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- **New Contracts Drive Growth**: 4 new awards add $320 million annual revenue, with 2026 EBITDA projected at $450 million (+$100M YoY).
- **Aggressive Share Buybacks**: Q4 buybacks to double prior quarters, with potential leverage target exceedance due to $450M EBITDA forecast vs. $300M market assumption.
- **Operational Challenges**: Midwest facility activation delayed by lawsuit, but resolution expected in Q4. Start-up costs reduce Q4 EBITDA guidance by $10-11 million.
- **Government Shutdown Resilience**: Full payment with interest expected for services during shutdown, no impact on operations or activations.
- **State Demand Growth**: State populations up 600 YoY, with 7,000 idle beds available for future contracts.


**【CEO Summary Section】**
- Announced 4 new contract awards totaling $320 million in annual revenue, including the Midwest Regional Reception Center, California City Immigration Processing Center, West Tennessee Detention Facility, and Diamondback Correctional Facility.
- Projected 2026 annual run rate EBITDA of $450 million, up $100 million from 2025, driven by stabilized occupancy of newly activated facilities.
- Highlighted government shutdown impact on cash collections but expressed confidence in resolving legal disputes (e.g., Midwest facility lawsuit) to achieve activation goals.
- Accelerated share repurchase plan to capitalize on undervalued stock, with Q4 buybacks expected to double previous quarters.

**【CFO Financial Commentary】**
- Q3 2025 GAAP EPS: $0.24; Non-GAAP EPS: $0.24 (up 20% YoY). Adjusted EBITDA: $88.8 million (up 6.6% YoY).
- Start-up costs at new facilities reduced Q4 guidance: EBITDA $355-359 million (vs. prior $365-371 million), EPS $1.00-1.06 (vs. prior $1.07-1.14).
- 2025 share repurchases: $121 million (5.9 million shares). Remaining authorization: $198 million.
- 2026 capital expenditures: $97.5-99.5 million for facility activations, plus $60-65 million for maintenance CapEx.

**【Q&A Key Highlights】**
- **ICE Detention Growth**: ICE populations at CoreCivic facilities up 37% YoY to ~14,000, driven by 10,000 new ICE agents. Midwest facility intake delayed by lawsuit, but resolution expected in Q4.
- **Share Repurchases**: Management committed to aggressive buybacks, potentially exceeding leverage target of 2.25-2.75x, citing $450 million 2026 EBITDA forecast vs. $300 million market assumption.
- **CapEx for Activations**: $97.5-99.5 million for 2025, with $20 million carryover to 2026 for unannounced contracts. Dilley facility fully operational, generating $70 million+ annual revenue.
- **Government Shutdown Impact**: Expected full payment with interest for services during shutdown, but timing uncertain. No impact on facility activations or operations.
- **State Partnerships**: Increased demand from states like Montana and Georgia, with 7,000 idle beds available for future contracts. State populations up 600 YoY.
- **Labor Market**: Favorable hiring environment with wage moderation, enabling efficient staff ramp-up at new facilities.


CoreCivic, Inc. (CXW) Q3 2025 Earnings Call Transcript

Revenue

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Financing Services Revenue

Other Revenue

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Cost of Financing Services

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Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

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CXW

CXW fundamentals

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