CoreCivic (CXW) Q1 2026 earnings summary

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 occupancy, new contracts, and the Farmville acquisition.

• Adjusted EPS was $0.40, up 74% year-over-year, and adjusted net income reached $39.7 million, reflecting M&A expenses and tax benefits.

• Growth was fueled by increased ICE populations, new contract activations at previously idle facilities, and the acquisition of Clinical Solutions Pharmacy (CSP), expanding into correctional pharmacy services.

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

• Share repurchases totaled 2.3 million shares for $44.7 million in Q1; authorization increased to $700 million, with 28.1 million shares repurchased since 2022.

Financial highlights

• Total revenue for Q1 2026 was $614.7 million, up from $488.6 million in Q1 2025; adjusted EBITDA reached $110.1 million, a 36% increase year-over-year.

• Normalized FFO per share was $0.65, up 44% year-over-year; AFFO per share increased to $0.70 from $0.48.

• Operating margin for safety and community facilities was 24%; average compensated occupancy rose to 79.6% from 77.0% year-over-year.

• Net debt to adjusted EBITDA was 2.8x as of March 31, 2026; liquidity stood at $341 million, with $209.7 million cash and $131.3 million available on the revolver.

• Total debt at March 31, 2026 was $1.41 billion, with a weighted average interest rate of 7.3% and maturity of 3.6 years.

Outlook and guidance

• 2026 adjusted EPS guidance raised to $1.53–$1.63; adjusted EBITDA guidance increased to $453.8M–$461.8M; net income guidance $147.8–$157.8 million.

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

• Maintenance CapEx for 2026 projected at $60M–$70M, with total CapEx at $115–$130 million including facility activations.

• AFFO for 2026 forecasted at $250.4M–$264.9M; AFFO per diluted share guidance: $2.56–$2.70.

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