CXW is reactivating three facilities that it had idled, including two under letter agreements. CXW is optimistic that it will reach long-term agreements with ICE and others to warrant bringing additional capacity online. The 3rd facility, Dilley, is being reactivated under a new long-term agreement that is expected to generate annual revenue of ~ $180m when it has ramped fully and to be accretive beginning in 2Q25. Reflecting the limited supply of and older state of many government-owned correctional facilities, among other factors, we anticipate that the company will continue to sign new business that, in turn, will further enhance operating leverage, results and lead to multiple expansion.
