CoreCivic (CXW) Noble Capital Markets Emerging Growth Virtual Equity Conference summary

Business overview and segment performance

• Operates in three segments: safety (correctional/detention operations), property (facility leasing), and community (residential reentry/halfway houses).

• Safety segment generates 92% of NOI, with 43 facilities and nearly 65,000 beds; property and community segments contribute 3.1% and 5.2% of NOI, respectively.

• Largest non-government owner of correctional/detention real estate in the U.S., managing 39% of privately managed capacity.

• Federal partners account for 50% of revenue, state partners 41%, and the remainder from local partners.

• Q1 2025 metrics: $488.6M revenue, $25.1M net income, $81M adjusted EBITDA.

Market trends and growth opportunities

• Pandemic led to lower occupancy and revenue dips, but populations are rebounding toward pre-pandemic levels.

• Current average occupancy is 77%, with potential for margin expansion as occupancy rises due to fixed cost leverage.

• Nine idle facilities (13,419 beds) present significant EBITDA growth potential if reactivated, especially with ICE contracts.

• Activating 70% of idle beds could yield $83M in EBITDA; 90% utilization could generate $131M.

• New contracts and letter agreements with ICE and state partners are in progress, with expectations for long-term conversions.

Regulatory and political environment

• Transition from Biden to Trump administration is expected to drive higher detention demand due to stricter immigration enforcement.

• DOGE review of contracts over $20M may delay awards but is seen as favorable due to cost competitiveness.

• Substantial federal funding for border security and detention capacity anticipated post-reconciliation.