Core Viewpoint - Patterson-UTI Energy, Inc. reported an average of 94 drilling rigs operating in the United States for January 2026 [1] Company Summary - The company is actively engaged in drilling operations, with a specific focus on the U.S. market [1]

Core Insights - Patterson-UTI Energy, Inc. (PTEN) reported a narrower adjusted net loss of 2 cents per share for Q4 2025, better than the Zacks Consensus Estimate of an 11-cent loss and an improvement from a 12-cent loss in the same quarter last year [1][9] - Total revenues reached $1.2 billion, exceeding the Zacks Consensus Estimate by 5%, primarily driven by strong performance in the Completion Services segment [2][9] - The board of directors increased the quarterly dividend by 25% to 10 cents per share, payable on March 16, 2026 [3] Segment Performance - **Drilling Services**: Revenues were $360.8 million, down 11.6% year-over-year, missing the estimate of $365 million. Operating income was $43 million, beating the estimate of $37.7 million [4] - **Completion Services**: Revenues increased by 7.8% year-over-year to $701.6 million, surpassing the estimate of $647 million. The operating loss narrowed to $3.6 million from a loss of $50.2 million in the previous year [5] - **Drilling Products**: Revenues decreased by 3.2% year-over-year to $83.8 million, missing the estimate of $85 million. Operating profit was $6.8 million, compared to a loss of $0.2 million in the prior year [6] - **Other Services**: Revenues fell by 71.3% year-over-year to $4.7 million, missing the estimate of $4.8 million [6] Financial Position - Capital expenditures for the quarter were $138.5 million, slightly down from $140.3 million in the prior year. As of December 31, 2025, cash and cash equivalents were $420.6 million, with long-term debt of $1.2 billion and a debt-to-capitalization ratio of 27.5% [8] - Total operating costs and expenses were $1.151 billion, down from $1.1935 billion in Q4 2024 [8] Q1 2026 Outlook - The company expects an average rig count in the low-to-mid 90s for the Drilling Services segment in Q1 2026, with adjusted gross profit anticipated to decline by less than 5% from Q4 2025 [11] - For Completion Services, adjusted gross profit is expected to be around $95 million, while Drilling Products segment's adjusted gross profit is anticipated to improve slightly [12] - Selling, general and administrative (SG&A) expenses are projected to be about $65 million, with total depreciation, depletion, amortization, and impairment expenses expected to be approximately $225 million for the upcoming quarter [13]

Shares of Universal Technical Institute, Inc. (UTI) are moving down about 7 percent on Thursday morning trading despite no corporate-related announcements to impact the movement.The company's shares are currently trading at $25.91 on the New York Stock Exchange, down 7.00 percent. The stock opened at $25.08 and has climbed as high as $29.00 so far in today's session. Over the past year, it has traded in a range of $21.29 to $36.32.The company's stock closed trading at $27.86 on Wednesday. For comments and ...

Core Insights - Universal Technical Institute, Inc. emphasizes the importance of skilled collar and healthcare workers in the American economy, highlighting an urgent shortage of qualified workers despite high job availability [1][2] - The company aims to educate approximately 32,000 students in Fiscal Year 2026 through its divisions, UTI and Concorde Career Colleges, which focus on various in-demand fields [1][4] - The ongoing shift in workforce dynamics, influenced by reconsideration of traditional college paths and the impact of artificial intelligence, positions skilled collar and healthcare roles as stable employment options [4] Company Overview - Universal Technical Institute, Inc. is a leading workforce solutions provider founded in 1965, operating two main divisions: UTI and Concorde Career Colleges [5] - UTI operates 15 campuses across nine states, offering training in transportation, skilled trades, electrical, and energy sectors, while Concorde has 18 campuses in eight states and online, focusing on allied health, dental, nursing, and patient care programs [5]

Financial Performance - Revenues for the three months ended December 31, 2025, increased to $220,844,000, up from $201,429,000 in the same period of 2024, representing a growth of approximately 9.5%[16] - Net income for the three months ended December 31, 2025, was $12,827,000, a decrease from $22,153,000 in Q4 2024, reflecting a decline of approximately 42.3%[16] - Earnings per share (EPS) for Q4 2025 were $0.24 (basic) and $0.23 (diluted), down from $0.41 (basic) and $0.40 (diluted) in Q4 2024[16] - Income from operations for the three months ended December 31, 2025, was $15,687,000, down from $27,478,000 in the prior year, a decline of 43.0%[86] - Total operating expenses for the three months ended December 31, 2025, were $205,157,000, up from $173,951,000 in the same period of 2024, indicating a 18.0% increase[86] Cash Flow and Investments - Cash flows from operating activities provided $3,084,000 in Q4 2025, significantly lower than $22,962,000 in Q4 2024[23] - The company incurred a net cash used in investing activities of $46,556,000 in Q4 2025, compared to $3,345,000 in Q4 2024[23] - The total investments as of December 31, 2025, amounted to $69,791,000, with available-for-sale investments valued at $33,483,000[48] - The company has invested in short-term corporate and government bonds, classified as held-to-maturity and available-for-sale, to support strategic growth initiatives[47] Financial Position - Total assets as of December 31, 2025, amounted to $833,961,000, an increase from $826,139,000 as of September 30, 2025[88] - Cash and cash equivalents at the end of the period were $93,567,000, a decrease from $171,999,000 at the end of Q4 2024[23] - The company's receivables as of December 31, 2025, were $97,178,000, down from $98,815,000 as of September 30, 2025, indicating a decrease of approximately 1.66%[45] - Deferred revenue decreased to $88,580,000 as of December 31, 2025, from $91,525,000 as of September 30, 2025, reflecting a reduction of about 3.19%[45] Debt and Liabilities - Total debt increased from $87,390,000 on September 30, 2025, to $101,687,000 on December 31, 2025, reflecting an increase of approximately 16.3%[63] - Total lease liabilities as of December 31, 2025, were $191,738, with current lease liabilities of $18,582[59] - The company made payments of $20,000,000 on the Credit Facility during the three months ended December 31, 2025, while receiving proceeds of $35,000,000[66] - As of December 31, 2025, the remaining availability under the Credit Facility was $70,400,000, with a sub-facility for letters of credit of $400,000[66] Operational Efficiency - The company centralized operations in accounting, finance, IT, HR, and real estate to enhance efficiency and support growth initiatives[35] - The company operates 15 campuses under Universal Technical Institute and 18 campuses under Concorde Career Colleges, focusing on hands-on learning models[27][28] - New campus locations signed for lease agreements include UTI Salt Lake City, Concorde Atlanta, and Concorde Houston, expected to open in fiscal 2027[56] Compliance and Risk Management - The company continues to comply with applicable regulations and maintains accreditation with recognized accrediting bodies as of December 31, 2025[90] - The effective income tax rate for the three months ended December 31, 2025, was 20.9%, compared to 19.5% for the same period in 2024[79] - The company is subject to customary covenants under the Revolving Credit Facility and Term Loans, and as of December 31, 2025, was in compliance with all financial debt covenants[70] - There have been no material changes in market risk exposure during the three months ended December 31, 2025[157]

Financial Data and Key Metrics Changes - Revenue for the first quarter grew 10% to $221 million compared to the previous year [4][6] - Baseline adjusted EBITDA was nearly $35 million, including over $7 million in growth investments, while reported adjusted EBITDA was $27 million [5][6] - Consolidated net income for the first quarter was $12.8 million, or $0.23 per diluted share [21] - Total available liquidity at the end of the quarter was $233.2 million [21] Business Line Data and Key Metrics Changes - Average full-time active students increased 7.2% year-over-year to 26,858, with total new student starts increasing 2.6% to 5,449 [18][21] - The Concorde division saw a 9.5% increase in average full-time active students, driven by demand in nursing and allied health [18][21] - The UTI division grew average full-time active students by 5.7% year-over-year, reflecting strong program demand and optimized campus utilization [18][21] Market Data and Key Metrics Changes - The company expects revenue for fiscal 2026 to be between $905 million and $915 million, reflecting approximately 9% year-over-year growth at the midpoint [6][22] - New student starts are anticipated to be between 31,500 and 33,000 for the fiscal year [22] Company Strategy and Development Direction - The company is focused on executing its North Star strategic plan, which includes launching new campuses and expanding programs [4][8] - Plans to open a minimum of two and up to five new campuses annually, pending regulatory approval [9][11] - The company aims to launch between 12 and 20 new programs annually across its divisions, with over 20 programs planned for this year [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and the execution of its growth strategy, citing strong market demand for graduates [15][17] - The regulatory environment is seen as favorable, with active participation in discussions that could accelerate workforce development initiatives [16] - Management anticipates continued growth in the skilled trades sector, driven by increasing awareness of the need for tradespeople [114][116] Other Important Information - The company is navigating a profitability dip due to growth investments but expects margins to improve as these investments yield results [57][83] - The company reiterated its adjusted free cash flow expectations for fiscal 2026 to be in the range of $20 million to $25 million [71][72] Q&A Session Summary Question: Insights on UTI and Concorde student starts - Management confirmed that UTI starts were expected to perform better due to increased marketing efforts, while Concorde starts were flat due to high comparisons from the previous year [32][34] Question: CapEx expectations - Management reiterated expectations of approximately $100 million in capital expenditures for the year, with a significant portion allocated to growth initiatives [44][22] Question: Heartland Fort Myers campus funding - The campus will operate similarly to other campuses, with options for government loans and cash pay, following the removal of previous growth restrictions [54] Question: Margin pressures in Concorde - The decline in EBITDA margins is attributed to growth investments, with no structural issues affecting profitability [57][82] Question: Confidence in start reacceleration - Management indicated that momentum is building with new programs and campuses opening, contributing to expected growth in student starts [61][62] Question: Acquisition opportunities - Management noted limited acquisition opportunities in the current environment, as many operators are not looking to exit the market [119]

Financial Data and Key Metrics Changes - Revenue for the first quarter grew 10% to $221 million compared to the previous year [4][5] - Baseline adjusted EBITDA was nearly $35 million, including over $7 million in growth investments, while reported adjusted EBITDA was $27 million [5][6] - Consolidated net income for the first quarter was $12.8 million, or $0.23 per diluted share [21] - Total average full-time active students grew 7.2% year-over-year to 26,858, with total new student starts increasing 2.6% to 5,449 [18][21] Business Line Data and Key Metrics Changes - The Concorde division generated a 9.5% increase in average full-time active students, driven by demand in nursing and allied health [18][21] - The UTI division grew average full-time active students by 5.7% year-over-year, reflecting strength across its program suite and employer demand [18][21] - Revenue from the Concorde division was $78 million, an increase of 11.5%, while the UTI division contributed $142.8 million, an increase of 8.6% [21] Market Data and Key Metrics Changes - Average full-time active students increased by 7%, with new student starts growing roughly 3% year-over-year, aligning with market expectations [6] - The company anticipates total new student starts to be between 31,500 and 33,000 for the fiscal year [24] Company Strategy and Development Direction - The company is executing its North Star strategic plan, focusing on disciplined growth through new campus launches and program expansions [4][8] - Plans to open a minimum of 2 and up to 5 new campuses annually, with the first fiscal 2026 campus already opened in Fort Myers, Florida [9][11] - The company aims to launch between 12 and 20 new programs annually across its divisions, with over 20 programs planned for this year [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal 2026 revenue guidance of $905 million to $915 million, reflecting approximately 9% year-over-year growth [6][22] - The company is focused on delivering strong student and employer outcomes, which have been a cornerstone of its operations for over 60 years [7] - Management noted that while growth investments may lead to short-term margin pressure, they are essential for long-term value creation [23][25] Other Important Information - Total available liquidity at the end of the quarter was $233.2 million, including $69.2 million of short-term investments [21] - The company expects adjusted EBITDA to exceed $150 million, including approximately $40 million in growth investments [23][25] Q&A Session Summary Question: Insights on UTI and Concorde student starts - Management confirmed that UTI starts were expected to perform better due to increased marketing efforts, while Concorde starts were flat due to a high comparison base from the previous year [32][34] Question: CapEx expectations - The company reiterated a full-year CapEx expectation of around $100 million, with a significant portion allocated to growth investments [44][46] Question: Heartland Fort Myers campus funding - The campus will operate similarly to other campuses, with options for government loans and Pell Grants now available [54] Question: Margin pressure in Concorde - The decline in EBITDA margins was attributed to growth investments, with no structural issues affecting profitability [57] Question: Confidence in start acceleration - Management indicated that momentum is building with new programs and campuses opening, contributing to expected growth in student starts [61][62] Question: Updated thoughts on acquisitions - Management noted limited acquisition opportunities in the current environment, as many operators are not looking to exit the market [119]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 grew 10% year-over-year to $221 million, with adjusted EBITDA reported at $27 million [5][20] - Average full-time active students increased by 7.2% year-over-year to 26,858, while new student starts rose by 2.6% to 5,449 [18][20] - Consolidated net income for Q1 was $12.8 million, or $0.23 per diluted share, with total available liquidity at $233.2 million [20][21] Business Line Data and Key Metrics Changes - The Concorde division saw a 9.5% increase in average full-time active students, driven by demand in nursing and allied health, while the UTI division grew by 5.7% [19] - Concorde contributed $78 million to revenue, an increase of 11.5%, while UTI contributed $142.8 million, an increase of 8.6% [20] Market Data and Key Metrics Changes - The company anticipates new student starts for the full year to be between 31,500 and 33,000, with low-to-mid double-digit growth expected in Q2 [24] - The company is planning to open 2 to 5 new campuses annually, with the first of fiscal 2026 campuses already opened in Fort Myers, Florida [9][11] Company Strategy and Development Direction - The company is executing its North Star strategic plan, focusing on disciplined growth through new campus launches and program expansions [7][17] - Plans include launching between 12 and 20 new programs annually across UTI and Concorde divisions, with over 20 programs expected to launch this year [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and growth strategy, highlighting strong demand for skilled trades and the importance of addressing workforce shortages [15][16] - The company expects revenue for fiscal 2026 to be between $905 million and $915 million, reflecting approximately 9% year-over-year growth [5][22] Other Important Information - The company is actively participating in regulatory discussions to foster opportunities for workforce development and is exploring inorganic growth opportunities to enhance its healthcare portfolio [16][17] - Capital expenditures for the year are expected to be around $100 million, with a significant portion allocated to growth investments [22][24] Q&A Session Summary Question: Insights on consolidated starts and UTI marketing efforts - Management confirmed that consolidated starts were in line with expectations, with stronger growth on the UTI side due to increased marketing efforts [32][34] Question: CapEx expectations and growth investments - Management reiterated expectations of $100 million in CapEx for the year, with a significant portion focused on growth initiatives [42][43] Question: Heartland Fort Myers campus funding structure - The campus will operate similarly to other campuses, with options for government loans and cash pay, following the removal of growth restrictions [53] Question: Margin pressure in the Concorde division - The decline in EBITDA margins is attributed to growth investments, with expectations for recovery as these investments yield results [56][57] Question: Confidence in reacceleration of starts - Management indicated that momentum is building, particularly with new programs and campuses opening, which should drive start growth in the upcoming quarters [61][62] Question: Updated thoughts on acquisitions - Management noted that while there are no new acquisitions to announce, they are in discussions and observing interest from potential partners [76][78]

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Core Viewpoint - Patterson-UTI Energy, Inc. reported its financial results for the quarter ending December 31, 2025, indicating significant developments in its operational performance and financial metrics [1]. Financial Performance - The company disclosed its earnings for the fourth quarter of 2025, highlighting key financial metrics that reflect its operational efficiency and market positioning [1]. - Specific figures regarding revenue, net income, and other financial indicators were provided, showcasing the company's performance relative to previous quarters [1]. Operational Highlights - The report included insights into the company's operational activities, including drilling and completion services, which are critical to its business model [1]. - The company emphasized its strategic initiatives aimed at enhancing operational capabilities and market share within the energy sector [1].