Universal Technical Institute (NYSE:UTI) opened fiscal 2026 with revenue growth and reiterated full-year guidance, while management emphasized that near-term profitability will reflect planned “growth investments” tied to new campuses and program expansion. Executives said first-quarter performance tracked in line with internal plans and positioned the company for what they expect will be accelerating enrollment and revenue growth later in the year.
First-quarter results and enrollment trends
For the fiscal first quarter, Universal Technical Institute reported revenue of $220.8 million, up 9.6% year-over-year. Consolidated net income was $12.8 million, or $0.23 per diluted share.
On the student side, the company highlighted growth in its key operating metric, average full-time active students, which it said drives revenue more directly than new student starts. Total average full-time active students increased 7.2% to 26,858. Total new student starts rose 2.6% to 5,449, which management said was consistent with the outlook it had previously provided.
By division, the Concorde segment posted a 9.5% increase in average full-time active students, which management attributed to sustained demand across nursing and allied health. The UTI division grew average full-time active students 5.7% year-over-year, which executives linked to strength across programs, employer demand, and improved campus utilization.
Revenue by segment rose in both divisions: Concorde contributed $78.0 million, up 11.5%, while the UTI division produced $142.8 million, up 8.6%.
Guidance reiterated; investment year expected to pressure profits in Q2
CEO Jerome Grant and CFO Bruce Schuman reiterated the company’s fiscal 2026 outlook. Management continued to forecast consolidated revenue of $905 million to $915 million, with baseline adjusted EBITDA of about $156 million and approximately $40 million of growth investments related to new campuses and programs. Reported adjusted EBITDA is expected to be between $114 million and $119 million.
The company also reaffirmed expectations for total new student starts of 31,500 to 33,000 for the year. Schuman provided a quarterly cadence for starts and revenue growth, saying the company anticipates low-to-mid double-digit starts growth in the second quarter, followed by mid-to-high single-digit growth in the remaining quarters. For revenue, management expects mid- to high-single-digit growth in Q2 and Q3 (with Q3 slightly higher), and the highest growth in Q4 in the low double-digit range.
Net income guidance was reiterated at $40 million to $45 million, with diluted EPS of $0.71 to $0.80. Schuman said net income will “contract further” in Q2 as growth investments ramp, improve slightly in Q3 but still be down year-over-year, and then return to low- to mid-double-digit growth in Q4.
Schuman also reaffirmed prior commentary on adjusted free cash flow, reiterating expectations of $20 million to $25 million for fiscal 2026. He attributed the lower cash flow to the company’s capital spending plan, including roughly $100 million of CapEx for the year, with $75 million characterized as growth CapEx.
North Star strategy: campus launches and program expansion
Management framed results and investments within its “North Star” strategy, which focuses on building a repeatable model for opening campuses, expanding programs on existing campuses, and optimizing facility performance. Grant pointed to the company’s most recent campus launches—Austin and Miramar—as evidence of repeatability.
- At Miramar, management said the campus has more than 600 average full-time active students, is adding automotive sessions, and is pursuing capacity expansion for the “capacity-constrained” Aviation Maintenance Technology program.
- At Austin, management said the campus has more than 1,000 average full-time active students, which Grant stated is 70% higher than the company modeled.
Looking to fiscal 2026 launches, Grant said the Heartland/Concorde co-branded campus in Fort Myers, Florida opened in November and that demand exceeded expectations, with programs filling to capacity within two weeks and waiting lists already in place.
The company said it is about a month away from opening a new skilled trades and aviation-focused campus in San Antonio, where it already has more than 300 students ready to start, with strong interest in welding and HVACR. Grant said the campus is planned to train more than 600 students annually and generate about $32 million in run-rate revenue at scale.
Universal Technical Institute also said it is preparing to open a comprehensive Atlanta campus in the second half of fiscal 2026, offering programs including Auto, Diesel, Aviation, and the Trades. Grant said the UTI division projects the campus will enroll more than 1,200 students and generate upwards of $45 million in run-rate revenue at scale, and noted recruiting began about a month earlier with “quite impressive” student interest.
Beyond campuses, management reiterated program growth targets for the next phase of North Star, stating plans to launch between 12 and 20 new programs annually across the UTI and Concorde divisions. For fiscal 2026, Grant said the company will launch more than 20 programs, with at least 10 from each division. On the UTI side, he outlined plans for 12 programs (including HVACR, Aviation Maintenance, and multiple offerings in its “Electrical Suite” such as Industrial Maintenance, Robotics & Automation, and Wind Turbine Technology). On the Concorde side, the company said it plans to launch at least 10 new programs in 2026, including eight Radiation Technology programs, one Surgical Technology program, and one Diagnostic Medical Sonography program.
Q&A: starts mix, marketing, regulatory approvals, and margins
During Q&A, management discussed start trends and marketing focus. Grant said Concorde starts were expected to be roughly flat due to a difficult year-ago comparison, noting Concorde starts were up more than 26% in the prior-year first quarter. He added that the company has been investing more aggressively in UTI ahead of the San Antonio and Atlanta launches.
On high school recruiting, Grant said the company added a number of high school representatives in the fall, but he expects the payoff to show next fall as the pipeline develops for graduating seniors. Schuman said UTI starts were “nice kind of across the board,” with mid-single-digit performance across channels.
Management also addressed marketing yield and student acquisition costs, saying it is seeing continued improvement and increased efficiency, including from experiments using AI-driven technology and more precise targeting. Schuman noted marketing dollar efficiency as a percentage of revenue was up about a point year-over-year in Q1, attributing the increase to investment behind new campus openings and new programs.
On regulatory matters, Grant said the Fort Myers campus will operate like other campuses going forward, with students able to use government loans and Pell Grants alongside other support programs. He also highlighted a quick federal approval process for Title IV funding at Fort Myers, stating approval was received within 72 hours after accreditor approval. However, he cautioned that state-level processes can still be slower, noting some state bodies may only meet on such topics twice per year.
Regarding margins, Schuman said margin pressure in the quarter—at both Concorde and UTI—was directly attributable to growth investments and not to structural issues within the divisions.
Long-term framework unchanged
Schuman said the company’s long-term financial framework under North Star remains unchanged, including a target of more than $1.2 billion in revenue by fiscal 2029 and adjusted EBITDA approaching $220 million by that year. He added that management expects revenue growth to begin accelerating in fiscal 2027, with EBITDA dollar growth emerging in 2027 and accelerating more significantly in 2028 and 2029, while emphasizing that margin expansion will not be linear due to the multi-year campus build cycle and upfront investment requirements.
About Universal Technical Institute (NYSE:UTI)
Universal Technical Institute, Inc (NYSE: UTI) is a leading provider of post-secondary education for students pursuing careers as professional automotive, diesel, collision repair, motorcycle and marine technicians, as well as in welding and CNC machining. The company designs and delivers hands-on training through a blend of classroom instruction and experiential lab work, preparing graduates for entry-level positions in the transportation, manufacturing and energy sectors. UTI’s curriculum emphasizes industry-recognized credentials and proprietary coursework developed in collaboration with original equipment manufacturers (OEMs) to ensure alignment with evolving employer needs.
Through a network of campus locations across the United States and select centers in Canada, Universal Technical Institute offers diploma and certificate programs ranging from 36 to 74 weeks in length.
