CoreCivic (CXW) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 28.2% YoY to $744.1 million; adjusted EPS reached $0.49, up 104%, and adjusted EBITDA was $117.8 million, up 32.6%.

• Four facility sales generated $2.206 billion gross proceeds, $1.6 billion net proceeds and a $1.771 billion gain; proceeds funded debt repayment and a $500 million ASR.

• FY 2026 adjusted EPS guidance increased to $1.74-$1.80 and adjusted EBITDA guidance to $442.5-$445.5 million.

Financial highlights

• Net income was $1,344.1 million, or $14.49 per diluted share, versus $26.3 million, or $0.24, in Q3 2025; facility-sale gains and other special items drove the increase.

• Adjusted EPS was $0.49 versus $0.24; adjusted net income was $45.7 million. Normalized FFO was $69.9 million, or $0.75 per share, versus $52.1 million, or $0.48.

• Q3 operating expenses rose to $586.9 million from $449.6 million, reflecting higher staffing, activation costs and the CSP acquisition.

• Q3 net interest expense declined to $7.0 million from $16.6 million, benefiting from lower average debt and higher cash balances after facility sales.

• Federal revenue increased 22.2% YoY; federal partners represented 53% of total revenue. ICE revenue rose $75.2 million, while U.S. Marshals revenue declined $5.2 million.

Outlook and guidance

• FY 2026 guidance includes diluted EPS of $15.42-$15.48, adjusted diluted EPS of $1.74-$1.80, normalized FFO per share of $2.78-$2.85 and adjusted EBITDA of $442.5-$445.5 million.

• 2026 AFFO is projected at $260.3-$272.3 million; maintenance capex is $65-$75 million and activation capex is $35-$40 million.

• Average compensated population and Residential revenue are expected to increase in Q4, driven by recently activated ICE contracts; Appleton intake is expected in Q4 2026, with activation complete in Q2 2027.

• Appleton is expected to generate ~$75 million in annual revenue at full activation, with margins pressured until stabilized occupancy; its 2026 earnings impact is expected to be immaterial.

• Preliminary 2027 adjusted EBITDA planning range was $436-$450 million, including an estimated ~$10 million Prairie contribution; formal guidance is expected in February.