CoreCivic sells prisons, lifts profit outlook
The operator raised its 2026 adjusted EBITDA forecast to as much as $461.8 million after asset sales.
The private-prison operator CoreCivic (CXW) reported first-quarter net income that rose 51% from a year earlier and raised its full-year earnings guidance after selling two large detention centers and activating a delayed facility. The company said the asset sales generated $1.1 billion in net proceeds, which it plans to use to reduce debt and fund share repurchases.
The results marked an acceleration in profitability despite the absence of gains from the California City and Otay Mesa sales. Revenue grew 25.8% to $614.7 million, while adjusted EBITDA climbed 36% to $110.1 million, both outpacing the prior quarter’s growth rates. The company attributed the improvement to higher occupancy and the activation of the Midwest Regional Reception Center, which had been delayed by legal challenges.
CoreCivic posted net income of $37.9 million, or $0.38 a share, up from $25.1 million, or $0.23 a share, a year earlier. Adjusted earnings per share rose 73.9% to $0.40, exceeding the 69% growth reported in the prior quarter. The company’s Safety and Community segments saw operating margins expand to 24.0% from 22.2% sequentially, as start-up costs for newly activated facilities declined.
Revenue from U.S. Immigration and Customs Enforcement, CoreCivic’s largest government partner, grew 96.2% to $261.3 million, though the pace of growth slowed slightly from the prior quarter. Occupancy across the company’s facilities rose to 79.6% from 78.1% in the prior quarter, reflecting continued improvement in utilization.
In April, CoreCivic acquired Clinical Solutions Pharmacy for $148 million, a move expected to add $0.03 to $0.05 per share to 2026 earnings. The company also activated the Midwest Regional Reception Center in March, which is projected to contribute $0.05 to $0.06 per share for the remainder of the year.
CoreCivic raised its 2026 adjusted EBITDA guidance to a range of $453.8 million to $461.8 million, up from $437.0 million to $445.0 million previously. Net income guidance was lifted to $147.8 million to $157.8 million from $147.5 million to $157.5 million. The company said the revisions reflect the impact of the pharmacy acquisition and facility activations.
The company plans to use proceeds from the asset sales to repay $716.3 million in debt, including portions of its revolving credit facility, term loans, and senior notes. CoreCivic also repurchased 2.3 million shares for $44.7 million in the quarter, slowing from $97.3 million in the prior quarter but maintaining an active buyback program.