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- **Phase 2 Success**: 2025 revenue of $836 million (+14% YoY) and adjusted EBITDA of $126.5 million exceeded expectations, driven by 10.8% growth in new student starts.
- **2026 Growth Plan**: $905-915 million revenue target (+9% YoY) with 3 new campuses and 20+ programs, despite $40 million in growth investments.
- **Long-Term Vision**: $1.2 billion revenue and $220 million EBITDA by 2029, fueled by campus replication and program expansion.
- **Operational Discipline**: 2026 free cash flow of $20-25 million and 2-3% tuition increases balanced against student funding trends.

**【Management Opening Remarks】**
- CEO Jerome Grant highlighted the success of the "North Star" strategy Phase 2, with revenue exceeding twice-raised guidance to $836 million (14% YoY growth) and adjusted EBITDA of $126.5 million.
- CFO Bruce Schuman emphasized disciplined execution, with average full-time active students up 10.5% to 24,688 and new student starts increasing 10.8% to 29,793.
- The company raised 2026 revenue guidance to $905-915 million (9% YoY growth) and expects to open 3 new campuses in 2026, launching 20+ new programs across UTI and Concorde.

**【CEO Commentary】**
- Fiscal 2025 marked the first year of Phase 2, with strategic investments of $6 million in growth initiatives, netting $126.5 million in adjusted EBITDA.
- 2026 priorities include opening 3 new campuses (Fort Myers, Atlanta, San Antonio) and launching 20+ programs, with revenue growth of 9% YoY and new student starts of 31,500-33,000.
- Long-term vision targets $1.2 billion in revenue and $220 million in adjusted EBITDA by 2029, driven by campus replication and program expansion.

**【CFO Financial Commentary】**
- Q4 2025 revenue was $222.4 million (13.3% YoY growth), with full-year net income of $63 million ($1.13 EPS) and adjusted EBITDA of $126.5 million.
- 2026 guidance includes $905-915 million in revenue, $40 million in growth investments, and adjusted EBITDA of $114-119 million.
- Free cash flow for 2026 is projected at $20-25 million, with $100 million in CapEx for campus expansion and modernization.

**【Q&A Highlights】**
- **Student Growth Distribution**: 2026 new student starts will be evenly split between UTI and Concorde, with 8-9% YoY growth.
- **Campus Expansion**: 2-5 new campuses annually starting 2026, with Salt Lake City UTI campus expected to generate $40-45 million in revenue at scale.
- **DOE Impact**: No front-end delays in student admissions, with cash collection delays resolved by Q1 2026.
- **Tuition Pricing**: 2-3% YoY increases, balanced against student funding availability.
- **Employment Trends**: Graduation placement rates remain strong, with demand for skilled trades and healthcare programs outpacing supply.

Universal Technical Institute, Inc. (UTI) Q4 2025 Earnings Call Transcript

- **Regulatory Tailwind**: Federal support for skilled trades education accelerates growth, with Pell-eligible short courses opening new revenue streams.\n- **Strong Q3 Results**: 15% revenue growth, 37% EBITDA expansion, and 13% student growth highlight execution strength.\n- **Concorde Expansion**: Growth restrictions lifted, enabling 2026 program/campus launches ahead of schedule.\n- **UTI Momentum**: HVACR and aviation programs expand to 11/11 campuses, with 2026 Atlanta/San Antonio campuses on track for $68M+ revenue.\n- **Guidance Uptick**: Revenue raised to $830-835M, starts to 29,500-30,000, driven by Concorde and UTI program expansions.\n- **Long-Term Vision**: Phase II North Star Strategy targets $1B revenue and $200M EBITDA by 2029, supported by accelerated Concorde growth.\n

**【CEO Summary Section】**
- **Regulatory Environment & Legislative Wins**: Favorable federal support for skilled trades education, with the One Big Beautiful Bill Act enabling Pell-eligibility for short-term programs, opening new growth avenues for UTI and Concorde.\n- **Q3 Financial Highlights**:\n  - Revenue: $204.3M (+15% YoY), beating expectations.\n  - Net Income: $10.7M (+114% YoY), EPS $0.19.\n  - Adjusted EBITDA: $25.3M (+37% YoY).\n  - Students: 23,757 avg full-time (+13% YoY).\n- **Divisional Performance**:\n  - **Concorde**: 20.7% revenue growth, 18.8% student growth, with 60 new nursing seats in Dallas and 10 short-course programs launched.\n  - **UTI**: HVACR programs expanded to 11 campuses, aviation program graduates win national competition.\n- **Guidance Update**:\n  - Revenue: $830-835M (+14% YoY).\n  - New Student Starts: 29,500-30,000.\n  - EBITDA: $124-128M (+23% YoY).\n- **Strategic Initiatives**:\n  - 2026 UTI campuses in Atlanta and San Antonio (projected $45M and $23M revenue).\n  - 2025 program expansions (e.g., HVACR, aviation) on track.\n  - Phase II North Star Strategy targets $1B revenue and $200M EBITDA by 2029.\n
**【CFO Financial Commentary】**
- **Revenue Breakdown**:\n  - Concorde: $72.8M (+20.7% YoY).\n  - UTI: $131.5M (+12.2% YoY).\n- **Growth Investments**:\n  - Q3: $1.7M spent on new programs/campuses.\n  - YTD: $2.2M.\n- **Liquidity & Cash Flow**:\n  - Total liquidity: $236.9M.\n  - YTD operating cash flow: $40.2M.\n  - YTD capex: $25.5M (program/campus expansion).\n- **Guidance Reaffirmation**:\n  - Net Income: $56-60M.\n  - Free Cash Flow: $62-68M.\n
**【Q&A Highlights】**
- **Concorde Growth Restrictions Lifted**:\n  - Accelerated expansion by 1 year, with potential for 6+ new programs/campuses in 2026.\n  - EBITDA margin moderation in 2026-27 due to investment, but long-term upside for 2028+ growth.\n- **Student Start Visibility**:\n  - Q4 UTI starts expected to offset Q3 softness, with 50% of UTI starts in Q4 driven by high school graduates.\n- **Capital Allocation**:\n  - Focus on organic growth (campus/program expansion), with $55M capex in 2025.\n  - No immediate plans for buybacks or M&A beyond strategic alignment.\n- **Regulatory & Legislative Updates**:\n  - Pell-eligible short courses to expand UTI's reach in skilled trades.\n  - Ongoing engagement with DOE to lift clinical program caps at Concorde.\n  - System consolidation (ERP, CRM) underway, with multi-year integration plan.\n

Universal Technical Institute, Inc. (UTI) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: Q2 2025 revenue up 12.6% YoY to $207.4M, driven by 10.3% student growth and 21.4% new starts. Concorde (+20.3%) and UTI (+8.8%) both outperformed.
- **Strategic Expansion**: 3 new campuses in 2026 (e.g., San Antonio skilled trades) and 6+ new programs annually, targeting $1B revenue by 2029 with 20% EBITDA margins.
- **Financial Strength**: Adjusted EBITDA up 27.8% YoY to $28.9M. Fiscal 2025 guidance raised to $825-$835M revenue and $124-$128M EBITDA.
- **Investment Outlook**: 2026-2027 EBITDA growth to slow due to $55M+ annual CapEx, with acceleration expected in 2028-2029 as new campuses scale.


**【CEO Summary Section】**
- Q2 2025 revenue increased 12.6% YoY to $207.4 million, driven by 10.3% growth in average full-time active students to 24,604. New student starts rose 21.4% YoY to 6,650.
- Concorde division revenue grew 20.3% YoY to $73.2 million, with strong demand for clinical programs and new nursing initiatives. UTI division revenue rose 8.8% YoY to $134.2 million, fueled by skilled trades programs like HVACR and welding.
- Fiscal 2025 guidance raised to $825-$835 million in revenue (13% YoY growth), $124-$128 million in adjusted EBITDA, and 29,000-30,000 new student starts.
- Phase 2 of North Star Strategy includes 3 new campuses in 2026 (e.g., San Antonio skilled trades campus) and 6+ new programs annually, targeting $1 billion revenue by 2029 with 20% EBITDA margins.

**【CFO Financial Commentary】**
- Q2 2025 net income of $11.4 million ($0.21 EPS) vs. $7.8 million ($0.14 EPS) prior year. Adjusted EBITDA of $28.9 million (+27.8% YoY).
- Year-to-date operating cash flow of $22.2 million and free cash flow of $8 million. Capital expenditures of $14.3 million for program expansions.
- Fiscal 2025 adjusted free cash flow guidance of $62-$68 million, assuming $55 million CapEx. EBITDA growth expected to slow in 2026-2027 due to strategic investments, accelerating in 2028-2029.

**【Q&A Highlights】**
- **Growth Drivers**: Strong demand for skilled trades (welding, HVACR) and healthcare programs. Concorde clinical courses seeing 15.9% YoY new student starts growth. UTI skilled trades programs filling faster than projected.
- **Tailwinds**: Shift toward vocational education, onshoring initiatives, and employer demand for trained workers. New Heartland Dental co-branded campus to add $4 million annual revenue.
- **Marketing Strategy**: Concorde marketing ROI exceeding expectations, with plans to maintain investments. UTI focusing on adult learners for trades programs.
- **Risk Management**: No material impact from regulatory changes; strong communication with DOE. Fiscal 2026 growth investments expected to moderate EBITDA growth before scaling in 2028+.


Universal Technical Institute, Inc. (UTI) Q2 2025 Earnings Call Transcript

- **Revenue Growth**: 15.3% YoY to $201.4M, driven by 22.3% YoY increase in new student starts.
- **Profitability**: Adjusted EBITDA up 44.7% YoY to $35.5M; free cash flow $18.9M.
- **Expansion Plans**: 3 new UTI campuses in 2026, 10 short courses at Concorde, and co-branded dental campus in 2026.
- **M&A Focus**: Nursing and Allied Health acquisitions to complement Concorde portfolio.
- **Guidance Update**: Revenue $810-820M (11% growth), EBITDA $122-126M (20% growth), starts 28,500-29,500.

**【CEO Opening Remarks】**
- Q1 2025 revenue reached $201.4 million, up 15.3% YoY, driven by strong performance across both Concorde and UTI divisions.
- Average full-time active students increased 11.1% YoY to 25,062, with new student starts up 22.3% YoY to 5,313.
- Adjusted EBITDA rose 44.7% YoY to $35.5 million, reflecting operational efficiency gains.
- Key initiatives include: 
  - Launching 10 cash-pay short courses at Concorde campuses in 2025.
  - Opening a co-branded dental campus with Heartland Dental in early 2026.
  - Consolidating Houston campuses to reduce overhead and improve margins.
- Fiscal 2025 guidance raised to: 
  - Revenue: $810-820 million (11% YoY growth)
  - Adjusted EBITDA: $122-126 million (20% YoY growth)
  - New student starts: 28,500-29,500

**【CFO Financial Highlights】**
- GAAP net income: $22.2 million ($0.40 EPS)
- Non-GAAP metrics: 
  - Operating cash flow: $23 million
  - Free cash flow: $18.9 million
  - Total liquidity: $246 million
- Key financial trends: 
  - Deferred strategic investments reduced Q1 expenses by ~$10 million.
  - Anticipate $55 million in 2025 capital expenditures.
  - Free cash flow expected to accelerate in Q4, consistent with historical patterns.

**【Q&A Key Takeaways】**
1. **Campus Expansion Strategy:**
   - 3 new UTI campuses planned for 2026 (Atlanta, GA; Heartland Dental co-branded; and 1 undisclosed location).
   - Targeting 2 new campuses annually starting 2026, with Concorde growth restricted until 2027.
2. **M&A Activity:**
   - Increased pipeline post-election, focusing on health care acquisitions to complement Concorde's Allied Health portfolio.
   - Priority on nursing programs to expand market share in high-demand sector.
3. **Expense Management:**
   - Q2 operating expenses expected to rise $10-15 million YoY due to delayed Q1 investments.
   - Margins expected to improve sequentially, with Q4 seeing typical seasonal strength.
4. **Market Trends:**
   - Positive macro environment for vocational education, with employers offering enhanced benefits (e.g., Tesla tuition reimbursement programs).
   - UTI division benefiting from deferred Q4 2024 starts, while Concorde growth driven by marketing/sales investments.


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