CoreCivic, Inc. ( CXW ) Q3 2025 Earnings Call November 6, 2025 2:30 PM EST Company Participants Jeb Bachmann Damon T. Hininger - CEO & Director Patrick Swindle - President & COO David Garfinkle - Executive VP & CFO Conference Call Participants Joseph Gomes - NOBLE Capital Markets, Inc., Research Division Marla Marin - Zacks Small-Cap Research Kirk Ludtke - Imperial Capital, LLC, Research Division Raj Sharma Gregory Gibas - Northland Capital Markets, Research Division Ben Briggs - StoneX Financial Inc. Edwin Groshans - Compass Point Research & Trading, LLC, Research Division Jason Weaver - JonesTrading Institutional Services, LLC, Research Division Presentation Operator Good day, and welcome to CoreCivic's Third Quarter 2025 Earnings Conference Call.
CoreCivic (CXW) is rebounding, driven by major ICE contracts and facility reactivations, leading to record top-line and free cash flow growth. Recent multi-year contracts and acquisitions are projected to add $60-80M in annual incremental EBITDA, with further upside if idle facilities are reactivated. CXW's capital structure is now robust, with leverage reduced to 2.9x and liquidity ample, reflecting successful restructuring and improved credit market perception.
CoreCivic stock has dropped 22% recently, creating an attractive buying opportunity due to market overreaction, not fundamental weakness. CXW's core business remains strong, with new contracts expected to boost revenue, and essential operations funded even during government shutdowns. The sell-off has inflated option premiums, presenting lucrative opportunities for selling puts or trading options on CXW.
| Specialty Retail Industry | Consumer Discretionary Sector | Damon T. Hininger CEO | XDUS Exchange | US21871N1019 ISIN |
| US Country | 11,649 Employees | 15 Apr 2020 Last Dividend | 9 Jul 2007 Last Split | 15 Jul 1997 IPO Date |
CoreCivic, Inc. is a multinational corporation based in Brentwood, Tennessee, specializing in owning and operating partnership correctional, detention, and residential reentry facilities across the United States. Since its inception in 1983, CoreCivic has grown to service government partners through three primary segments: CoreCivic Safety, CoreCivic Community, and CoreCivic Properties. These segments collectively aim to serve the public good by providing comprehensive corrections and detention management, residential reentry centers to combat recidivism, and real estate solutions tailored to governmental needs. CoreCivic's approach includes offering a myriad of rehabilitation and educational programs across its facilities, seeking not only to manage detention environments but also to enable individuals' reintegration into society through various support services.
This segment is dedicated to the management and operation of correctional and detention facilities. CoreCivic Safety ensures the secure and ethical treatment of detainees and inmates, providing not only security but also programs aimed at rehabilitation and education. These include basic education courses, faith-based services, and life skills and employment training designed to facilitate successful reentry into society.
Through its Community segment, CoreCivic addresses the critical issue of America's recidivism crisis by operating residential reentry centers. These facilities are designed to offer a smoother transition for individuals reentering society from prison by providing support in finding employment, accessing continuing education, and obtaining substance abuse treatment. The primary aim is to reduce the chances of re-offense by equipping former inmates with the tools necessary for a productive life post-incarceration.
CoreCivic Properties specializes in offering real estate solutions to government agencies. This includes leasing and managing properties for a variety of government uses beyond corrections and detention, such as administrative offices or training facilities. The provision of these solutions is aimed at enabling government partners to achieve their operational goals efficiently and effectively, with a focus on flexibility and cost-effectiveness.