CoreCivic has secured a new five-year contract with ICE to reactivate its 1,600-bed Prairie Correctional Facility, which has been idle since 2010. This agreement is expected to generate approximately $75 million in annual revenue once fully operational by Q2 2027, significantly boosting the company's top line.
CoreCivic announced a new five-year contract with U.S. Immigration and Customs Enforcement (ICE) to utilize its previously idle 1,600-bed Prairie Correctional Facility in Minnesota. This is a significant positive development for CXW as it brings a dormant asset back online, projected to generate approximately $75 million in annual revenue once fully activated by Q2 2027. While the impact on 2026 earnings will be immaterial due to start-up activities, the long-term revenue stream is substantial for a company of CoreCivic's size. This contract provides a clear growth catalyst and improved utilization of its real estate assets, potentially leading to increased profitability and investor confidence in the long term. Traders should note the phased ramp-up, with full revenue realization not expected until mid-2027.