CoreCivic, Inc.

Second quarter GAAP EPS was $0.37, FFO per share was $0.63, adjusted EPS was $0.38 versus $0.36 in Q2 2025, normalized FFO per share was $0.64 versus $0.59, and adjusted EBITDA was $109.4 million versus $103.3 million in the prior-year quarter. Excluding employee retention credit impacts in the prior year, adjusted EPS increased 35.7%, normalized FFO per share increased 25.5%, and adjusted EBITDA increased $17.7 million, or 19.3%. Residential segment operating margin was 22.4% versus 26.1% last year, and services segment operating margin was 10.2%. For 2026, CoreCivic guided to diluted EPS of $15.15 to $15.20, adjusted diluted EPS of $1.62 to $1.70, normalized FFO per share of $2.61 to $2.70, adjusted EBITDA of $440.5 million to $445.5 million, AFFO of $257.5 million to $271.5 million, G&A of $173 million to $175 million, maintenance CapEx of $65 million to $75 million, other CapEx of $15 million, and CapEx tied to idle/activating facilities of $35 million to $40 million. The guidance embeds the impact of the four facility sales and current assumptions for ICE populations, but does not include any additional potential sales or share repurchases.

Patrick Swindle framed the quarter around execution, asset monetization, and capital flexibility. He said the four facility sales were at a fair valuation and highlighted that they demonstrate the underlying value of the real estate portfolio, while also strengthening the balance sheet and enabling more repurchases or reinvestment. He was upbeat about government demand, citing recent facility awards, rising ICE populations, and the view that CoreCivic remains well positioned as a turnkey capacity provider.

David Garfinkle emphasized the earnings bridge and balance-sheet actions. He cited Q2 adjusted EBITDA of $109.4 million, leverage of 2.9x net debt to adjusted EBITDA at June 30, $108.9 million of cash, and $382.2 million of total liquidity before the post-quarter sales closed. He walked through the sales proceeds and debt paydown, noting $608.5 million of debt repayment from the California City/Otay Mesa transaction and about $522 million of net proceeds from the Midwest Regional Reception Center and Prairie sale, leaving roughly $1 billion of cash on hand, $739.1 million of debt, and $553.3 million of revolver capacity. He also said the updated guidance reflects lower EBITDA from the facility sales and possible contract adjustments, partly offset by interest income on residual cash and modestly higher residential populations.

Analysts focused on how much of the lower EBITDA guidance reflects contract changes on the sold facilities, but management said those negotiations are still incomplete and not being quantified separately. Questions also centered on ICE population trends and whether buybacks might pause during additional asset-sale talks; management said buybacks depend on negotiations and window timing, but they still expect to repurchase shares in the second half if circumstances allow. One analyst pressed on leverage and stock repurchases, and management said the 2.0x leverage level is the practical limiter under the 2029 notes covenant, while Patrick Swindle said the stock still looks undervalued on an enterprise-value-to-EBITDA basis despite the year-to-date share price rally.