CoreCivic Announces New Contract Award At Prairie Correctional Facility
Rhea-AI Summary
CoreCivic (NYSE: CXW) announced a new five-year contract with U.S. Immigration and Customs Enforcement (ICE) to utilize its 1,600-bed Prairie Correctional Facility in Appleton, Minnesota, which has been idle since 2010. The contract begins on August 11, 2026 and includes a fixed monthly payment plus an incremental per diem payment tied to detainee populations.
According to CoreCivic, start-up activities and a phased intake ramp are expected to have an immaterial effect on 2026 earnings. Once fully activated, the facility is expected to generate approximately $75 million in annual revenue. Detainee intake is expected to begin in the fourth quarter of 2026, with full ramp-up targeted for the second quarter of 2027.
Positive
- Five-year ICE contract for 1,600-bed Prairie Correctional Facility starting August 11, 2026
- Previously idle 1,600-bed facility expected to generate ~$75 million annual revenue when fully activated
- Contract structure includes fixed monthly payments plus per diem tied to detainee populations
Negative
- Company expects an immaterial impact on 2026 earnings due to start-up and phased intake ramp
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 13 | Debt redemption | Positive | -1.4% | Planned full redemption of 4.750% senior notes due 2027 using cash on hand |
| Jul 07 | Earnings schedule notice | Neutral | -3.7% | Announced dates for second-quarter 2026 results and subsequent conference call |
| Jul 06 | Facility sale | Positive | -2.0% | Completed $1.5 billion sale of two detention facilities to the U.S. government |
| May 06 | First-quarter earnings | Positive | +3.1% | Reported higher revenue, earnings, adjusted EBITDA, normalized FFO and raised 2026 guidance |
| Apr 01 | Earnings schedule notice | Neutral | +1.2% | Announced dates for first-quarter 2026 results and subsequent conference call |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent positive corporate announcements produced mixed reactions, including a 3.07% gain after the May earnings report versus declines after the facility sale and debt redemption announcements.
Key Terms
per diem financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
BRENTWOOD, Tenn., Aug. 04, 2026 (GLOBE NEWSWIRE) -- CoreCivic, Inc. (NYSE: CXW) ("CoreCivic") announced today that it has been awarded a new contract with U.S. Immigration and Customs Enforcement ("ICE") to utilize the Company's 1,600-bed Prairie Correctional Facility located in Appleton, Minnesota, a facility that has been idle since 2010.
The new contract commences on August 11, 2026, for a term of five years. The agreement provides for a fixed monthly payment plus an incremental per diem payment based on detainee populations. Taking into account start-up activities and the phased commencement of intake operations, we currently expect an immaterial impact to earnings for the remainder of 2026. Once the facility is fully activated, we expect this facility to generate total annual revenue of approximately
Patrick D. Swindle, CoreCivic's Chief Executive Officer, commented, "We are pleased to announce the new contract at our Prairie Correctional Facility. While this facility has been idle since 2010, we have made investments to help ensure an efficient reactivation in the event of a new contract. The geographic location of this facility, similar to our other recent contract awards, improves our ability to support our government partner throughout the United States."
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. CoreCivic provides a broad range of solutions to government partners that help build safer, healthier, and more productive communities one person at a time through residential corrections, detention, and reentry management, complementary service offerings to the corrections industry that include pharmaceutical, transportation, and alternatives to incarceration, and government real estate solutions. CoreCivic is the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and one of the largest operators of such facilities in the United States. CoreCivic has been a flexible and dependable partner for government for more than 40 years. CoreCivic’s 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 statements as to our beliefs and expectations of the outcome of future events that are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. 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, 2025, filed with the SEC on February 20, 2026. 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: Jeb Bachmann - Managing Director, Investor Relations - (615) 263-3024 |
| Media: Steve Owen – Vice President, Communications - (615) 263-3107 |
