CoreCivic Lifts Adjusted EPS Outlook, Adds $500 Million To Buyback After $2.2 Billion Facility Sale

CoreCivic, which runs correctional, detention and residential reentry facilities for government agencies, raised its full-year adjusted earnings-per-share guidance to $1.74 to $1.80 and added $500 million to its share buyback authorization, according to an 8-K filed Wednesday. The moves followed the $2.2 billion sale of four detention facilities to the federal government.

A $1.8 billion gain, and a lower headline outlook

The four facilities hold 7,187 beds. The sales produced a net gain of $1,770.7 million, pushing third-quarter net income to $1,344.1 million, or $14.49 per diluted share, against $26.3 million, or $0.24, a year earlier.

Stripping out special items, adjusted earnings were $0.49 per diluted share, up 104.2%, on revenue of $744.1 million, up 28.2%. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, adjusted) rose 32.6% to $117.8 million.

The new full-year outlook cuts both ways. Adjusted diluted EPS guidance moved to $1.74 to $1.80 from $1.64 to $1.73, but diluted EPS guidance fell to $15.42 to $15.48 from $15.62 to $15.82, and net income guidance dropped to $1.461 billion to $1.467 billion from $1.492 billion to $1.511 billion.

ICE demand drives the operating results

CEO Lucibeth Mayberry attributed the quarter to higher demand from U.S. Immigration and Customs Enforcement, including more use of recently activated facilities. Occupancy rose to 84.0% from 76.7% a year earlier. Four previously idle facilities (West Tennessee, California City, Diamondback and Midwest) are expected to generate about $320.0 million in annual revenue once fully activated, and generated $19.9 million in net operating income in the quarter.

Federal customers made up 53% of total revenue in the quarter, compared with 55% a year earlier. CoreCivic also signed a five-year ICE contract to activate the 1,600-bed Appleton Detention Facility, which it expects to produce about $75.0 million in annual revenue when fully active. Intake is expected to begin in the fourth quarter, with activation estimated complete in the second quarter of 2027.

Where the sale money went

Net proceeds after taxes and costs were about $1.6 billion. CoreCivic used them to repay over $700 million of debt and to pay $500.0 million under an accelerated share repurchase agreement. Net debt to adjusted EBITDA fell to (0.1)x from 2.5x a year earlier, and total debt stood at $629.6 million at September 30.

Weighted average diluted shares fell 13.8% from a year earlier, a drop the company attributed primarily to its repurchase program, most notably the ASR. The board's November 3 increase lifts the total authorization to $1.7 billion from $1.2 billion, with $755.8 million available.

CoreCivic expects to keep managing the four sold facilities for ICE, though ICE can end those contracts for convenience. Talks with ICE on selling additional facilities are preliminary, and guidance excludes any such sales.

A new CEO mid-quarter

Mayberry became president and CEO on September 24 after Patrick Swindle stepped down for health reasons. Management hosts its earnings call at 11:00 a.m. ET on Thursday.

The company said its strategy is unchanged under Mayberry, who said the sale left the balance sheet with "significant flexibility."

Sources

• 8-K Filing — CoreCivic, Inc. (CXW) — SEC EDGAR
• Exhibit d165428dex991.htm — CoreCivic, Inc. 8-K exhibit — SEC EDGAR
• CoreCivic Reports Third Quarter 2026 Financial Results — globenewswire.com