CoreCivic secures ICE contracts for 3,593 beds worth $200 million annually

BRENTWOOD, Tenn. - CoreCivic, Inc. (NYSE:CXW), whose stock has surged over 70% in the past year and is currently considered undervalued according to InvestingPro analysis, has been awarded two new contracts with U.S. Immigration and Customs Enforcement (ICE) to utilize 3,593 beds at two company-owned facilities, according to a press release statement issued Monday.

The contracts cover the 2,560-bed California City Immigration Processing Center and the 1,033-bed Midwest Regional Reception Center in Leavenworth, Kansas. Once fully activated, the company expects to generate combined annual revenue of nearly $200 million from both facilities, representing approximately 10% of CoreCivic’s current annual revenue of $2 billion.

The California City facility began receiving detainees on August 27, 2025, under a previous Letter Contract, with the definitive contract taking effect September 1, 2025. CoreCivic anticipates completing the activation process in the first quarter of 2026, with normalized operations expected by the second quarter. This contract, projected to generate approximately $130 million annually, expires in August 2027.

For the Midwest Regional Reception Center, the new contract commenced September 7, 2025, for a 24-month term. However, legal challenges have delayed the intake of detainees. The agreement provides for a fixed monthly payment plus incremental per diem payments based on detainee populations once temporary injunctions are resolved. This facility is expected to generate approximately $60 million in annual revenue when fully operational.

Both facilities were idle at the beginning of the year, according to the company. CoreCivic noted that employees hired for the Midwest facility may be redeployed to other activations until legal challenges are resolved.

CoreCivic describes itself as a diversified government-solutions company that provides corrections and detention management, alternatives to incarceration, and government real estate solutions. With a market capitalization of $2.3 billion and analyst price targets ranging from $28 to $32, the company maintains a "GOOD" financial health score according to InvestingPro, which offers 8 additional key insights about the company’s performance and outlook in its comprehensive Pro Research Report.

In other recent news, CoreCivic Inc. reported strong financial results for the second quarter of 2025. The company’s earnings per share (EPS) reached $0.36, significantly surpassing the forecast of $0.21 by 71.43%. Revenue also exceeded expectations, coming in at $538.2 million compared to the projected $499.02 million, marking a 7.85% increase. Additionally, CoreCivic announced the reactivation of its 600-bed West Tennessee Detention Facility under a new contract with U.S. Immigration and Customs Enforcement (ICE). This contract, part of an intergovernmental services agreement, will last until August 2030 and includes fixed monthly and per diem payments. In leadership changes, Patrick D. Swindle is set to become President and CEO effective January 1, 2026, succeeding Damon T. Hininger. Swindle, currently President and Chief Operating Officer, will also join the Board of Directors at that time. These developments reflect CoreCivic’s strategic initiatives and financial performance.

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