CoreCivic Raises 2026 Adjusted Earnings Outlook After Facility Sales

The Tip Desk · November 10, 2026 · 5 min read

Adjusted diluted earnings were $0.49 a share in the third quarter, and the company lifted full-year 2026 adjusted diluted EPS guidance to $1.74–$1.80.

CoreCivic, Inc. (CXW) sold four detention facilities containing 7,187 beds for $2.2 billion of gross proceeds and recorded a $1,770.7 million gain on sale of real estate assets, lifting third-quarter net income to $1,344.1 million, or $14.49 a share, from $26.3 million, or $0.24 a share, a year earlier.

The government-solutions company used $1.6 billion of after-tax net proceeds to repay more than $700 million of debt and to fund a $500 million accelerated share repurchase. Leverage, measured as net debt to Adjusted EBITDA on a trailing-twelve-months basis, fell to (0.1)x from 2.5x a year earlier and from 2.9x at the end of the second quarter. Total debt was $629.6 million at September 30, 2026.

Excluding special items, Adjusted Diluted EPS was $0.49, up 104.2% from the year-ago quarter, after 5.6% growth in the second quarter and 73.9% in the first. Adjusted EBITDA was $117.8 million, up 32.6%. Normalized FFO per diluted share was $0.75, up 56.3%. Total revenue was $744.1 million, up 28.2% from the year-ago quarter, accelerating from 27.3% growth in the second quarter and 25.8% in the first.

President and Chief Executive Officer Lucibeth Mayberry said the quarter was driven by increased demand from U.S. Immigration and Customs Enforcement, including higher utilization of recently activated facilities, and by the April 1, 2026 acquisition of Clinical Solutions Pharmacy.

Residential occupancy rose to 84.0% from 76.7% a year earlier. The company cited new contract awards at the 600-bed West Tennessee Detention Facility, the 2,560-bed California City Detention Facility, the 2,160-bed Diamondback Correctional Facility, and the 1,033-bed Midwest Regional Reception Center. Those four facilities are expected to generate about $320.0 million of annual revenue once fully activated.

Federal customers in the Residential segment generated 53% of total revenue, down from 55% a year earlier, and rose $71.3 million, or 22.2%, versus the year-ago quarter. The company said the increase was primarily from higher occupancy, particularly at facilities under ICE contracts, and per diem increases. Residential operating margin was relatively flat at 22.3% versus 22.5% a year earlier because the four facilities under activation were not yet at fully activated margins; those four facilities generated $19.9 million of net operating income in the quarter.

CoreCivic Services net operating income increased $8.5 million to $9.6 million from $1.1 million a year earlier, primarily from CSP, which provides mail-order pharmacy services to more than 600 correctional facilities across 32 states.

The company completed sales of California City and Otay Mesa on July 2, 2026, and of Appleton and Midwest on August 4, 2026, all to the United States through the Department of Homeland Security. It said it currently expects to continue managing the four facilities under existing ICE contracts, although terms are expected to be modified to reflect the change in ownership. California City and Midwest management contracts expire in August 2027; Otay Mesa expires in December 2029 with a five-year extension option; Appleton expires in August 2031. The company said it has been in preliminary discussions with ICE about potential additional facility sales and that it can provide no assurance they will occur.

On August 10, 2026, CoreCivic entered the $500 million ASR, paid $500 million to the dealer, and received 12.4 million shares. Weighted average diluted shares outstanding fell 13.8% versus the year-ago quarter, after an 8.9% reduction in the second quarter. On November 3, 2026, the board expanded the repurchase authorization by another $500 million, raising aggregate authorization to $1.7 billion and leaving $755.8 million available before further ASR settlements.

On August 3, 2026, the company was awarded a five-year ICE management contract to activate the 1,600-bed Appleton Detention Facility, with a fixed monthly payment plus incremental per diem. It expects about $75.0 million of annual revenue once fully activated, detainee intake in the fourth quarter of 2026 and completion in the second quarter of 2027, and an immaterial earnings impact for the remainder of 2026.

For full-year 2026, the company raised Adjusted Diluted EPS guidance to $1.74–$1.80 from $1.64–$1.73, Adjusted Net Income to $165.0–$171.0 million from $157.0–$165.0 million, and Adjusted EBITDA to $442.5–$445.5 million from $434.5–$439.5 million. FFO per share guidance is $2.85–$2.92 and Normalized FFO per share $2.78–$2.85. Net income guidance was lowered to $1.461–$1.467 billion from $1.492–$1.511 billion, and diluted EPS to $15.42–$15.48 from $15.62–$15.82. The company said the updated ranges incorporate its best estimate of the financial impact of the change in ownership of the four sold facilities and do not include any potential additional sales.

Patrick Swindle stepped down as President and CEO on September 24, 2026, due to health reasons; Mayberry, previously Executive Vice President and Chief Strategy Officer, was appointed to the role and to the board. The quarter included settlement compensation associated with the executive transition.