Emkes Mark A sold $1.0M of CXW

CoreCivic (CXW) raised its 2026 guidance, expecting net income of $1.492B-$1.511B and EPS of $15.62-$15.82. The stock has seen significant gains, with a 3-year return of 209.08%, but recent momentum has eased. Analysts debate its valuation, with some seeing it as 19.2% undervalued at $31.99 per share, while others point to a high P/E ratio of 24.7x.

ICE awarded $8.4B to 1,100+ companies since Jan 2025, including $154M for weapons, per The Appeal. Top recipients: Atlantic Diving Supply ($100M), CoreCivic, GEO Group ($1B+ combined). Contracts span 48 states, funding everyday operations and law enforcement. Activists pressure firms to cut ties with ICE.

CoreCivic (NYSE:CXW) reported Q2 2026 revenue of $684.9 million (+27.3%) and adjusted EBITDA of $109.4 million. Total occupancy rose to 78.4%. The company generated $2.2 billion gross proceeds from selling four detention facilities to DHS, authorized a $500 million share repurchase increase, and redeemed $238.5 million of 4.75% notes. FY2026 diluted EPS guidance is $15.00-$15.20.

ICE and DHS are expanding immigration detention capacity amid rising arrests, with reports of overcrowded ICE holding centers. DHS is seeking bids for 5,500 beds and plans to reopen GEO Group’s Rivers Correctional Institution with 1,400 beds. DHS also bought two CoreCivic prisons in California for $1.5 billion, potentially reducing state oversight.

CoreCivic said it sold four detention facilities to the U.S. Department of Homeland Security for $2.2 billion gross proceeds, including $1.5 billion for two California sites and $734 million for facilities in Kansas and Minnesota. The company expects about $1.6 billion net and will keep operating under existing management contracts. Q2 revenue rose 27.3% to $684.9 million; net income was $37.1 million.

CoreCivic (CXW) said it entered an accelerated share repurchase to buy back $500 million of its shares, initially expecting about 12.4 million shares. It raised 2026 guidance, including EPS to $15.62-$15.82 and FFO per share to $2.66-$2.75. It expects $255.8 million remaining under its $755.8 million program.