CoreCivic (CXW) investor relations material

Executive summary

• Q2 2026 revenue rose 27.3% year-over-year to $684.9 million, with net income of $37.1 million and diluted EPS of $0.37, up from $0.35 in Q2 2025, driven by facility activations and higher ICE populations.

• Major asset sales post-quarter generated $1.6 billion to $2.2 billion in gross proceeds, significantly enhancing liquidity and enabling substantial debt repayment and capital flexibility.

• Share repurchase authorization expanded by $500 million to $1.2 billion, with $755.8 million capacity remaining.

• Operational performance exceeded analyst estimates for adjusted EPS and EBITDA despite lower ICE enforcement activity and population declines in Q2.

• Segment reporting redefined into Residential, Services, and Properties to better align with business management.

Financial highlights

• Adjusted EBITDA for Q2 2026 was $109.4 million, up 5.9% year-over-year; adjusted EPS was $0.38, and normalized FFO per share rose to $0.64.

• Operating income for Q2 2026 was $68.1 million; net operating income for the first half was $295.98 million, up from $253.66 million year-over-year.

• Revenue from federal partners increased 27.2% year-over-year; ICE revenue up 51.6%, while U.S. Marshals revenue declined.

• Weighted average diluted shares outstanding decreased 8.9% due to share repurchases.

• Cash and cash equivalents stood at $108.9 million at quarter-end.

Outlook and guidance

• Full-year 2026 adjusted diluted EPS guidance raised to $1.62–$1.70; normalized FFO per share to $2.61–$2.70; adjusted EBITDA expected at $440.5–$445.5 million.

• Guidance incorporates continued management of sold facilities, modestly higher residential populations, and best estimates for contract modifications.

• Maintenance CapEx forecasted at $65–$75 million; AFFO expected at $257.5–$271.5 million.

• Guidance does not include potential additional facility sales or share repurchases in the second half of 2026.

• Capital expenditures for 2026 projected at $30–$35 million for real estate maintenance, $35–$40 million for other assets, and $35–$40 million for facility activations.