CoreCivic's Q1 2025: Key Contradictions in ICE Capacity, Facility Activation, and Contract Negotiations

ICE population and capacity needs, activating idle facilities, and ICE contract negotiations and timelines are the key contradictions discussed in CoreCivic's latest 2025Q1 earnings call.



Revenue and Profit Growth:
- CoreCivic reported revenue of $488.6 million for Q1 2025, exceeding expectations, with notable strength from facilities serving the U.S. Immigration and Customs Enforcement (ICE) facilities.
- The growth was driven by increased ICE detainee numbers and higher occupancy rates from state partners.

Operational Improvements and Capacity Utilization:
- CoreCivic's occupancy rate improved to 77%, up 1.8 percentage points from the previous year, with significant increases in ICE detention population levels.
- This was attributed to efficient cost management, facility activations, and increased staffing levels.

Contract Modifications and New Contracts:
- The company secured new contract modifications for facilities to add capacity for ICE detainees, including modifications at facilities in Ohio, Nevada, and Oklahoma.
- These modifications were facilitated by changes in administrative policy and the need for increased capacity to meet ICE's growing demands.

Letter Contracts for Facility Activations:
- CoreCivic entered into letter contracts with ICE for facilities in Kansas and California, which authorize funding for a six-month period to reactivate the facilities while negotiating long-term contracts.
- This strategy allows the company to prepare facilities and reduce activation costs before formal contracts are signed.