CoreCivic Cuts Fiscal Year Guidance Amid Efforts to Launch New Detention Facilities

By Katherine Hamilton

CoreCivic reduced its full-year earnings guidance after incurring start-up expenses tied to the launch several new immigration detention centers.

The prison operator on Wednesday said it cut its full-year net income outlook to a range of $107 million to $113 million, down from $116.4 million to $124.4 million. It lowered its outlook for earnings per share to a range of 99 cents to $1.05, from $1.08 to $1.15.

CoreCivic is still fielding strong demand from Immigration and Customs Enforcement, and expects detainee populations to continue to grow as ICE continues its crackdown on immigrants.

The company received several new contracts from ICE in the quarter, and is still in the process of activating three facilities related to the contracts. The ongoing activation process resulted in $3.4 million in operating losses during the quarter.

The company expects to reach stabilized occupancy at its new ICE detention centers in California and West Tennessee. Its intake process has been delayed at a center in Leavenworth, Kansas, where the company is facing a lawsuit over permitting.

The Brentwood, Tenn., company posted a profit of $26.3 million, or 24 cents a share, in the quarter ended Sept. 30, compared with $21.1 million, or 19 cents a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were also 24 cents, below the 27 cents anticipated by analysts, according to FactSet.

Revenue rose 18% to $580.4 million. Analysts surveyed by FactSet forecast revenue of $543.1 million.

The government shutdown hasn't affected CoreCivic, as law enforcement is considered an essential government service, the company said.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

November 05, 2025 18:51 ET (23:51 GMT)