CoreCivic, Inc (CXW) saw its stock soar 5.04% on Wednesday, February 12th, 2025, as the company expects a significant increase in demand for its detention facilities from the U.S. Immigration and Customs Enforcement (ICE) under the new Trump administration. The surge in demand is driven by recent policy changes and legislation aimed at strengthening border security and increasing immigration enforcement.
According to CoreCivic's earnings call, the company has submitted proposals for 28,000 beds to ICE, which could potentially generate $1.5 billion in revenue. The company is actively preparing its idle facilities and making capital expenditures to accommodate the anticipated influx of detainees. CoreCivic's CEO, Damon Hininger, stated that the company is well-positioned to meet ICE's increased demand for secure detention beds due to its existing capacity, operational experience, and cost-effectiveness compared to other alternatives.
The surge in demand for detention facilities is attributed to several factors, including executive orders issued by President Trump upon inauguration, aimed at securing the borders and removing illegal immigrants. Additionally, the recently passed Laken Riley Act requires the mandatory detention of certain non-U.S. nationals charged or convicted of crimes, potentially requiring 60,000 to 110,000 additional detention beds, according to ICE's estimates.
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