CoreCivic (CXW) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered strong financial and operational performance, with revenue of $538.2 million and net income of $38.5 million, driven by record ICE detention populations and increased demand from federal and state partners.

• Major government funding initiatives, including the One Big Beautiful Bill Act and Laken Riley Act, are expected to further boost demand for detention capacity through 2029.

• Multiple facility activations and the $67 million acquisition of Farmville Detention Center were completed or underway, expanding capacity and federal contract exposure.

• Share repurchase authorization increased to $500 million, with 3.9 million shares repurchased in H1 2025 at a cost of $81 million.

• High contract renewal rate (~97%) and long-term government relationships drive stable cash flows.

Financial highlights

• Q2 2025 revenue was $538.2 million, up 9.8% year-over-year; adjusted EBITDA rose 23.2% to $103.3 million.

• Net income for Q2 2025 was $38.5 million, up from $19.0 million in Q2 2024; diluted EPS was $0.35, adjusted diluted EPS $0.36.

• Normalized FFO per share was $0.59, up 40.5% year-over-year; AFFO per share was $0.61.

• Operating margin in safety and community facilities was 26.2%, up from 23.7% a year ago.

• Average daily population managed was 54,026, with occupancy at 76.8%, up from 74.3% year-over-year.

Outlook and guidance

• 2025 adjusted EPS guidance raised to $1.07–$1.14; normalized FFO per share to $1.99–$2.07.

• Adjusted EBITDA guidance increased to $365–$371 million; net income guidance $116.4–$124.4 million.

• Guidance reflects new contracts, facility activations, and the Farmville acquisition; excludes impact of new, unannounced contracts.

• Q4 2025 expected to reflect a run-rate EBITDA of at least $400 million, not including potential new contracts.

• Full-year benefits from new activations expected to be more significant in 2026.