CoreCivic, Inc. (CXW)

CoreCivic reported strong Q2 2025 earnings and raised its full-year guidance due to increasing demand, particularly from ICE. The company benefited from record-high ICE populations and anticipated increases in U.S. Marshals Service detainees, leading to new and expanded contracts and reactivated three idle facilities during Q2 2025 and was in advanced negotiations for a fourth. CoreCivic was awarded a new five-year contract for its Diamondback Correctional Facility in Oklahoma and secured two major ICE contracts for facilities in California and Kansas. During the second quarter of 2025, CoreCivic repurchased 2.0 million shares of its common stock at an aggregate cost of $43.2 million. Analysts have given CXW stock an average "Strong Buy" rating, with a 12-month stock price target of $33.33. CoreCivic shares saw a substantial gain of approximately 63% from late September 2024 to August 8, 2025, outperforming the S&P 500.

Demand for CoreCivic's products and services is primarily driven by government policy and funding rather than typical consumer seasonality. The company's revenue is anchored by long-term government contracts. Key drivers of demand include increased government funding for federal detention and border security, record-high ICE populations and anticipated increases in U.S. Marshals Service detainees, and the consistent need for correctional and detention management, residential reentry services, and government real estate solutions. Shifts in government policy or funding priorities could impact future demand.

CoreCivic, Inc. is a diversified government solutions company that owns and operates private prisons and detention centers in the United States, providing outsourced correctional and detention management solutions to government agencies. The company operates through three segments: CoreCivic Safety, which manages correctional and detention facilities and provides inmate transportation; CoreCivic Community, which focuses on residential reentry centers and recidivism reduction programs; and CoreCivic Properties, which owns and manages real estate leased to government agencies.

CoreCivic's operations are concentrated across the United States, serving government partners at federal, state, and local levels. As of December 31, 2021, the company owned and operated 46 correctional and detention facilities, 26 residential reentry centers, and 10 properties for lease.

CoreCivic has faced scrutiny and challenges to its brand reputation due to its involvement in the private prison industry. A September 2025 report cited detainees' claims of substandard conditions, denial of adequate resources, and allegations of solitary confinement at a CoreCivic-run ICE detention facility in California City, which CoreCivic denied. CoreCivic placed a new leadership team at its Trousdale Turner facility to improve operations and regain its reputation. The company has been the target of divestment campaigns and lawsuits alleging civil rights violations and forced labor, and has faced protests at its facilities.

CoreCivic has a diverse ownership structure comprising institutional, retail, and individual investors. Institutional investors and hedge funds collectively own approximately 85.13% of the company's stock. Major institutional owners include BlackRock, Inc., Vanguard Group Inc, River Road Asset Management, LLC, Cooper Creek Partners Management Llc, State Street Corp, Goldman Sachs Group Inc, Geode Capital Management, Llc, Charles Schwab Investment Management Inc, Morgan Stanley, and Deutsche Bank Ag. The largest individual shareholder is Henri L. Wedell, owning 2.16 million shares, representing 1.97% of the company.