CoreCivic Announces Four New Contract Modifications to Add Capacity for U.S. Immigration and Customs Enforcement

Rhea-AI Summary

CoreCivic (NYSE: CXW) has secured contract modifications with U.S. Immigration and Customs Enforcement (ICE) to expand detention capacity across four facilities. The expansion includes: up to 784 detainees at Northeast Ohio Correctional Center, Nevada Southern Detention Center, and Cimarron Correctional Facility in Oklahoma, plus 252 beds at Tallahatchie County Correctional Facility in Mississippi.

The facilities currently serve multiple government contracts: Northeast Ohio houses 650 U.S. Marshals Service (USMS) residents and 925 Ohio Department of Rehabilitation and Correction residents; Nevada Southern accommodates 800 USMS residents; Cimarron holds 1,100 USMS residents; and Tallahatchie serves approximately 1,400 residents under contracts with eight different customers.

Positive

• Secured new ICE contract modifications adding 1,036 beds capacity
• Existing facilities have available capacity for immediate expansion
• Multiple revenue streams from diverse government contracts
• Expected increase in federal government demand

Negative

• None.

Insights

Financial Analyst

CoreCivic's contract modifications to add capacity for up to 1,036 ICE detainees across four facilities represents a significant revenue opportunity. Based on industry standards where ICE detention contracts typically generate $60-100 per detainee per day, these modifications could potentially add $22-38 million in annual revenue without requiring new facility construction.

This development addresses a key challenge for CoreCivic: capacity utilization. The company has been operating with excess capacity at several facilities, and these modifications will improve utilization rates across properties that currently serve multiple government clients. This multi-tenant approach creates operational efficiencies that should enhance facility-level margins.

The timing aligns with increased immigration enforcement activity, creating a favorable demand environment for CoreCivic's services. However, investors should note that federal detention contracts carry both opportunity and risk - they can provide stable revenue streams but remain subject to policy shifts with changing administrative priorities.

These contract modifications represent a positive inflection point after a period when some government entities had been reducing private detention contracts. CoreCivic's statement about "entering a period where our government partners, particularly our federal government partners, are expected to have increased demand" signals management's confidence in continued contract growth beyond this announcement.

Government Policy Expert

These contract modifications signal a significant policy implementation shift in federal immigration enforcement. By adding capacity for 1,036 ICE detainees across four facilities in different regions, the government is creating a geographically distributed detention network that can respond to enforcement priorities in multiple border and interior regions simultaneously.

This expansion comes amid increased immigration enforcement actions and processing backlogs within the detention system. The geographic distribution is strategically important - the facilities in Ohio and Mississippi provide capacity in regions that have historically had ICE detention options, potentially enabling more localized detention rather than transferring detainees across regions.

CoreCivic's multi-client facility model provides ICE with operational flexibility that purpose-built federal facilities cannot easily match. This approach allows for rapid capacity adjustments as enforcement priorities shift, but it also creates complex oversight environments where facilities must simultaneously satisfy different detention standards from multiple government clients (ICE, USMS, and state corrections).

The CEO's statement about "entering a period where our federal government partners are expected to have increased demand" suggests internal knowledge about forthcoming policy implementation that will require additional detention capacity. This likely reflects assessments of both current enforcement trends and anticipated policy directives that would increase detention requirements.

These modifications represent a significant reversal from the trend several years ago when federal contracts with private detention operators faced increased scrutiny and limitations. The renewed expansion indicates a pragmatic approach to meeting immediate operational needs through existing infrastructure rather than developing new federal facilities.

BRENTWOOD, Tenn., Feb. 27, 2025 (GLOBE NEWSWIRE) -- CoreCivic, Inc. (NYSE: CXW) ("CoreCivic") announced today that it has entered into contract modifications to add capacity for up to a total of 784 detainees from U.S. Immigration and Customs Enforcement ("ICE") at its 2,016-bed Northeast Ohio Correctional Center, its 1072-bed Nevada Southern Detention Center, and its 1,600-bed Cimarron Correctional Facility in Oklahoma. In addition, CoreCivic has obtained a contract modification to specify that ICE may use up to 252 beds at its 2,672-bed Tallahatchie County Correctional Facility in Mississippi.

CoreCivic currently cares for approximately 650 residents under a contract with the U.S. Marshals Service ("USMS"), as well as 925 residents under a contract with the Ohio Department of Rehabilitation and Correction at the Northeast Ohio Correctional Center. CoreCivic currently cares for approximately 800 residents under a contract with the USMS at the Nevada Southern Detention Center, and approximately 1,100 residents under a contract with the USMS at the Cimarron Correctional Facility. CoreCivic currently cares for approximately 1,400 residents at the Tallahatchie County Correctional Facility under contracts with eight different customers.

Damon T. Hininger, CoreCivic's Chief Executive Officer, commented, "We are pleased to provide U.S. Immigration and Customs Enforcement with this additional capacity. We have an extensive supply of available beds that provides our government partners the flexibility to satisfy their immediate and long-term needs in a cost-effective manner. I am particularly proud of our dedicated team of professionals at each of these three facilities who are capable of managing these diverse customer requirements. We are entering a period where our government partners, particularly our federal government partners, are expected to have increased demand. We anticipate additional contracting activity that will help satisfy their growing needs."

About CoreCivic

CoreCivic is a diversified, government-solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through high-quality corrections and detention management, a network of residential and non-residential alternatives to incarceration to help address America’s recidivism crisis, and government real estate solutions. We are the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and believe we are the largest private owner of real estate used by government agencies in the United States. We have been a flexible and dependable partner for government for more than 40 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. Learn more at www.corecivic.com.

Cautionary Note Regarding Forward-Looking Statements

This press release includes forward-looking statements as to our beliefs and expectations of the outcome of future events including increasing demand from our government partners, particularly our federal government partners, and the prospects of growth in CoreCivic's business. These forward-looking statements may include such words as "anticipate," "estimate," "expect," "project," "plan," "intend," "believe," "may," "will," "should," "can have," "likely," and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. Such forward-looking statements may be affected by risks and uncertainties in CoreCivic's business and market conditions. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. Important factors that could cause actual results to differ are described in the filings made from time to time by CoreCivic with the Securities and Exchange Commission ("SEC") and include the risk factors described in CoreCivic's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 21, 2025. Except as required by applicable law, CoreCivic undertakes no obligation to update forward-looking statements made by it to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events.

Contact:

Investors: Michael Grant - Managing Director, Investor Relations - (615) 263-6957 Media: Steve Owen – Vice President, Communications - (615) 263-3107

FAQ

How many additional ICE detention beds is CoreCivic (CXW) adding across its facilities?

CoreCivic is adding capacity for up to 1,036 ICE detainees total - 784 beds across three facilities and 252 beds at Tallahatchie County Correctional Facility.

Which CoreCivic (CXW) facilities are receiving ICE contract modifications in 2025?

Northeast Ohio Correctional Center, Nevada Southern Detention Center, Cimarron Correctional Facility, and Tallahatchie County Correctional Facility.

What is the current occupancy at CoreCivic's (CXW) Northeast Ohio Correctional Center?

The facility currently houses 650 U.S. Marshals Service residents and 925 Ohio Department of Rehabilitation and Correction residents.

What is CoreCivic's (CXW) outlook for federal government contracts?

CoreCivic expects increased demand from federal government partners and anticipates additional contracting activity to meet growing needs.