CoreCivic Expects Increased Demand Under New Administration, Shares Move Lower Following Q4 Earnings

CoreCivic Inc CXW reported fourth-quarter financial results after the market close on Monday. Here’s a look at the key metrics from the quarter.

Q4 Earnings: CoreCivic reported fourth-quarter revenue of $479.3 million, beating analyst estimates of $465.17 million, according to Benzinga Pro. The correctional facility company reported fourth-quarter funds from operations (FFO) of 39 cents per share, beating analyst estimates of 34 cents per share.

Revenue from U.S. Immigration and Customs Enforcement (ICE), the company’s largest government partner, fell 21.6% year-over-year. Excluding the company’s South Texas Family Residential facility, which had its contract terminated last year, ICE revenue increased 5.2% year-over-year.

Earnings per share was also lower on a year-over-year basis, largely due to the expiration of the company’s lease with the California Department of Corrections and Rehabilitation.

CoreCivic noted that it has approved $40 million to $45 million of capital investments related to potential facility activations and transportation services in anticipation of increased demand for its facilities and services under the new administration.

“As the new administration modifies immigration policy and enacts new legislation, we expect the demand for our services to grow,” said Damon Hininger, president and CEO of CoreCivic.

“At the same time, many state and local governments are also in need of our solutions, evidenced most recently by an additional contract award from the state of Montana.”

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CoreCivic previously de-prioritized share repurchases after its contract at the South Texas Family Residential Center was terminated last year. The company has since resumed repurchases and said it had $168.9 million remaining under its authorized buyback as of Dec. 31.

Outlook: CoreCivic expects full-year 2025 net income to be in the range of $53.5 million to $67.5 million. The company anticipates full-year FFO of $1.37 to $1.50 per share versus estimates of $1.77 per share.

Shares appear to be moving lower in reaction to soft guidance. CoreCivic executives will further discuss the quarter on a conference call with investors and analysts set for 11 a.m. ET Tuesday morning.

CXW Price Action: CoreCivic shares were down 6.74% after hours, trading at $17.56 at the time of publication Monday, per Benzinga Pro.

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