CoreCivic (CXW) Q4 2025 earnings summary

Executive summary

• Achieved significant operational and financial growth in Q4 2025, with revenue reaching $604.0 million, up 26% year-over-year, and net income of $26.5 million, driven by new contract activations and increased demand from federal partners, especially ICE, with record-high detainee populations.

• Full year 2025 revenue was $2.2 billion, up 13% year-over-year, with net income of $116.5 million, diluted EPS of $1.08, and adjusted EBITDA of $365.6 million, up 11% from 2024.

• Growth was driven by the resumption of operations at the Dilley Facility, acquisition of the Farmville Detention Center, and increased federal and state populations.

• Full activation of key facilities and new contracts contributed to higher occupancy and average daily population, with the company managing 56,380 individuals in Q4 2025, up from 50,202 a year ago.

• Fourth quarter results exceeded internal projections for Adjusted EPS, Normalized FFO per share, and Adjusted EBITDA.

Financial highlights

• Q4 2025 GAAP EPS was $0.26; Adjusted EPS was $0.27, up 69% year-over-year.

• Normalized FFO per share was $0.52, up 33% year-over-year.

• Adjusted EBITDA reached $92.5 million, a 25% increase from Q4 2024.

• Adjusted EPS and EBITDA exceeded analyst estimates by $0.09 and $9 million, respectively.

• Facility operating margins in Safety and Community segments decreased to 22.2% in Q4 2025 from 23.6% in Q4 2024 due to start-up expenses at newly activated facilities.

Outlook and guidance

• 2026 guidance: Diluted EPS of $1.49–$1.59, FFO per share of $2.54–$2.64, and EBITDA of $437–$445 million.

• 2026 net income guidance: $147.5 million to $157.5 million.

• Guidance excludes potential upside from the Midwest Regional facility, unannounced contracts, and major changes in federal government usage.

• Annual revenue run rate expected to reach $2.5 billion and EBITDA run rate $450 million by mid-2026, excluding Midwest Regional.

• Capital expenditures for 2026 expected to total $110–$125 million, including $60–$70 million for maintenance and $35–$40 million for facility activations.