CoreCivic, Inc. Q1 FY2026 earnings call

• President and CEO Patrick Swindle emphasized the importance of the work the team does, with ~55,000 individuals entrusted to their care daily. • Total occupancy for Safety and Community segments up 2.6 points y-o-y. Average daily population increased due to more demand, new contracting, and FarmVille acquisition. • Federal partners, especially ICE, contributed significantly to revenue growth. • Activated five idle facilities to meet ICE demand. • Acquired Clinical Solutions Pharmacy, which complements core mission and provides diversifying revenue stream. • CFO David M. Garfinkle discussed financial results, including GAAP EPS, adjusted EPS, adjusted EBITDA, etc.

Safety and Community segments total occupancy was 79.6% in Q1 2026, up 2.6 points from year-ago. Average daily population across managed facilities was 57,243 in Q1 2026 vs 51,429 in year-ago. Federal partners, primarily ICE and U.S. Marshals Service, comprised 58% of total revenue in Q1. Revenue from federal partners increased 48% y-o-y. Revenue from state partners comprised 33% of total revenue in Q1, increased 3.6% y-o-y. Activated five idle facilities to meet ICE demand. Acquired Clinical Solutions Pharmacy in April 2026.

• Expect diluted EPS of $1.51 to $1.61 and adjusted diluted EPS of $1.53 to $1.63, up from prior guidance. • Expect FFO per share of $2.58 to $2.68 and normalized FFO per share of $2.60 to $2.70, up from prior guidance. • Expect adjusted EBITDA of $453.8 million to $461.8 million, up from prior guidance. • Q2 expected to have sequential decline in per-share results due to recent ICE population reduction, but second half expected to see growth. • Plans to spend $60 million to $70 million on maintenance capital expenditures, $15 million on other capital expenditures, and $40 million to $45 million on capital expenditures for activating idle facilities and potential additional activations.

• Uncertainty in ICE population trends, as recent reduction was temporary but could impact financial results. • Government shutdowns and changes in DHS leadership can impact detention populations and revenue. • Uncertainty in timing and outcome of ICE's strategy regarding facility ownership and bed needs, such as conversion of warehouses to detention centers. • Dependence on government contracts and funding, which can be subject to political and budgetary changes.

Q: Raj Sharma asked about valuation of facilities sold to ICE and facility utilization levels.

A: Patrick Swindle discussed that valuation of special-purpose assets is difficult with no direct comps, and David M. Garfinkle projected ICE populations to sustain around current levels through end of second quarter and grow back in third and fourth quarters.

Q: Gregory Thomas Gibas asked about Q2 implied guidance and CSP details.

A: David M. Garfinkle bridged Q1 to Q2 with factors like employee retention credits and ICE population decline, and Patrick Swindle discussed CSP's growth potential and synergies.

Q: Benjamin Briggs asked about acquisition strategy.

A: Patrick Swindle said prioritization is toward share repurchases but will consider appropriate business acquisitions.

Q: Joseph Anthony Gomes asked about CSP expansion and state contract timing.

A: Patrick Swindle said there are other providers in the market and timelines for state contracts are variable.

Q: William Sutherland asked about ICE population growth in second half and states they focus on.

A: David M. Garfinkle said growth in second half is based on ramping facilities and nationwide population resumption, and Patrick Swindle said not to specify where ICE is focused.

Q: Marla Marin asked about CSP cross-promotional opportunities and market share.

A: Patrick Swindle said there are cross-selling opportunities and Clinical Solutions has significant market growth runway.

Q: Analyst asked about population changes and expense adjustment.

A: David M. Garfinkle and Patrick Swindle discussed expense adjustment with lower populations and reasons for expecting growth in second half.

Q: Kirk Ludtke asked about ICE converting warehouses to detention centers.

A: Patrick Swindle said not much movement on warehouse conversions and they are challenging.

Q: Gregory Thomas Gibas asked about idle facilities and contracting after appropriations.

A: Patrick Swindle said they are in constant dialogue and expect awards during remainder of year.