CoreCivic sold two California detention centers to DHS and said it will keep operating them under ICE contracts.
Why it matters: The deal shows how immigration enforcement is driving new business for private detention operators. It also leaves CoreCivic more exposed to federal contract decisions and policy shifts tied to ICE detention demand.
- CoreCivic sold the California City Detention Facility and Otay Mesa Detention Center to DHS on July 2, 2026, for about $1.47 billion combined.
- CoreCivic said it expects to keep managing both facilities under existing ICE contracts, while ICE can modify or terminate those agreements.
- CoreCivic reported $261.3 million in ICE revenue in Q1 2026, up from $133.2 million a year earlier.
- GEO Group said 2025 revenue was $2.0 billion and linked new business wins to new ICE detention contracts and activations.
CoreCivic said it sold the 2,560-bed California City Detention Facility and the 1,994-bed Otay Mesa Detention Center to the Department of Homeland Security on July 2, 2026, for about $732.6 million and $739.2 million, respectively. The company said the facilities remain under its management contracts, and it expects to keep operating them for ICE. CoreCivic also disclosed that ICE can modify or terminate the agreements. California City’s management contract expires in August 2027, while Otay Mesa’s expires in December 2029, with a five-year extension option. CoreCivic filing
The transaction lands as ICE detention demand has climbed. CoreCivic said its ICE revenue reached $261.3 million in the first quarter of 2026, up from $133.2 million a year earlier. The company also said it reactivated four previously idle facilities in 2025 and added more than 7,600 beds through four contract modifications and a West Tennessee contract award. Q1 2026 results West Tennessee contract award
GEO Group also reported stronger demand tied to immigration detention. The company said fourth-quarter 2025 revenue was $707.7 million and full-year revenue was $2.0 billion, and CEO George C. Zoley said 2025 was the company's most successful year for new business wins, driven in part by new ICE detention contracts and activations. GEO Group results
By the numbers
- $1.47 billion - combined sale price CoreCivic said it received for the two California facilities.
- $261.3 million - CoreCivic's ICE revenue in Q1 2026, up from $133.2 million a year earlier.
- $2.0 billion - GEO Group's full-year 2025 revenue, according to the company.
Yes, but: CoreCivic still faces contract risk because ICE can modify or end the agreements, and the management contracts on the two California facilities expire in 2027 and 2029.
What's next: California City’s management contract expires in August 2027; Otay Mesa’s expires in December 2029, with a five-year extension option.