CoreCivic (CXW -2.54%), a leading private operator of correctional and detention facilities in the United States, reported results on August 6, 2025. Headline numbers and revised forecasts caught attention: revenue (GAAP) reached $538.2 million, topping the $498.6 million GAAP analyst estimate. Non-GAAP earnings per share were $0.36, well ahead of the $0.20 consensus (Adjusted diluted EPS). Net income (GAAP) doubled to $38.5 million compared to Q2 2024. The period’s growth easily exceeded expectations, as adjusted (non-GAAP) EPS of $0.36 was 80.0% above analyst estimates, driven by higher occupancy and surging federal detention needs, especially from U.S. Immigration and Customs Enforcement (ICE). The financial outlook for FY2025 was also raised. The period delivered strong operational momentum and marked a significant acceleration compared to already solid Q1 2025 results.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.36 | $0.20 | $0.20 | 80.0% |
| Revenue | $538.2 million | $498.65 million | $490.1 million | 9.8% |
| Net Income | $38.5 million | $19.0 million | 102.6% | |
| Adjusted EBITDA | $103.3 million | $83.9 million | 23.2% | |
| Normalized FFO per Diluted Share | $0.59 | $0.42 | 40.5% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Critical Focus Areas
CoreCivic develops, owns, and operates correctional, detention, and reentry facilities. Its revenue comes mainly from contracts with federal, state, and local government agencies, such as ICE, the U.S. Marshals Service, and the Federal Bureau of Prisons. These agreements are generally linked to the number of beds used or managed by these partners.
The company’s main business focus has been on expanding its detention capacity and strengthening contract relationships with key government customers. Crucial drivers include high facility occupancy rates, compliance with regulatory standards, and proactive facility management, such as acquiring or reactivating sites to match rising demand. Its growth depends on government policy, renewal of contracts, and ability to ramp up beds when needed. It maintained a contract renewal rate near 96% over the five years ended December 31, 2024.
Quarter in Review: Drivers, Financials, and Operational Shifts
During the quarter, CoreCivic saw a strong surge in demand, largely due to a nationwide rise in ICE detention populations. Revenue from ICE swelled 17.2% to $176.9 million, far outpacing any other client group. The U.S. Marshals Service, its next largest customer, drove revenue up 2.7% compared to Q2 2024. State contracts also contributed, with state customer revenue rising 5.2%, led by new contracts in Montana. Management pointed out that “Total revenue (GAAP) of $538.2 million, up 9.8% from the prior year quarter”
Occupancy data underpins this performance. The average daily residential population reached 54,026, growing 4.8% from the same period last year. Average occupancy climbed to 76.8% from 74.3% in Q2 2024, with several idle facilities either brought online or in final preparations for activation. Higher occupancy rates translate directly into stronger revenue as the company is paid per bed in use. Still, full utilization remains below peak, giving it room for further volume growth without the need for immediate new construction.
Facility management and expansion were notable during the quarter. In July 2025, CoreCivic acquired the Farmville Detention Center in Virginia (736 beds) for $67.0 million. Management expects the facility to add about $40 million in annual revenue (GAAP). CoreCivic also reactivated three previously idle facilities and launched advanced negotiations for at least a fourth. These moves are capital intensive up front because costs are incurred during activation before facilities are fully filled and generating full revenue.
CoreCivic’s regulatory landscape is also central to its results.
Key Products and Service Lines
The company’s business segments are Safety (correctional/detention facilities), Community (residential reentry and community corrections), and Properties (real estate leases to third parties). Safety, which includes traditional correctional and detention centers, is by far the largest generator of revenue. Community services focus on helping individuals reenter society after incarceration, while the Properties segment covers leasing facilities to third parties.
In addition to core facility operations, CoreCivic is expanding transportation services for government partners and is looking at opportunities to provide non-traditional or rapid deployment detention solutions as federal needs shift. Management described the acquisition of new vehicles and discussions for new service models. These moves, while ancillary, are designed to complement its main facility-management business and respond to changing government needs.
Guidance and What Lies Ahead
Management raised its outlook for FY2025 across all headline metrics. Net income (GAAP) is now projected at $116.4 million to $124.4 million for full year 2025, up from the earlier estimate of $91.3 million to $101.3 million. Full-year adjusted diluted earnings per share is now forecast at $1.07 to $1.14, up from the previous range of $0.83 to $0.92. Normalized funds from operations per share are now estimated at $1.99 to $2.07, and adjusted EBITDA (non-GAAP) is targeted at $365.0 million to $371.0 million. The revised 2025 guidance reflects strong Q2 results, ongoing occupancy gains, activation of new facilities, and the Farmville acquisition. Importantly, management highlighted that its forecasts do not account for new contracts not yet announced, suggesting that actual results could change if further deals are signed in the coming months.
Investors should watch several key factors in upcoming quarters. Continued heavy reliance on ICE and other federal contracts leaves CoreCivic exposed to shifts in government policy or leadership. Facility activation and expansion activities require careful capital management and can weigh on margins if costs rise before occupancy stabilizes. The company’s plan to activate previously idle beds depends on timely government actions and policy continuity. Shareholders should also keep an eye out for changes to the company’s capital allocation strategy, including potential resumption of dividends or additional share repurchases, as conditions evolve. CXW does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
