Business
CXW: Occupancy Continues to Rise With Reactivated Facilities, Positive on CEO Appointment
By M. Marin NYSE:CXW READ THE FULL CXW RESEARCH REPORT OCCUPANCY WILL CONTINUE TO RISE WITH REACTIVATED CAPACITY COMING ONLINE Strong momentum continues with new contract, potentially others CoreCivic (NYSE:CXW) recently made two significant announcements. Last week CXW announced that it has been awarded a new contract under an intergovernmental services agreement (IGSA) between the City of
About this update from Corecivic, Inc.
By M. Marin NYSE:CXW READ THE FULL CXW RESEARCH REPORT OCCUPANCY WILL CONTINUE TO RISE WITH REACTIVATED CAPACITY COMING ONLINE Strong momentum continues with new contract, potentially others CoreCivic (NYSE:CXW) recently made two significant announcements. Last week CXW announced that it has been awarded a new contract under an intergovernmental services agreement (IGSA) between the City of Mason, Tennessee, and ICE (U.S. Immigration and Customs Enforcement) to resume operations at its West Tennessee Detention Facility through August 2030 with an option to extend. The 600-bed facility has been idle since September 2021. The agreement provides for a fixed monthly payment plus an incremental per diem payment based on detainee populations. Once the facility is fully activated, it is expected to produce about $30 million to $35 million total annual revenue for CXW at margins that are consistent with the CoreCivic Safety segment. The new contract is not expected to have a meaningful impact on 3Q25 earnings but be accretive to earnings beginning in 4Q25, although we are not modifying our model at this point. Full ramp is currently expected to be complete by the end of 1Q26. With this latest contract award, CXW has reactivated four idle facilities containing an aggregate roughly 6,600 beds, and made more than 1,000 additional detention beds available to ICE. The company previously indicated that it was in discussion to re-activate other idled facilities, in addition to four announced earlier, reflecting the additional capacity required by ICE. Between reactivating idled facilities & M&A, CXW has added capacity to meet growing ICE demand CXW is in the process of reactivating the following idled facilities: We view CEO appointment positively Yesterday CXW announced that its board has appointed Patrick D. Swindle to President and Chief Executive Officer, effective January 1, 2026, to succeed Damon T. Hininger, who has served as CEO since August 17, 2009. He was appointed President and Chief Operating Officer on January 1, 2025. We view this appointment positively, as he has extensive industry experience and has served in various executive roles at CoreCivic. He has overseen significant growth and momentum at CXW, having joined the company in 2007 as Managing Director, Treasury and has held numerous positions, including VP, Strategic Development; SVP Operations; Executive Vice President and Chief Corrections Officer; and Executive Vice President and COO. SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR. DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks SCR provides and Zacks SCR receives payments totaling a maximum fee of up to $50,000 annually for these services provided to or regarding the issuer. Full Disclaimer HERE .