CoreCivic (CXW) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $580.4 million, up 18.1% year-over-year, driven by increased ICE detainee populations, new facility activations, and higher federal and state populations.

• Net income for Q3 2025 was $26.3 million ($0.24 per diluted share), up 24.7% year-over-year, with adjusted EPS also at $0.24, up 20%.

• Five previously idle facilities were reactivated under new ICE contracts, expected to generate $320–$500 million in annual revenue at stabilized occupancy.

• Acquisition of the Farmville Detention Center for $71.4 million in July 2025 is expected to add $40 million in annual revenue.

• CEO transition announced: Patrick Swindle to succeed Damon Hininger as CEO in January 2026.

Financial highlights

• Q3 2025 adjusted EBITDA: $88.8 million, up 6.6% year-over-year; operating margin: 22.7%; normalized FFO per share: $0.48, up 11.6%.

• Q3 2025 net income: $26.3 million; diluted EPS: $0.24; nine months net income: $90.0 million (+81.5% YoY).

• Revenue from ICE increased 54.6% to $215.9 million; federal partners comprised 55% of Q3 revenue.

• Q3 results exceeded internal forecasts for adjusted EPS, FFO per share, and adjusted EBITDA.

• Average daily residential population in Safety and Community segments grew to 55,236, with occupancy at 76.7%.

Outlook and guidance

• 2025 adjusted EBITDA guidance: $355–$359 million, revised downward due to start-up costs at newly activated facilities.

• Full-year 2025 net income guidance: $107–$113 million, down from prior guidance.

• Capital expenditures for 2025 expected at $97.5–$99.5 million for facility activations, plus $29–$31 million for maintenance.

• Run rate revenue expected to reach $2.5 billion and EBITDA over $450 million by mid-2026.

• Stabilized occupancy at newly reactivated facilities anticipated in Q1–Q2 2026.