CoreCivic rises as US to reopen Texas immigration detention center

Corecivic

06/03/2025 14:05

** Shares of private prison operator CoreCivic Inc CXW.N up 4.8% premarket at $19.22 as U.S. Immigration and Customs Enforcement (ICE) to reopen Texas detention center

** CXW said late Weds it reached agreement with ICE to resume operations at the South Texas Family Residential Center (STFRC) in Dilley, Texas, with capacity for up to 2,400 individuals

** Total rev from the facility expected to be $180 mln, including medical services, and to be accretive to earnings beginning in Q2 2025, co said

** The amended agreement expires in Mar 2030

** Simultaneously, CXW entered new lease agreement with Target Hospitality TH.O, the facility's owner

** Shares of THO jumping 14.3% to $6.33 before the bell

** Last Jun, ICE said it would shutter the facility, which was built in 2014, to reallocate funds and expand detention bed space elsewhere

** Through Weds close, CXW shares down ~15% YTD. Stock has risen 35% since Nov 5 election as U.S. President Donald Trump has vowed to crack down on illegal immigration

 (Lance Tupper is a Reuters market analyst. The views expressed are his own)

 ((lance.tupper@tr.com 1-646-279-6380))