CoreCivic, Inc. (CXW) Balance Sheet

The balance sheet is expanding, with total assets up 20.7% year-over-year, driven primarily by an increase in total debt from $1.0B to $1.3B. This suggests the company is leveraging up to fund growth, likely in response to rising ICE populations. The equity base remained stable at $1.4B, so the growth is debt-financed, which may increase financial risk if cash flows do not keep pace.

The property portfolio is stable in size, with no significant acquisitions or dispositions, as PP&E held at $2.1B. The increase in NOI from $82.2M in Q2 2024 to $113.1M in Q2 2026 suggests higher occupancy or per-diem rates, likely tied to ICE populations. This implies the existing asset base is being utilized more intensively, but also highlights concentration risk in federal contracts.

The debt-to-equity ratio rose from 0.70 to 0.94 over the past year, indicating increased leverage. However, FFO also grew from $51.1M to $73.0M, so the additional debt appears to be supporting earnings growth. The interest coverage, implied by FFO relative to debt, remains adequate, but the rising leverage warrants monitoring if FFO growth stalls.

The equity base has been stable, with no significant issuance or buybacks, suggesting the company is retaining earnings to fund growth. ROE has doubled from 1.3% to 2.6% year-over-year, driven by higher net income. This improvement is positive, but the absolute ROE remains low, reflecting the capital-intensive nature of the business and the impact of depreciation.

Cash balances are volatile, swinging from $209.7M to $108.9M quarter-over-quarter, which may indicate working capital timing effects. Despite the decline, the company maintains a reasonable liquidity position relative to its debt, and FFO generation appears stable. The lack of a revolver draw suggests adequate access to credit, but the volatility in cash warrants monitoring for potential liquidity constraints.

The company's revenue is heavily dependent on federal contracts, particularly with ICE, which are subject to political and policy shifts. The absence of a detailed lease expiration schedule in the data limits the ability to assess near-term renewal risk. Investors should monitor contract renewals and occupancy trends, as any policy change could impact asset utilization and cash flows.