CoreCivic Inc

Motorola Solutions and other safety and security services stocks reported a very strong second quarter, with group revenues beating analysts' consensus estimates by 3.6%. Motorola Solutions posted revenues of $3.13 billion, up 13.3% year on year, exceeding expectations by 4.4%, and raised its full-year guidance. GEO Group reported revenues of $732.1 million, up 15.1% year on year, while CoreCivic delivered the biggest beat with revenues of $684.9 million, up 27.3% year on year. Brink's revenues of $1.39 billion were in line with estimates, and MSA Safety posted revenues of $503.3 million, up 6.2% year on year. Share prices of the group have held steady, up 2.9% on average since the latest earnings results.

CoreCivic reported second quarter 2026 revenue of $684.9 million, up 27.3% year over year, driven by the activation of five previously idle facilities and higher federal populations. Adjusted EBITDA was $109.4 million, and total occupancy rose 1.6 percentage points to 78.4%. The company completed the sale of four detention facilities to the Department of Homeland Security for gross proceeds of $2.2 billion, with net proceeds of approximately $1.6 billion after taxes and transaction costs. CoreCivic's board authorized a $500 million increase to its share repurchase program, bringing the total authorization to $1.2 billion, and the company redeemed $238.5 million of 4.75% senior notes due 2027. For fiscal 2026, CoreCivic expects diluted EPS of $15.15 to $15.20, reflecting a significant one-time gain from the facility sales, and adjusted EBITDA of $440.5 million to $445.5 million.

CoreCivic has completed the sale of two detention facilities to the US government for an aggregate gross price of $734.0 million. The properties are the 1,600-bed Prairie Correctional Facility in Appleton, Minnesota, sold for $495.6 million, and the 1,033-bed Midwest Regional Reception Center in Leavenworth, Kansas, sold for $238.4 million. After estimated taxes of $182.2 million and transaction costs, net proceeds are expected to be approximately $522.5 million, which the company may use for debt reduction and share repurchases. CoreCivic currently operates both facilities under management contracts with Immigration and Customs Enforcement that expire in 2031 and 2027, respectively, though the terms may be modified and there is no assurance the contracts will continue. The company also disclosed preliminary discussions with ICE about potential additional facility sales.

CoreCivic completed the sale of its 2,560-bed California City Detention Facility and its 1,994-bed Otay Mesa Detention Center to the U.S. Department of Homeland Security for an aggregate gross sales price of $1.5 billion. The California City Facility sold for $732.6 million and the Otay Mesa Facility for $739.2 million. After approximately $0.4 billion in taxes and transaction expenses, net proceeds are expected to be about $1.1 billion. The company plans to use a portion of the proceeds to repay outstanding debt, including $270.0 million on its Revolving Credit Facility, $107.8 million on the Initial Term Loan, $100.0 million on the Incremental Term Loan, and the remaining $238.5 million of its 4.75% senior notes due October 2027. Remaining net proceeds may be used for general corporate purposes, including additional debt repayments and share repurchases, subject to leverage ratio limits under its credit agreement and 8.25% senior notes indenture. CoreCivic expects to continue managing both facilities under existing ICE contracts, though terms may be modified and contracts can be terminated for non-appropriation or convenience.

Shares of CoreCivic rose 3.3% to $29.86 after reports that Immigration and Customs Enforcement rewrote national detention standards, a move expected to benefit private prison operators. The revised standards apply to for-profit contractors like CoreCivic and contributed to a 14-day winning streak in which the stock climbed 37%. Competitor Geo Group also saw its stock reach a 52-week high, indicating sector-wide positive sentiment. CoreCivic has gained 57% year-to-date and set a new 52-week high.

Safety and security services stocks delivered a very strong first quarter, with the six companies tracked by StockStory beating revenue estimates by 2.5% on average and next-quarter revenue guidance coming in line. CoreCivic reported revenues of $614.7 million, up 25.8% year on year and exceeding expectations by 1.9%, making it the fastest-growing company in the group. Brady posted the biggest analyst estimate beat with revenues of $435.2 million, up 13.8% and surpassing forecasts by 7.2%. GEO Group recorded the highest full-year guidance raise among its peers, with revenues of $705.2 million, up 16.6% and beating estimates by 1.8%. Motorola Solutions, the weakest performer relative to estimates, reported revenues of $2.71 billion, up 7.4% and exceeding expectations by 0.6%, while Brink's revenues came in at $1.38 billion, up 10.3% and beating by 0.9%. Since reporting, CoreCivic shares are up 33.2%, GEO Group up 58.2%, Brady up 17.6%, Brink's down 2.1%, and Motorola Solutions down 7.3%.