CoreCivic reported third quarter 2026 revenue of $744.1 million, outperforming the $698.93 million consensus. The reporting period was primarily defined by the $2.2 billion sale of four detention facilities to the federal government, which generated a $1.8 billion gain and facilitated massive capital reallocation. While GAAP EPS reached $14.49 due to these gains, Adjusted Diluted EPS of $0.49 fell below consensus expectations despite robust occupancy growth and increased federal demand.
Key Highlights
- Finalized the $2.2 billion divestiture of four detention facilities to the Department of Homeland Security, yielding approximately $1.6 billion in net proceeds after taxes.
- Initiated a $500 million accelerated share repurchase (ASR) program and authorized an additional $500 million increase to the total share repurchase program.
- Residential occupancy improved to 84.0% compared to 76.7% in the prior-year quarter, driven by higher ICE utilization and the activation of previously idle facilities.
- Utilized sale proceeds to repay over $700 million in debt, reducing the net debt-to-Adjusted EBITDA leverage ratio to -0.1x from 2.5x year-over-year.