CoreCivic wins $100 million contract to reactivate Oklahoma facility

BRENTWOOD, Tenn. - CoreCivic, Inc. (NYSE:CXW), whose stock has delivered an impressive 63.7% return over the past year according to InvestingPro data, has secured a five-year contract to reactivate its 2,160-bed Diamondback Correctional Facility in Oklahoma, which has been idle since 2010, according to a press release statement issued Wednesday.

The contract, established through an Intergovernmental Services Agreement between the Oklahoma Department of Corrections and U.S. Immigration and Customs Enforcement (ICE), is expected to generate approximately $100 million in annual revenue once the facility is fully operational. With current annual revenue of nearly $2 billion and all three covering analysts revising earnings estimates upward, InvestingPro analysis suggests the company is currently trading below its Fair Value.

The agreement, which commenced on September 30, provides for a fixed monthly payment plus an incremental per diem payment based on detainee populations. CoreCivic plans to begin receiving detainees in the first quarter of 2026, with full capacity expected by the second quarter.

The company will invest an additional $13 million for renovations requested by ICE over the next several quarters.

This contract follows three other facility reactivations announced during the third quarter of 2025. Together, these four previously idle facilities represent 6,353 beds and approximately $325 million in annual revenue once fully activated.

CoreCivic describes itself as the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and one of the largest operators of such facilities in the United States. The company maintains strong financial health with a current ratio of 1.6 and has demonstrated management confidence through aggressive share buybacks, according to InvestingPro analysis, which offers additional insights through its comprehensive Pro Research Report covering 1,400+ top US stocks.

In other recent news, CoreCivic Inc. reported impressive financial results for the second quarter of 2025. The company achieved an earnings per share of $0.36, significantly surpassing the forecasted $0.21 by 71.43%. Revenue also exceeded expectations, reaching $538.2 million compared to the projected $499.02 million, marking a 7.85% increase. In addition to their financial performance, CoreCivic secured two new contracts with U.S. Immigration and Customs Enforcement (ICE) for 3,593 beds, expected to generate nearly $200 million annually. The contracts involve the California City Immigration Processing Center and the Midwest Regional Reception Center in Kansas. Furthermore, CoreCivic announced the reactivation of its previously idle West Tennessee Detention Facility under a new ICE contract, effective until August 2030. The company also revealed leadership changes, with Patrick D. Swindle set to become President and CEO in January 2026, succeeding Damon T. Hininger. These developments reflect CoreCivic’s strategic moves and robust financial performance.

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