CoreCivic (CXW) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $488.6 million, with net income of $25.1 million and diluted EPS of $0.23, reflecting strong occupancy, new contracts, and improved operating performance.

• Occupancy rose to 77% from 75.2% year-over-year, driven by increased ICE utilization and reactivation of idle facilities.

• Significant contracting activity with ICE and state partners, including reactivation of key facilities and new contracts amid heightened demand for detention services.

• Share repurchases totaled 1.9 million shares at $37.9 million in Q1 2025, with $131 million remaining authorization and 16.5 million shares repurchased since May 2022.

• Largest private owner of correctional real estate in the U.S., managing 39% of all privately managed correctional and detention capacity.

Financial highlights

• Q1 2025 revenue was $488.6 million, net income $25.1 million, and adjusted EBITDA $81.0 million, with diluted EPS of $0.23 and FFO per share of $0.45.

• Adjusted EBITDA surpassed analyst estimates by $10 million but was down year-over-year due to prior contract terminations.

• Excluding terminated contracts, revenue grew 6.7% and adjusted EBITDA rose 21.2% year-over-year.

• Operating margin in safety and community segments was 23.6%, nearly flat year-over-year.

• Revenue mix: ~50% federal, 41% state, 9% other/local partners.

Outlook and guidance

• Raised 2025 guidance: diluted EPS of $0.83–$0.92, FFO per share of $1.72–$1.82, and EBITDA of $331–$339 million.

• Guidance reflects Q1 results, updated occupancy projections, and Dilley facility reactivation; excludes potential new long-term contracts.

• Capital expenditures for 2025 forecasted at $60–$65 million for maintenance and $65–$70 million for facility activations and transportation.

• Occupancy recovery post-COVID-19 and new contracts with ICE and state partners expected to drive earnings and cash flow growth.

• Short-term growth opportunities are strong due to new federal executive actions and the Laken Riley Act, which may require 60,000–110,000 additional ICE detention beds.