CoreCivic to reactivate idle Tennessee detention facility under ICE contract

BRENTWOOD, Tenn. - CoreCivic, Inc. (NYSE:CXW), a corrections facility operator with a market capitalization of $2.21 billion and currently considered undervalued according to InvestingPro Fair Value analysis, has secured a new contract to resume operations at its previously idle 600-bed West Tennessee Detention Facility under an intergovernmental services agreement between the City of Mason, Tennessee, and U.S. Immigration and Customs Enforcement (ICE).

The facility, which has been inactive since September 2021, will be reactivated under a contract that expires in August 2030 with potential for extension. The agreement includes a fixed monthly payment plus additional per diem payments based on detainee populations.

CoreCivic expects the facility to generate approximately $30 million to $35 million in annual revenue once fully operational. The company anticipates minimal earnings impact in the third quarter of 2025, with the contract becoming accretive to earnings in the fourth quarter. Full operational capacity is expected by the end of the first quarter of 2026.

"When fully activated, we expect to add well over 200 jobs to the local community," said Patrick D. Swindle, CoreCivic’s President and Chief Operating Officer, according to the press release.

The West Tennessee facility represents the fourth previously idle facility that CoreCivic has reactivated, totaling approximately 6,600 beds. The company has also made over 1,000 additional detention beds available to ICE through four contract modifications announced earlier this year.

CoreCivic describes itself as a government-solutions company that provides corrections and detention management services, along with residential and non-residential alternatives to incarceration and government real estate solutions.

The information in this article is based on a company press release statement.

In other recent news, CoreCivic Inc. reported strong financial results for the second quarter of 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.36, which is 71.43% higher than the projected $0.21. Revenue also exceeded forecasts, coming in at $538.2 million compared to the anticipated $499.02 million, marking a 7.85% increase. These results were well-received by analysts and investors alike. The earnings announcement highlights CoreCivic’s ability to outperform market predictions. Such financial performance is crucial for investors assessing the company’s current standing. The recent developments indicate a positive trend in CoreCivic’s financial health. Analysts and market watchers will likely keep a close eye on future earnings reports.

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