CoreCivic (CXW) investor relations material

Executive summary

• Q1 2026 revenue rose 25.8% year-over-year to $614.7 million, with net income up 51% to $37.9 million and diluted EPS up 65.2% to $0.38, driven by higher ICE populations, new contracts, and the Farmville acquisition.

• Adjusted net income was $39.7 million ($0.40 per diluted share), reflecting M&A expenses and related tax benefits.

• Federal partners, especially ICE, drove revenue growth, with ICE-related revenue up 96.2% and overall federal revenue up 48% year-over-year, despite a decline from the U.S. Marshals Service.

• The acquisition of Clinical Solutions Pharmacy (CSP) was completed for $148 million, expanding into correctional pharmacy services and diversifying revenue streams.

• Q1 results exceeded analyst estimates for adjusted EPS and EBITDA, and full-year guidance was raised despite a temporary decline in ICE populations.

Financial highlights

• Adjusted EBITDA reached $110.1 million, a 36% increase from Q1 2025, driven by facility activations and the Farmville acquisition.

• Normalized FFO per share was $0.65, up 44% year-over-year.

• Operating margin for safety and community facilities was 24%, up from 23.6% in Q1 2025.

• Share repurchases totaled 2.3 million shares for $44.7 million in Q1; 28.1 million shares repurchased since 2022.

• Average compensated occupancy rose to 79.6%, with average daily compensated population up 11.3% year-over-year.

Outlook and guidance

• 2026 adjusted EPS guidance raised to $1.53–$1.63; adjusted EBITDA guidance increased to $453.8M–$461.8M.

• Guidance reflects Q1 outperformance, Midwest Regional Reception Center activation, CSP acquisition, and lower ICE populations.

• ICE populations expected to remain flat through Q2, then grow in the second half; guidance assumes no new unannounced contracts.

• Maintenance CapEx for 2026 projected at $60M–$70M, with $40M–$45M for facility activations.

• AFFO for 2026 forecasted at $250.4M–$264.9M.