operator, and thank you, everyone, who is joined our second quarter earnings call today. In closing, our overall operational performance affirms that the goals that we set are translating into meaningful results. Strong operating and financial performance, successful facility activations, and continued demand from our government partners reflect the confidence we have earned by delivering quality, compliant service and care. These outcomes also demonstrate the strength of our people and our ability to respond to change with integrity, excellence, teamwork, service, and impact. Just as important, our progress confirms that we are well positioned to lead our industry's evolution. Adapting, innovating, and expanding our capabilities while strengthening our culture and our relationships. When we improve operations, support our employees, and deliver better outcomes for those in our care and the partners and communities we serve, we turn performance into purpose. That is how we advance our strategic ambition of building safer, healthier, more productive communities 1 person at a time. Again, thank you all for joining today. Operator: This concludes today's conference call. You may now disconnect. Before you buy stock in CoreCivic, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CoreCivic wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. CoreCivic (CXW) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in CoreCivic, Inc.? Here are five stocks we like better. CoreCivic exceeded second-quarter earnings expectations, reporting adjusted EPS of $0.38 and adjusted EBITDA of $109.4 million. Excluding prior-year Employee Retention Credits, adjusted EPS rose 35.7% and adjusted EBITDA increased 19.3% year over year. The company sold four facilities to government partners for approximately $2.23 billion in gross proceeds, expecting about $1.6 billion after taxes and transaction costs. CoreCivic used proceeds to repay debt and plans to allocate a substantial portion of the remaining cash toward share repurchases, with total authorization now at $1.2 billion. CoreCivic raised its 2026 adjusted EPS outlook to $1.62–$1.70 and expects GAAP EPS of $15.00–$15.20, largely reflecting facility-sale gains, but lowered adjusted EBITDA guidance to $440.5–$445.5 million due partly to potential contract changes after the sales. CoreCivic (NYSE:CXW) reported second-quarter 2026 results that exceeded average analyst estimates for adjusted earnings per share and adjusted EBITDA, while outlining a series of facility sales, debt repayments and expanded share-repurchase capacity. President and Chief Executive Officer Patrick Swindle said the company sold four facilities to government partners for combined gross proceeds of about $2.23 billion. The transactions include the California City Detention Facility and Otay Mesa Detention Center in California, sold to the Department of Homeland Security for $1.5 billion, as well as the Midwest Regional Reception Center in Kansas and Prairie Correctional Facility in Minnesota, sold for $734 million. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth After estimated taxes and transaction costs, CoreCivic expects net proceeds of approximately $1.6 billion from the four sales. The company will continue managing the facilities under existing contracts, though management said contract terms could be modified following the ownership transfers. CoreCivic generated GAAP earnings per share of $0.37 in the second quarter and funds from operations, or FFO, of $0.63 per share. Adjusted EPS, excluding acquisition-related expenses, was $0.38, compared with $0.36 in the prior-year quarter. Normalized FFO was $0.64 per share, up from $0.59 a year earlier. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Chief Financial Officer David Garfinkle noted that the prior-year quarter included $11.6 million in Employee Retention Credits, including interest. Excluding that benefit, adjusted EPS increased 35.7% and normalized FFO per share increased 25.5% year over year. Adjusted EBITDA totaled $109.4 million, compared with $103.3 million in the second quarter of 2025. Excluding the prior-year Employee Retention Credit benefit, adjusted EBITDA increased $17.7 million, or 19.3%. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High The company redefined its operating and reportable segments during the quarter. The CoreCivic Residential segment now includes 64 correctional, detention and reentry facilities. The CoreCivic Services segment includes pharmaceutical supplies and services through Clinical Solutions Pharmacy, transportation through TransCor, and electronic monitoring and case-management services through Recovery Monitoring Solutions. The CoreCivic Property segment, consisting of five facilities leased to government agencies, was unchanged. Residential operating margins declined to 22.4% from 26.1% a year earlier, primarily because the prior-year period included Employee Retention Credits. Excluding those credits, the prior-year margin was 24.5%. Garfinkle said lower ICE populations during the second quarter and the ramp-up of newly activated facilities also affected margins. Total occupancy in the Residential segment was 78.4%, up 1.6 percentage points from the prior-year quarter. Average daily population across CoreCivic-managed facilities rose to 66,363 people from 64,026 a year earlier, driven by increased demand, new contracts and the Farmville acquisition completed in July 2025. Federal partners, primarily U.S. Immigration and Customs Enforcement and the U.S. Marshals Service, represented 53% of second-quarter revenue. Revenue from federal partners increased 27.2% year over year. ICE revenue rose $91.3 million, or 51.6%, while U.S. Marshals Service revenue declined $14.1 million, partly reflecting contract-level population mix shifts between the agencies. CoreCivic’s ICE population increased by approximately 6,000 people, or 59.6%, from the beginning of 2025 through June 30, reaching 16,197 individuals. However, average daily population declined by 1,184 people in the second quarter from the first quarter, net of a 793-person increase at five activated facilities. Swindle said nationwide ICE detention populations fell after reaching roughly 70,800 in late January, citing a Department of Homeland Security funding-related shutdown, leadership reorganization and the redeployment of ICE agents to Transportation Security Administration checkpoints. Nationwide populations subsequently rose to about 65,500 in early July. The company continues ramping capacity at the 2,560-bed California City Detention Facility and 2,160-bed Diamondback Correctional Facility. As of June 30, the facilities housed 1,674 and 1,522 individuals, respectively. The Midwest Regional Reception Center began accepting detainees in March and housed 379 individuals at quarter-end. CoreCivic also received a new contract to manage the 1,600-bed Prairie Correctional Facility, which had been idle since 2010. The company expects to begin receiving detainees in the fourth quarter and said the facility will make only a minimal earnings contribution in 2026 because of start-up activity. CoreCivic used a portion of the initial facility-sale proceeds to repay its $575 million revolving credit facility balance and an incremental term loan. The company also plans to redeem $238.5 million of 4.75% senior notes due in 2027 on Aug. 12. Following taxes and debt repayments, Garfinkle said CoreCivic expects to hold about $1 billion in cash, with total debt outstanding of $739.1 million and $553.3 million of available revolving-credit capacity. On Aug. 4, the board authorized a $500 million increase to the company’s share-repurchase program, bringing total authorization to $1.2 billion. CoreCivic had repurchased 28.1 million shares for $444.2 million, or $15.82 per share, since the program began in May 2022, leaving $755.8 million available. Management said it expects to use a substantial portion of remaining facility-sale proceeds for share repurchases, while also considering debt reduction, business investment and potential acquisitions. Swindle said the company has also begun preliminary discussions with ICE concerning possible additional detention-facility sales, though no assurance was provided that further transactions will occur. CoreCivic raised its adjusted diluted EPS outlook to $1.62 to $1.70, from prior guidance of $1.53 to $1.63. It maintained normalized FFO guidance of $2.61 to $2.70 per share, compared with its earlier range of $2.60 to $2.70. The company now expects GAAP diluted EPS of $15.00 to $15.20, reflecting the significant gains from facility sales. Adjusted EBITDA guidance was lowered to $440.5 million to $445.5 million from $453.8 million to $461.8 million, incorporating CoreCivic’s estimate of possible contract modifications following the ownership transfers. Garfinkle said the outlook also assumes modestly higher residential populations than previously forecast, reflecting recent ICE population trends. Guidance does not include the effects of potential second-half share repurchases or any additional facility sales. CoreCivic, Inc (NYSE: CXW) is a real estate investment trust specializing in the ownership, management and operation of private correctional and detention facilities in the United States. The company enters into contracts with federal, state and local government agencies to house inmates and detainees in facilities that it owns or operates on a concession basis. In addition to traditional prison operations, CoreCivic provides specialized services such as community-based reentry programs, electronic monitoring and rehabilitation initiatives aimed at reducing recidivism. CoreCivic's portfolio encompasses a mix of adult correctional facilities, immigration detention centers, residential reentry centers and other community-based programs. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "CoreCivic Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. CoreCivic (CXW) is back in focus after a packed August 2026 update that combined raised full year earnings guidance, large asset sales, major debt repayment, and a larger share repurchase authorization. See our latest analysis for CoreCivic. The strong August news flow has come alongside a sharp move in CoreCivic’s share price, with a 90 day share price return of 58.58% and a year to date share price return of 69.51%. Over longer periods, the 3 year total shareholder return of 213.01% and 5 year total shareholder return of 197.42% point to a stock that has already rewarded patient holders, while the 1 year total shareholder return of 61.20% shows recent momentum coinciding with earnings, asset sales, debt reduction, and an expanded buyback. If CoreCivic’s recent run has you looking for what else might be moving, this is a good moment to widen your search and check out 20 top founder-led companies CoreCivic now has fresh contracts, large asset sale gains, and a leaner balance sheet, yet the stock has already moved sharply. Is this still a strong business at a sensible price, or has the re-rating gone too far? At a last close of $32.24 versus a narrative fair value of $36.40, CoreCivic is being framed as undervalued by the most widely followed storyline. Read the complete narrative. Want to see what turns that funding backdrop into a higher fair value for CoreCivic? The narrative leans on rising utilization, thicker margins, and a future earnings profile that looks very different to today. Result: Fair Value of $36.40 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, CoreCivic’s story can change quickly if federal detention priorities shift away from private facilities, or if key ICE and U.S. Marshals contracts are not renewed. Find out about the key risks to this CoreCivic narrative. While CoreCivic's most popular narrative points to an 11.4% discount to fair value, the simple earnings multiple tells a less generous story. The stock trades on a P/E of 24.7x, above both peer averages at 20.6x and the wider US Commercial Services industry at 20.1x. That premium raises a practical question: Is the recent earnings momentum strong enough for you to feel comfortable paying more than the sector for each dollar of profit? See what the numbers say about this price — find out in our valuation breakdown. With CoreCivic’s recent moves sparking strong opinions on both risk and reward, this is a good time to look through the details yourself and act decisively. To weigh the mixed sentiment with your own research, start by reviewing the balance of 1 key reward and 1 important warning sign. If CoreCivic has sharpened your focus, do not stop with a single stock. Broaden your watchlist with fresh ideas that match the kind of opportunities you care about. Target strong long term value by scanning companies that combine quality with attractive pricing through the 50 high quality undervalued stocks. Build a steadier income stream by reviewing higher yielding opportunities using the 9 dividend fortresses. Prioritise resilience first by filtering for companies with healthier finances and sturdier profiles via the solid balance sheet and fundamentals stocks screener (49 results). This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CXW. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Completed the sale of four facilities for approximately $2.2 billion in gross proceeds, with two facilities sold to the Department of Homeland Security and two sold to a government partner., validating the underlying value of the company's real estate portfolio at an average price of $307,000 per bed. Transitioned to a new three-segment reporting structure—Residential, Services, and Properties—to better align financial reporting with the current management of diversified operations following the Clinical Solutions Pharmacy acquisition. Attributed second-quarter outperformance to increased demand for services and new contracting activity, despite temporary nationwide ICE detention population declines driven by DHS funding uncertainty and leadership reorganization. Reactivated the idle 1.6 thousand-bed Prairie Correctional Facility through a new management contract, demonstrating the company's ability to meet government partner needs by investing in and deploying idle capacity. Maintained that current share prices imply a significant discount to fair value, noting that enterprise value to EBITDA has actually contracted since the previous quarter despite recent stock price appreciation. Federal partner revenue increased 27.2% year-over-year, driven primarily by a 51.6% increase in ICE revenue, which offset a $14.1 million decline in U.S. Marshals Service revenue due to contract mix shifts. Authorized a $500 million increase to the share repurchase program, with management intending to utilize a substantial portion of the $1.6 billion in net asset sale proceeds to reduce share count. Entered preliminary discussions with ICE regarding the potential acquisition of 10 additional detention facilities, though management cautioned that these talks are in early stages with no guaranteed outcome. Projected higher residential populations for the second half of 2026 based on recent trends showing nationwide ICE detention populations rising from April lows of 60.3 thousand to 65.8 thousand in mid-July. Anticipates operating margins will improve in the latter half of the year as occupancy increases at four recently activated facilities that were only 55% occupied during the second quarter. Maintains a leverage policy target of 2.25x to 2.75x, but expects to remain below 2.0x in the near term to provide maximum flexibility for capital deployment and potential future asset sales. Estimated net proceeds of $1.6 billion from the four facility sales will be used to pay down $608.5 million in debt, including the full repayment of the revolving credit facility and an incremental term loan. Management warned that while they will continue to operate the sold facilities, contract terms may be modified due to the transfer of ownership, which is factored into the updated guidance range. Identified a $138.5 million redemption of senior notes due in 2027 scheduled for August 12, 2026, as part of a broader strategy to optimize the capital structure. Noted that the Prairie facility activation will have a minimal contribution to 2026 earnings due to start-up costs and a phased intake process not reaching full capacity until Q2 2027. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management declined to quantify the specific EBITDA impact of contract adjustments as negotiations are ongoing, but confirmed the range of outcomes is incorporated into updated guidance. The effective dates for these modified management terms have not yet been finalized. Management indicated that while preliminary discussions for 10 additional sales are occurring, they do not currently expect these to prevent share repurchases in the second half of the year. Buyback activity will depend on the status of material non-public information and the opening of trading windows. Management stated that while they believe the 'highest and best use' for their assets is their purpose-built design, they are open to dialogue with buyers interested in alternative uses like housing or event centers. No active consideration of alternative uses is currently underway, as the focus remains on government partnerships. Management believes the industry can reach 100,000 beds through a combination of turnkey solutions, expansion of existing operational sites, and flexing capacity in a 'humane and dignified' way. Concentrating resources at single locations through expansion is viewed as an operationally optimal way to scale for the agency.

This article first appeared on GuruFocus. GAAP EPS: $0.37 per share for Q2 2026. Adjusted EPS: $0.38 per share, up from $0.36 in Q2 2025. Normalized FFO per Share: $0.64, compared with $0.59 in the prior year quarter. Adjusted EBITDA: $109.4 million, up from $103.3 million in Q2 2025. Residential Segment Operating Margin: Decreased to 22.4% from 26.1% in the prior year quarter. Services Segment Operating Margin: 10.2% in Q2 2026. Total Occupancy: 78.4% for the residential segment, up 1.6 points year-over-year. Average Daily Population: 66,363 individuals, compared with 64,026 in the year-ago quarter. Federal Partner Revenue: Increased 27.2% year-over-year; comprised 53% of total revenue. ICE Revenue: Increased $91.3 million, or 51.6%, versus the prior year quarter. US Marshals Service Revenue: Decreased by $14.1 million versus the prior year quarter. Net Debt to Adjusted EBITDA: 2.9 times as of June 30, 2026. Cash and Liquidity: $108.9 million cash on hand and total liquidity of $382.2 million as of June 30, 2026. 2026 Guidance - Diluted EPS: $15.00-$15.20. 2026 Guidance - Adjusted Diluted EPS: $1.62-$1.70, up from $1.53-$1.63. 2026 Guidance - Normalized FFO per Share: $2.61-$2.70. 2026 Guidance - Adjusted EBITDA: $440.5 million to $445.5 million. 2026 Guidance - AFFO: $257.5 million to $271.5 million. 2026 Capital Expenditures: $65-$75 million for maintenance, $15 million for other, and $35-$40 million for facility activations. Warning! GuruFocus has detected 9 Warning Signs with CXW. Is CXW fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. CoreCivic Inc (NYSE:CXW) completed the sale of four facilities to government partners for gross proceeds of $2.234 billion, generating approximately $1.6 billion in net proceeds and demonstrating the underlying value of its real estate portfolio. The company used a portion of the sale proceeds to repay $608.5 million in debt, including the full balance of its revolving credit facility and an incremental term loan, significantly strengthening its balance sheet and providing record liquidity of over $1 billion in cash. CoreCivic Inc (NYSE:CXW) announced a new contract award to manage the 1,600-bed Prairie Correctional Facility, which was idle since 2010, reflecting continued demand from government partners and successful facility reactivation efforts. Second quarter 2026 results exceeded analyst estimates, with adjusted EPS of $0.38 and adjusted EBITDA of $109.4 million, representing a 35.7% increase in adjusted EPS and a 19.3% increase in adjusted EBITDA when excluding prior-year Employee Retention Credits. The board approved a $500 million increase to the share repurchase program, providing approximately $756 million in additional repurchase capacity, and management believes the stock remains significantly undervalued, trading at roughly 6 times EBITDA versus a 20-year historical average of 9.5 times. ICE populations in CoreCivic Inc (NYSE:CXW)'s care increased by 17.7% from early April to mid-July, and nationwide detention populations have rebounded 9% from their April lows, supporting the company's outlook for higher occupancy in the second half of 2026. CoreCivic Inc (NYSE:CXW)'s updated 2026 adjusted EBITDA guidance was reduced to $440.5-$445.5 million from $453.8-$461.8 million, reflecting the anticipated financial impact of modified management contract terms for the four sold facilities. The company experienced a temporary decline in ICE detention populations during the second quarter, with average daily populations decreasing by 6.6% from the first quarter, driven by a government shutdown, DHS leadership reorganization, and redeployment of ICE agents to TSA checkpoints. Operating margins in the Residential segment decreased to 22.4% from 26.1% in the prior year quarter, partly due to the temporary decline in ICE populations and the fact that recently activated facilities were only 55% occupied during the quarter. The company did not repurchase any shares during the second quarter due to restrictions related to ongoing asset sale negotiations, and future buyback activity may be limited by the status of preliminary discussions with ICE regarding potential additional facility sales. The new management contract at the Prairie Correctional Facility is expected to have an immaterial impact on 2026 earnings due to startup activities and a phased commencement of intake operations, with full activation not expected until the second quarter of 2027. CoreCivic Inc (NYSE:CXW) faces uncertainty regarding the final terms of management contracts for the sold facilities, as negotiations with ICE have not yet been completed, and the company cannot provide assurance that any additional facility sales will occur. Q: Given the recent facility sales and the $500 million increase to the share repurchase program, what gives you confidence that the stock is still undervalued, and how do you view the current valuation? A: Patrick Swindle, CEO, explained that despite a 60%+ increase in share price year-to-date, the company is trading at approximately 6 times EBITDA, well below its 20-year historical average of 9.5 times. He highlighted that the $1.6 billion in net after-tax proceeds from the four facility sales equates to $16 per share in cash, which is not yet reflected in per-share metrics. Using the 20-year average multiple, he calculated the shares would trade just north of $48, compared to the current price of approximately $32, indicating significant undervaluation. Q: Can you provide more detail on the adjusted EBITDA guidance delta related to the anticipated contract adjustments for the sold facilities, and when will those changes be effective? A: David Garfinkle, CFO, stated that the company has incorporated a range of outcomes from the ongoing negotiations into its guidance but did not quantify the specific impact. He noted that the negotiations are not yet complete and the effective date of any contract modifications is unknown at this time. Q: What are the assumptions for ICE populations in Q3 and Q4, and how has that changed since the last guidance? A: David Garfinkle, CFO, said the guidance already anticipated a decline in Q2 and an increase in the second half of the year. The updated guidance reflects a $5 million to $10 million increase in EBITDA due to ICE populations rising faster than previously expected, as nationwide detention populations have increased 9% since early April. Q: Given the early-stage discussions with ICE about additional asset sales, is there a temporary pause on share repurchases this quarter? A: David Garfinkle, CFO, explained that the pace of buybacks depends on the status of negotiations. The company was restricted from buying back stock during the due diligence for the Prairie and Midwest sales, but based on current discussions, they feel good about being able to repurchase shares in the second half of the year. Patrick Swindle, CEO, added that the lack of repurchases in Q2 was not due to a lack of belief in undervaluation but rather the timing of the sales. Q: How much stock could the company buy back, and what is the binding debt level to achieve investment grade status? A: David Garfinkle, CFO, clarified that the restricted payment basket covenant in the 2029 notes limits buybacks unless leverage is below 2 times. Using current metrics, the company could buy around $1 billion in stock and still remain below that threshold. Patrick Swindle, CEO, added that the company's leverage policy is 2.25 to 2.75 times, but they aim to stay under 2 times to maintain flexibility, though they have not set a specific target for investment grade status. Q: With the Prairie facility under contract and at stable occupancy, how should we think about the incremental EBITDA from that facility? A: David Garfinkle, CFO, stated that the margins at the Prairie facility would be consistent with other ICE contracts and the portfolio average. He noted that the facility will not accept its first detainees until late 2026 and won't reach full activation until the second quarter of 2027. Q: What is the quarterly cadence for the rest of the year, given the various puts and takes in the model? A: David Garfinkle, CFO, indicated that the main fluctuations will come from the continued ramp-up of the California City and Diamondback facilities, which were only 55% occupied in Q2. He noted that backing out the annual EBITDA guidance from year-to-date results implies a run rate of around $450 million, which excludes the Prairie facility's contribution. Q: What is the status of DHS's warehouse strategy, and how does that impact CoreCivic's positioning? A: Patrick Swindle, CEO, said DHS has publicly de-emphasized the warehouse strategy, with only 4 of the 11 purchased warehouses still being explored for conversion. He noted that the company has seen multiple strategic pivots under the current administration but believes CoreCivic provides an optimal solution for ICE, as evidenced by the recent contract award at the Prairie facility. Q: With ICE's reported target of 100,000 to 120,000 beds, how can the industry reach that goal, and what is CoreCivic's role? A: Patrick Swindle, CEO, stated that recent enforcement activity has increased, with three new contract awards for previously idle facilities in the last month. He noted that CoreCivic has 5,500 turnkey beds available and has analyzed various scenarios to provide up to 100,000 beds industry-wide. He mentioned that expanding capacity at existing sites, potentially through soft-sided facilities, is one pathway to meet additional demand. Q: Would the company consider selling facilities for alternative uses, such as event centers or housing, to maximize value? A: Patrick Swindle, CEO, said the company is always evaluating ways to maximize asset value but has not actively considered alternative uses. He believes the highest and best use for the facilities is their purpose-built function, which generates the highest value. However, he noted the company would be open to conversations with buyers interested in alternative uses. Q: Can you provide an update on state opportunities, US Marshals populations, and the annual per diem increases? A: Patrick Swindle, CEO, reported that the state legislative process went well, with traditional inflation-related per diem increases secured and adjustments for staff wages in some markets. He noted that state operations continue to perform well. For the US Marshals Service, he observed positive population movement in the last quarter, with trends consistent with seasonal expectations, though there was a mix shift from Marshals to ICE in shared facilities. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Strong Financial Performance Driven by Facility Activations Facility Sales Demonstrate Underlying Value in PortfolioBoard of Directors expands share repurchase authorization by $500 Million BRENTWOOD, Tenn., Aug. 05, 2026 (GLOBE NEWSWIRE) -- CoreCivic, Inc. (NYSE:  CXW) (CoreCivic or the Company) announced today its second quarter 2026 financial results. Financial Highlights – Second Quarter 2026 Patrick Swindle, CoreCivic's President and Chief Executive Officer, commented, "Building upon the strength of a successful start to 2026, the second quarter financial results exceeded our expectations, driven by lower operating costs and slightly higher populations from U.S. Immigration and Customs Enforcement (ICE).  While we are pleased with our financial performance compared with the prior year quarter, recall that the prior year quarter included the benefit of $11.6 million, or $0.08 per share, of Employee Retention Credits, along with interest thereon, available under the CARES Act, so our earnings would have reflected more pronounced growth after taking into consideration this benefit." Swindle continued, "We ended the quarter with leverage, measured as net debt to Adjusted EBITDA, at 2.9x for the trailing twelve months.  Subsequent to quarter-end, we sold four of our detention facilities to our federal government partner for total gross proceeds of $2.2 billion, or $307,000 per bed, demonstrating the value of our real estate portfolio.  The sale of these facilities substantially strengthens our balance sheet and provides us significant flexibility with our capital allocation strategy and growth plans.  Further, the board's decision to further expand the share repurchase authorization underscores our commitment to disciplined capital allocation and reflects confidence in our ability to generate long-term shareholder value." Second Quarter 2026 Financial Results Compared With Second Quarter 2025 Net income in the second quarter of 2026 was $37.1 million, or $0.37 per diluted share, compared with net income in the second quarter of 2025 of $38.5 million, or $0.35 per diluted share (Diluted EPS).  When adjusted for special items, which consisted of expenses associated with mergers and acquisitions and the associated income tax benefit in both periods, Adjusted Net Income was $37.7 million, or $0.38 per diluted share (Adjusted Diluted EPS), compared with Adjusted Net Income in the second quarter of 2025 of $39.7 million, or $0.36 per diluted share.  Expenses associated with mergers and acquisitions of $0.7 million and $1.5 million during the second quarters of 2026 and 2025, respectively, are included in general and administrative expenses.  Special items are presented in detail in the calculation of Adjusted Net Income and Adjusted Diluted EPS in the Supplemental Financial Information following the financial statements presented herein. The increases in Diluted EPS and Adjusted Diluted EPS compared with the prior year quarter resulted from activations of previously idle facilities resulting from new contract awards at the 2,400-bed Dilley Immigration Processing Center (Dilley Facility), our 600-bed West Tennessee Detention Facility (West Tennessee Facility), the 2,560-bed California City Detention Facility (California City Facility), our 2,160-bed Diamondback Correctional Facility (Diamondback Facility), and the 1,033-bed Midwest Regional Reception Center (Midwest Facility).  Increases in Diluted EPS and Adjusted Diluted EPS also resulted from higher federal and state populations, the acquisition of the Farmville Detention Center on July 1, 2025, the acquisition of Clinical Solutions Pharmacy (CSP) on April 1, 2026, and an 8.9% reduction in weighted average diluted shares outstanding.  The year-over-year increases in Diluted EPS and Adjusted Diluted EPS would be even more pronounced if the comparative second quarter 2025 financial results did not include the nonrecurring benefit of $11.6 million of Employee Retention Credits (ERCs) available under the CARES Act and interest earned thereon.  Occupancy levels in our Residential segment increased to 78.4% in the second quarter of 2026 compared with 76.8% in the second quarter of 2025. The solutions we provide to our federal customers, including primarily ICE and the U.S Marshals Service (USMS) continue to be a significant component of our business.  The federal customers in our Residential segment generated approximately 53% of our total revenue for both the three months ended June 30, 2026 and 2025, increasing $78.2 million, or 27.2%, during the three months ended June 30, 2026 as compared with the same period in 2025.  The increase in federal revenue was primarily a result of increased occupancy at certain facilities, particularly those where we have contracts with ICE, and per diem increases. Operating margins in the CoreCivic Residential segment decreased to 22.4% from 26.1% in the prior year quarter primarily due to $8.2 million of ERCs, excluding interest, reflected in the second quarter of 2025, and by a decline in ICE populations in our care at facilities other than those we recently activated.  Operating margins in the CoreCivic Residential segment were positively impacted during the three months ended June 30, 2026 by the activations of the previously idled California City Facility, our West Tennessee Facility, our Diamondback Facility, and the Midwest Facility.  While these four facilities continue to be in various stages of activation, they generated operating income of $21.1 million during the three months ended June 30, 2026, in the aggregate.  We anticipate these facilities will continue to contribute to an increase in operating margins in future quarters as we expect the occupancy at these facilities to continue to increase.  Total revenue at these four facilities was $80.1 million during the three months ended June 30, 2026.  We expect the activation of the 1,600-bed Prairie Correctional Facility (Prairie Facility), as further described hereinafter, to negatively impact margins during the second half of 2026 as we hire staff and incur expenses to prepare to receive detainees. Earnings before interest, taxes, depreciation and amortization (EBITDA) was $108.7 million in the second quarter of 2026, compared with $101.8 million in the second quarter of 2025.  Adjusted EBITDA, which excludes special items, was $109.4 million in the second quarter of 2026, compared with $103.3 million in the second quarter of 2025.  The increase in EBITDA and Adjusted EBITDA was primarily driven by the activation of five previously idle facilities, the acquisition of the Farmville Detention Center and CSP, partially offset by an increase in general and administrative expenses.  Similar to our per share increases, EBITDA and Adjusted EBITDA would have been more pronounced if the comparative second quarter 2025 financial results did not include the nonrecurring benefit of $11.6 million of ERCs and interest earned thereon. Funds From Operations (FFO) for the second quarter of 2026 was $62.9 million, or $0.63 per diluted share, compared with $63.5 million, or $0.58 per diluted share, in the second quarter of 2025.  Normalized FFO, which excludes special items, was $63.5 million, or $0.64 per diluted share, in the second quarter of 2026, compared with $64.6 million, or $0.59 per diluted share, in the second quarter of 2025.  Normalized FFO per share was positively impacted by the same factors that affected Adjusted EBITDA, as well as a reduction in weighted average diluted shares outstanding compared with the prior year quarter, partially offset by an increase in interest expense, which is not reflected in Adjusted EBITDA. Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO, and, where appropriate, their corresponding per share amounts, are measures calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles (GAAP).  Please refer to the Supplemental Financial Information and the note following the financial statements herein for further discussion and reconciliations of these measures to net income, the most directly comparable GAAP measure. Facility Sales & Continuing Management Subsequent to quarter-end, we completed the sales on July 2, 2026 of our California City Facility and our 1,994-bed Otay Mesa Detention Center (Otay Mesa Facility), both located in California. On August 4, 2026, after announcing a new management contract with ICE to activate the Prairie Facility as further described hereafter, we completed the sales of our Prairie Facility and our Midwest Facility.  The gross sales price for these four facility sales totals $2.2 billion, resulting in an aggregate gain on sale of approximately $1.8 billion to be reported in the third quarter of 2026.  After federal and state income taxes of approximately $0.5 billion and transaction costs, we anticipate our net proceeds from the facility sales to be approximately $1.6 billion.  All of these facilities were sold to the United States of America and its assigns, by and through the Department of Homeland Security. We currently expect to continue to manage these four facilities under existing management contracts with ICE, although the terms of the management contracts may be modified to reflect the change in ownership.  However, since all of our contracts with ICE provide it with the ability to terminate our contracts for non-appropriation of funds or for convenience, we can provide no assurance that we will continue to manage these facilities in the future, or that the terms of the management agreements will remain the same.  The management contract for the California City Facility expires in August 2027, the management contract for the Otay Mesa Facility expires in December 2029 and contains a five-year extension option, the management contract for the Midwest Facility expires in September 2027, and the management contract for the Prairie Facility expires in August 2031. In addition to the facility sales completed to-date, we have recently begun discussions with ICE about the potential acquisition of additional detention facilities from us.  These discussions are in preliminary stages, and we can provide no assurance that any additional sales will occur. Capital Strategy Share Repurchases.  On August 4, 2026 the board of directors (BOD) authorized an increase to our existing share repurchase program pursuant to which CoreCivic may purchase up to an additional $500.0 million in shares of CoreCivic's outstanding common stock.  As a result of the increase, the aggregate authorization under CoreCivic's repurchase program increased from $700.0 million shares of common stock to up to $1.2 billion shares of common stock.  Since the share repurchase program was authorized in May 2022, we have repurchased a total of 28.1 million shares at an aggregate cost of $444.2 million, or $15.82 per share, excluding fees, commissions and other costs related to the repurchases.  We did not repurchase any shares during the second quarter of 2026. Including the increased authorization, we have $755.8 million remaining under the share repurchase program. Additional repurchases of common stock will be made in accordance with applicable securities laws and may be made at management’s discretion within parameters set by the BOD from time to time in the open market, through privately negotiated transactions, accelerated share repurchases or otherwise, subject to restricted payment limitations in our debt agreements. The share repurchase program currently has no time limit and does not obligate us to purchase any particular amount of our common stock. The authorization for the share repurchase program may be terminated, suspended, increased or decreased by the BOD in its discretion at any time. Debt Repayments.  A portion of the net proceeds from the sales of our California City Facility and our Otay Mesa Facility amounting to $1.1 billion after estimated federal and state income taxes and transaction costs, was used to pay down portions of our Bank Credit Facility, including all of the $270.0 million outstanding on the Revolving Credit Facility, which has a borrowing capacity of $575.0 million and can be redrawn, and the $100.0 million outstanding balance of the Incremental Term Loan.  The Incremental Term Loan was scheduled to expire on April 10, 2027.  Additionally, on July 13, 2026, we delivered an irrevocable notice to the holders of all of our previously issued $250.0 million original aggregate principal amount of 4.75% senior notes due 2027 (2027 Notes) that we have elected to redeem in full the 2027 Notes that remain outstanding on August 12, 2026 (Redemption Date). The 2027 Notes were otherwise scheduled to mature on October 15, 2027. The 2027 Notes will be redeemed at a redemption price equal to 100.00% of the principal amount of the then outstanding 2027 Notes, plus the applicable “make-whole” premium specified in the indenture, as supplemented, governing the 2027 Senior Notes, plus accrued and unpaid interest to, but not including, the Redemption Date.  The principal amount of the outstanding 2027 Notes is currently $238.5 million.  Following these debt repayments, the Company's total debt outstanding is expected to be approximately $739.1 million. Other Business Developments Activation of the Prairie Facility.  On August 3, 2026, we were awarded a new management contract with ICE to utilize the Prairie Facility, a facility that has been idle since 2010. The new contract commences on August 11, 2026, for a term of five years.  The agreement provides for a fixed monthly payment plus an incremental per diem payment based on detainee populations.  Taking into account start-up activities and the phased commencement of intake operations, we currently expect an immaterial impact to earnings for the remainder of 2026.  Once the facility is fully activated, we expect this facility to generate total annual revenue of approximately $75 million.  We expect to begin receiving detainees in the fourth quarter of 2026, with the activation estimated to be complete in the second quarter of 2027. Acquisition of Clinical Solutions Pharmacy.  As we disclosed last quarter, on April 1, 2026, we completed the acquisition of CSP, one of the largest providers of mail order pharmacy services to correctional facilities in the United States, serving over 600 correctional facilities, including correctional facilities owned or operated by CoreCivic, across 32 states.  The aggregate purchase price of $199.8 million includes an estimated earn-out and the acquisition of working capital accounts, but excludes $3.1 million of transaction-related expenses incurred through June 30, 2026.  The initial purchase price of $148.0 million, excluding the earn-out, was funded with cash on hand and borrowings under the Revolving Credit Facility.  The earn-out, which is based on specified financial targets in 2026, was estimated at fair value of $51.8 million at June 30, 2026, and will be remeasured at fair value each reporting period until settled in cash, expected in the first half of 2027. Redefining Operating & Reportable Segments.  As a result of the acquisition of CSP and to better reflect our operational strategy, beginning in the second quarter of 2026, we changed our reporting segments to align our financial reporting with the manner in which we manage our businesses.  As a result, we redefined our operating and reportable segments as follows: CoreCivic Residential segment, consisting of the 64 correctional, detention, and reentry facilities we manage, 60 of which we owned or controlled via a long-term lease as of June 30, 2026, and four of which were owned by third parties, with a design capacity of 72,000 beds.  As previously mentioned, subsequent to quarter-end, we sold four detention facilities we owned, although we continue to manage these facilities. CoreCivic Services segment, representing the delivery of complementary services to the corrections industry through our wholly-owned subsidiaries, including CSP, TransCor America, LLC (TransCor), and Recovery Monitoring Solutions (RMS).  TransCor provides transportation services to governmental agencies and CoreCivic, while RMS provides electronic monitoring and case management services as alternatives to incarceration; and CoreCivic Properties segment, consisting of the five correctional real estate properties held for lease to government agencies, with a total design capacity of approximately 8,000 beds. 2026 Financial Guidance Based on current business conditions, we are providing the following updated financial guidance for the full year 2026: The updated guidance reflects our best estimate of the financial impact of the four facility sales, and our expected continued management of these facilities.  Although we and ICE have not yet modified the management contracts for these facilities to reflect the change in ownership, the range of our guidance incorporates our best estimate of the financial impact of the change in ownership. The updated guidance for Net income and Diluted EPS were most notably impacted by the gain on sale of the four facilities sold, which will be reported in the third quarter of 2026, and by the repayment of $608.5 million of debt, with a portion of proceeds from the facility sales, including $238.5 million of the 2027 Notes that will be repaid on August 12, 2026.  Adjusted Net Income, FFO, and EBITDA, which exclude the after-tax impact of the gain, were each favorably impacted by interest income associated with the residual cash balance after the repayment of debt, resulting from the facility sales.  Unlike Net Income and FFO, EBITDA excludes the benefit of the reduction in interest expense resulting from the repayment of debt. Our updated guidance does not include the impact of any share repurchases we may execute during the second half of 2026, which could negatively impact Net Income, FFO, and EBITDA for a reduction in interest income associated with any cash used to repurchase shares, but could favorably impact their corresponding per share measures for the reduction in our weighted average shares outstanding. In addition to the financial impact associated with the facility sales, our updated guidance reflects modestly higher residential populations compared with our previous forecast based on recent trends, and includes an increase in general and administrative expenses for higher incentive compensation associated with the facility sales.  Although the updated guidance includes the new management contract at the Prairie Facility, taking into account start-up activities and a phased commencement of intake operations at the facility, the updated guidance reflects an immaterial impact to earnings for the remainder of 2026. In addition to the facility sales completed to-date, we have recently begun discussions with ICE about the potential acquisition of additional detention facilities from us.  These discussions are in preliminary stages, and we can provide no assurance that any additional facility sales will occur.  Our updated guidance does not include the impact of any potential additional facility sales. During 2026, we expect to invest $30.0 million to $35.0 million in maintenance capital expenditures on real estate assets, $35.0 million to $40.0 million for maintenance capital expenditures on other assets and information technology, and $15.0 million for other capital investments.  We also expect to invest $35.0 million to $40.0 million for capital expenditures associated with previously idled facilities we are activating and for additional potential facility activations, in order to prepare these facilities to quickly accept residential populations if opportunities arise. Supplemental Financial Information and Investor Presentations We have made available on our website supplemental financial information and other data for the second quarter of 2026.  Interested parties may access this information through our website at http://ir.corecivic.com/ under “Financial Information” of the Investors section.  We do not undertake any obligation and disclaim any duties to update any of the information disclosed in this report. Management may meet with investors from time to time during the second quarter of 2026.  Written materials used in the investor presentations will also be available on our website beginning on or about August 24, 2026.  Interested parties may access this information through our website at http://ir.corecivic.com/ under “Events & Presentations” of the Investors section. Conference Call, Webcast and Replay Information We will host a webcast conference call at 10:00 a.m. central time (11:00 a.m. eastern time) on Thursday, August 6, 2026, which will be accessible through the Company's website at www.corecivic.com under the “Events & Presentations” section of the "Investors" page. To participate via telephone and join the call live, please register in advance here https://register-conf.media-server.com/register/BI99959d3b30da46f3a101e52cd0e2654d.  Upon registration, telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number and a unique passcode. About CoreCivic CoreCivic is a diversified, government-solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that help build safer, healthier, and more productive communities one person at a time through residential corrections, detention, and reentry management, complementary service offerings to the corrections industry that include pharmaceutical, transportation, and alternatives to incarceration, and government real estate solutions. We are the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and one of the largest operators of such facilities in the United States. We have been a flexible and dependable partner for government for more than 40 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. Learn more at www.corecivic.com. Forward-Looking Statements This press release contains statements as to our beliefs and expectations of the outcome of future events that are "forward-looking" statements as defined within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include, but are not limited to, the risks and uncertainties associated with: (i) changes in government policy, legislation and regulations that affect utilization of the private sector for corrections, detention, and residential reentry services, in general, or our business, in particular, including, but not limited to, the continued utilization of our correctional and detention facilities by the federal government as a consequence of presidential executive orders, changes in how the federal government, including ICE, elects to use our detention capacity or otherwise procures alternative detention capacity, and the impact of any changes to immigration reform and sentencing laws (we do not, under longstanding policy, lobby for or against policies or legislation that would determine the basis for, or duration of, an individual’s incarceration or detention); (ii) our ability to obtain and maintain correctional, detention, and residential reentry facility management contracts because of reasons including, but not limited to, sufficient governmental appropriations, contract compliance, negative publicity and effects of inmate disturbances; (iii) changes in the privatization of the corrections and detention industry, the acceptance of our services, the timing of the opening of new facilities and the commencement of new management contracts (including the extent and pace at which new contracts are utilized), as well as our ability to utilize available beds; (iv) our ability to successfully activate idle facilities in a timely manner in order to meet the growth in demand for our facilities and services from the federal government that has occurred as a result of changes in policies and actions of the current presidential administration, and to realize projected returns resulting therefrom; (v) general economic and market conditions, including, but not limited to, the impact governmental budgets can have on our contract renewals and renegotiations, per diem rates, and occupancy; (vi) fluctuations in our operating results because of, among other things, changes in occupancy levels; competition; contract renegotiations or terminations including as a result of a change in facility ownership; inflation and other increases in costs of operations, including a rise in labor costs; fluctuations in interest rates and risks of operations; (vii) government budget uncertainty, the impact of debt ceilings and government shutdowns, including partial shutdowns, and changing budget priorities; (viii) our ability to successfully identify and consummate future development and acquisition opportunities, integrate their operations, and realize projected returns resulting therefrom; (ix) the availability of debt and equity financing on terms that are favorable to us, or at all; and (x) our ability to successfully consummate the sales of additional company-owned assets, including the potential sale of additional facilities to ICE, on a timely basis and on commercially favorable terms.  Other factors that could cause operating and financial results to differ are described in the filings we make from time to time with the Securities and Exchange Commission. We take no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to this press release or the information contained herein by any third-parties, including, but not limited to, any wire or internet services, except as may be required by law. CALCULATION OF EBITDA AND ADJUSTED EBITDA NOTE TO SUPPLEMENTAL FINANCIAL INFORMATION Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO, and, where appropriate, their corresponding per share metrics are non-GAAP financial measures.  The Company believes that these measures are important operating measures that supplement discussion and analysis of the Company's results of operations and are used to review and assess operating performance of the Company and its properties and their management teams. The Company believes that it is useful to provide investors, security analysts, and other interested parties disclosures of its results of operations on the same basis that is used by management. FFO, in particular, is a widely accepted non-GAAP supplemental measure of performance of real estate companies, grounded in the standards for FFO established by the National Association of Real Estate Investment Trusts (NAREIT).  NAREIT defines FFO as net income computed in accordance with GAAP, excluding gains (or losses) from sales of property and extraordinary items, plus depreciation and amortization of real estate and impairment of depreciable real estate and after adjustments for unconsolidated partnerships and joint ventures calculated to reflect funds from operations on the same basis.  As a company with extensive real estate holdings, we believe FFO and FFO per share are important supplemental measures of our operating performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of REITs and other real estate operating companies, many of which present FFO and FFO per share when reporting results.  EBITDA, Adjusted EBITDA, and FFO are useful as supplemental measures of performance of the Company's properties because such measures do not take into account depreciation and amortization, or with respect to EBITDA, the impact of the Company's tax provisions and financing strategies. Because the historical cost accounting convention used for real estate assets requires depreciation (except on land), this accounting presentation assumes that the value of real estate assets diminishes at a level rate over time.  Because of the unique structure, design and use of the Company's properties, management believes that assessing performance of the Company's properties without the impact of depreciation or amortization is useful.  The Company may make adjustments to FFO from time to time for certain other income and expenses that it considers non-recurring, infrequent or unusual, even though such items may require cash settlement, because such items do not reflect a necessary or ordinary component of the ongoing operations of the Company.  Normalized FFO excludes the effects of such items.  The Company calculates Adjusted Net Income by adding to GAAP Net Income expenses associated with the Company’s debt repayments and refinancing transactions, and certain impairments and other charges that the Company believes are unusual or non-recurring to provide an alternative measure of comparing operating performance for the periods presented. Other companies may calculate Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO differently than the Company does, or adjust for other items, and therefore comparability may be limited.  Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO and, where appropriate, their corresponding per share measures are not measures of performance under GAAP, and should not be considered as an alternative to cash flows from operating activities, a measure of liquidity or an alternative to net income as indicators of the Company's operating performance or any other measure of performance derived in accordance with GAAP.  This data should be read in conjunction with the Company's consolidated financial statements and related notes included in its filings with the Securities and Exchange Commission.

CoreCivic has followed the market’s trajectory closely, rising in tandem with the S&P 500 over the past six months. The stock has climbed by 15.8% to $21.17 per share while the index has gained 11%. Is now the time to buy CoreCivic, or should you be careful about including it in your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free. We’re sitting this one out for now. Here are three reasons why there are better opportunities than CXW, plus one stock we’d rather own. A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, CoreCivic grew its sales at a mediocre 4.6% compounded annual growth rate. This fell short of our benchmark for the business services sector. Adjusted operating margin is a key measure of profitability. Think of it as net income (the bottom line) excluding the impact of non-recurring expenses, taxes, and interest on debt - metrics less connected to business fundamentals. Analyzing the trend in its profitability, CoreCivic’s adjusted operating margin decreased by 3.2 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Its adjusted operating margin for the trailing 12 months was 10.3%. Free cash flow isn’t a prominently featured metric in company financials and earnings releases, but we think it’s telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. As you can see below, CoreCivic’s margin dropped by 6.6 percentage points over the last five years. If its declines continue, it could signal increasing investment needs and capital intensity. CoreCivic’s free cash flow margin for the trailing 12 months was breakeven. CoreCivic isn’t a terrible business, but it isn’t one of our picks. That said, the stock currently trades at $21.17 per share (or a forward price-to-sales ratio of 0.8×). The market typically values companies like CoreCivic based on their anticipated profits for the next 12 months, but there aren’t enough published estimates to arrive at a reliable number. You should avoid this stock for now - better opportunities lie elsewhere. We’d suggest looking at a dominant aerospace business that has perfected its M&A strategy. ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

CoreCivic’s first quarter performance reflected strong demand from federal partners, especially U.S. Immigration and Customs Enforcement (ICE), and the successful activation of previously idle facilities. Management credited a 48% increase in revenue from federal partners to higher ICE populations and new contracts, as well as the acquisition of the Farmville Detention Center. CEO Patrick Swindle highlighted that “the average daily population across all of the facilities we manage was 57,243 individuals during the first quarter,” up from the prior year, citing both increased demand and new contracts as key contributors. The quarter also saw continued focus on operational efficiency and capital deployment strategies. Is now the time to buy CXW? Find out in our full research report (it’s free). Revenue: $614.7 million vs analyst estimates of $603.4 million (25.8% year-on-year growth, 1.9% beat) Adjusted EPS: $0.40 vs analyst estimates of $0.30 (35.6% beat) Adjusted EBITDA: $110.1 million vs analyst estimates of $96.75 million (17.9% margin, 13.8% beat) Adjusted EPS guidance for the full year is $1.58 at the midpoint, missing analyst estimates by 2% EBITDA guidance for the full year is $455.3 million at the midpoint, above analyst estimates of $446.2 million Operating Margin: 11.4%, up from 9.7% in the same quarter last year Market Capitalization: $1.94 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Raj Sharma (Texas Capital) asked about facility sales to ICE and how CoreCivic would value such transactions. CEO Patrick Swindle explained that there are no direct market comparables, so valuation would be based on depreciated replacement cost, and that future sales would likely include a management contract. Gregory Thomas Gibas (Northland Securities) inquired about the financial run rate for Q2 and the impact of the CSP acquisition. CFO David Garfinkle projected a sequential dip due to lower ICE populations, with recovery expected as CSP ramps up and facility occupancy improves in the second half. Benjamin Briggs (Stonex Financial Inc.) questioned the strategy for future acquisitions. Swindle replied that any acquisition would need to be attractively valued relative to share repurchases, emphasizing current priority on buybacks but openness to adjacent growth opportunities. Marla Marin (Zacks) asked about cross-selling and market share for CSP. Swindle confirmed that CSP’s market share is under 10% and sees significant runway for growth, including consolidation and outsourcing by correctional clients. Kirk Ludtke (Imperial Capital) pressed on the feasibility and timeline of ICE’s warehouse conversion strategy. Swindle described these projects as complex and lengthy, noting CoreCivic’s strength lies in traditional facility management and readiness to scale conventional bed capacity. In the coming quarters, the StockStory team will be monitoring (1) trends in ICE detention populations and the pace of any rebound following recent declines, (2) integration progress and revenue contribution from Clinical Solutions Pharmacy, and (3) the timing and scale of new state and federal contract awards or facility activations. The evolution of ICE’s asset ownership strategy and the ability to quickly deploy idle capacity will also be important indicators of CoreCivic’s execution and future growth potential. CoreCivic currently trades at $19.66, down from $21.17 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week - FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.