CoreCivic (CXW) investor relations material

Executive summary

• Q2 2026 revenue rose 27.3% year-over-year to $684.9 million, driven by facility activations and higher ICE populations, with net income at $37.1 million and diluted EPS at $0.37, up from $0.35 year-over-year.

• Major facility sales post-quarter generated $2.23 billion gross and $1.6 billion net proceeds, significantly enhancing liquidity, enabling substantial debt repayment, and expanding share repurchase authorization by $500 million to $1.2 billion.

• Q2 results exceeded analyst estimates for adjusted EPS and EBITDA, with operational focus on activating idle facilities and meeting increased demand from government partners.

• Share repurchases since May 2022 total 28.1 million shares at $15.82 per share, with $755.8 million remaining under the current authorization.

Financial highlights

• Adjusted EBITDA for Q2 2026 was $109.4 million, up 5.9% year-over-year; adjusted EPS was $0.38, and normalized FFO per share rose to $0.64.

• Operating income for Q2 2026 was $68.1 million; net operating income for the first half was $295.98 million, up from $253.66 million year-over-year.

• Revenue from federal partners increased 27.2% year-over-year; ICE revenue up 51.6%.

• Operating margins in Residential declined to 22.4% from 26.1% year-over-year, impacted by lower ICE populations and prior year credits.

Outlook and guidance

• Full-year 2026 adjusted EPS guidance raised to $1.62–$1.70; normalized FFO per share $2.61–$2.70; adjusted EBITDA expected at $440.5–$445.5 million.

• Guidance incorporates continued management of sold facilities, higher ICE populations in H2 2026, and minimal earnings impact from new Prairie facility contract.

• Maintenance CapEx forecasted at $65–$75 million; AFFO expected at $257.5–$271.5 million.

• Capital expenditures for 2026 projected at $115–$130 million, including real estate maintenance and facility activations.