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Sep 30
Corecivic Q3 2025 Earnings Report
CoreCivic's third quarter 2025 financial results were reported, showing significant revenue and net income growth driven by increased demand from U.S. Immigration and Customs Enforcement (ICE) and successful facility activations.
Key Takeaways
CoreCivic reported a strong third quarter in 2025, with total revenue increasing by 18.1% to $580.4 million and net income rising by 24.7% to $26.3 million. Diluted EPS grew by 26.3% to $0.24, and Adjusted EBITDA increased by 6.6% to $88.8 million. The growth was primarily fueled by higher federal and state populations, particularly from ICE, and the successful activation of several idle facilities.
Total revenue for Q3 2025 reached $580.4 million, an 18.1% increase compared to the prior year quarter.
Net income for the quarter was $26.3 million, marking a 24.7% increase from the third quarter of 2024.
Diluted earnings per share rose by 26.3% to $0.24, while Adjusted diluted earnings per share increased by 20.0% to $0.24.
The company repurchased 1.9 million shares of common stock at an aggregate cost of $40.0 million during the quarter, demonstrating a commitment to shareholder value.
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 revised its full-year 2025 financial guidance, reflecting strong third-quarter results and updated occupancy projections. However, the guidance also incorporates increased start-up expenses related to the activation of four previously idle facilities, which are expected to negatively impact fourth-quarter financial results but drive stronger performance in 2026.
Positive Outlook
- Revised guidance reflects favorable third-quarter results, indicating strong operational performance.
- Updated occupancy projections are consistent with current positive trends, suggesting continued demand for services.
- New contract awards at four facilities (West Tennessee, California City, Midwest Regional Reception Center, Diamondback) are expected to generate approximately $320 million in annual revenue once stabilized.
- The company expects detainee populations to continue to grow as ICE implements its interior enforcement plan, contributing to a strong 2025 and beyond.
- Increased capital expenditures for facility activations indicate preparation for future growth and demand.
Challenges Ahead
- Revised 2025 guidance reflects a reduction in facility net operating income of $10.0 million to $11.0 million due to start-up expenses for activating four facilities.
- Activation of idle facilities generally requires four to six months, leading to additional expenses before revenue realization.
- The intake process at the Midwest Regional Reception Center has been delayed by a lawsuit, impacting its activation timeline.
- The negative impact on financial guidance for the fourth quarter is primarily due to start-up expenses related to new contracts.
- Although new contracts are expected to drive stronger 2026 results, the immediate impact on 2025 guidance is negative due to initial costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income