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Jun 30
Corecivic Q2 2025 Earnings Report
CoreCivic reported strong financial results for the second quarter of 2025, driven by increased demand from government partners, particularly U.S. Immigration and Customs Enforcement (ICE).
Key Takeaways
CoreCivic delivered a robust second quarter in 2025, with significant increases across key financial metrics including total revenue, net income, and diluted EPS. The strong performance was primarily attributed to higher federal and state populations, increased average per diem rates, and the recognition of employee retention credits. The company also made strategic capital deployments through share repurchases and the acquisition of the Farmville Detention Center, while actively reactivating previously idled facilities to meet growing demand.
Total revenue increased by 9.8% to $538.2 million, reflecting strong demand for services.
Net income surged by 103.4% to $38.5 million, and diluted EPS rose by 105.9% to $0.35.
Adjusted EBITDA grew by 23.2% to $103.3 million, indicating improved operational efficiency.
The company repurchased 2.0 million shares for $43.2 million and acquired the Farmville Detention Center for $67 million, expanding its operational capacity.
Corecivic
Corecivic
Corecivic Revenue by Segment
Corecivic Revenue by Geographic Location
Revenue by Segment
Safety Revenue
CapyFin.comCommunity Revenue
CapyFin.comProperties Revenue
CapyFin.comRevenue by Geographic Location
ICE Revenue
CapyFin.comState Customers Revenue
CapyFin.com Forward Guidance
CoreCivic has raised its full-year 2025 financial guidance, reflecting strong second-quarter results, updated occupancy projections, the acquisition of the Farmville Detention Center, and the expected activation of the California City Immigration Processing Center. The company anticipates further increases in utilization of existing capacity due to substantial government funding and expects new contracts to require the activation of more idle facilities, with full benefits likely impacting 2026 results.
Positive Outlook
- Increased 2025 full-year guidance for Net Income, Adjusted Net Income, Diluted EPS, Adjusted Diluted EPS, FFO per diluted share, Normalized FFO per diluted share, EBITDA, and Adjusted EBITDA.
- Expectation of receiving detainee populations at the California City Immigration Processing Center during Q3 2025.
- Significant government funding levels under the One Big Beautiful Bill Act are expected to drive demand for detention capacity.
- Modified immigration policies and newly enacted legislation are anticipated to increase the utilization of detention for certain criminal violations.
- Anticipated annual incremental revenue of approximately $40.0 million from the acquisition of the Farmville Detention Center.
Challenges Ahead
- Guidance does not include the impact of any new contract awards not previously announced, which could lead to revisions.
- Activation of an idle facility generally requires four to six months, potentially incurring additional expenses before revenue is realized.
- Start-up expenses for idle facility activations could negatively impact guidance until revenue offsets these costs.
- Full-year benefits from idle facility activations are more likely to be impactful to 2026 results rather than 2025.
- The intake process at the Midwest Regional Reception Center has been delayed by a lawsuit, potentially impacting its activation timeline.