This presentation contains forward-looking statements within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Forward-looking statements may contain words such as "goal," "target," "future," "estimate,""expect," "anticipate," "intend," "plan," "believe," "seek," "project," "may," "shou ...

Financial Performance - Revenue for Q1 FY2026 was $220.8 million, an increase of 9.6% compared to $201.4 million in Q1 FY2025[4] - Net income decreased to $12.8 million, down $9.3 million from $22.2 million in the prior year, primarily due to strategic growth expenses[5] - Adjusted EBITDA was $27.1 million, a decrease of 23.5% from $35.5 million in the same period last year, impacted by $7.6 million in strategic growth investments[5] - Revenues for the three months ended December 31, 2025, increased to $220,844 thousand from $201,429 thousand, representing a growth of 9.5% year-over-year[22] - Net income decreased to $12,827 thousand, down from $22,153 thousand, reflecting a decline of 42.2% compared to the same period last year[22] - Adjusted EBITDA for the three months ended December 31, 2025, was $27,148,000, compared to $35,505,000 for the same period in 2024, reflecting a decline of 23.5%[32] - Free cash flow for the three months ended December 31, 2025, was $(19,158,000), a significant decrease from $19,617,000 in the same period of 2024[33] - The company reported a net cash provided by operating activities of $3,084,000 for the three months ended December 31, 2025, down from $22,962,000 in 2024[33] Student Enrollment and Growth - Average full-time active students increased by 7.2% to 26,858, with total new student starts rising by 2.6% to 5,449[4] - Total new student starts for the quarter were 5,449, a year-over-year increase of 2.6%, with UTI showing a growth of 5.1%[28] - Average full-time active students rose to 26,858, marking a year-over-year growth of 7.2%[28] Operating Expenses - Operating expenses rose by 17.9% to $205.2 million, driven by growth in student numbers and strategic growth expenses[5] - Total operating expenses increased to $205,157 thousand from $173,951 thousand, a rise of 17.9% year-over-year[22] - Compensation and benefits expenses increased to $108,446,000 in Q4 2025, up from $94,767,000 in Q4 2024, marking a rise of 14.4%[31] - Advertising expenses rose to $25,206,000 in Q4 2025, compared to $21,228,000 in Q4 2024, an increase of 18.8%[31] - Depreciation and amortization expenses for the consolidated entity were $8,905,000 in Q4 2025, compared to $7,999,000 in Q4 2024, reflecting an increase of 11.3%[31] - Corporate support expenses were reported as $(26,757,000) in Q4 2025, indicating a significant increase in corporate costs compared to $(19,817,000) in Q4 2024[31] Financial Position - Total available liquidity as of December 31, 2025, was $233.2 million, including $93.6 million in cash and cash equivalents[8] - Total debt at the end of Q1 FY2026 was $101.4 million, with $35.0 million drawn on the revolving credit facility[8] - Total assets as of December 31, 2025, were $833,961 thousand, compared to $826,139 thousand as of September 30, 2025[25] Strategic Initiatives - The company plans to open four new campus locations, pending regulatory approvals[4] - The company is focused on addressing the skilled labor gap through partnerships and innovative pathways, enhancing its position as a workforce solutions provider[3] - The company centralized operations in accounting, finance, IT, HR, and real estate to enhance efficiency and support growth initiatives[29] Shareholder Information - The weighted average number of shares outstanding increased to 55,744 thousand from 55,406 thousand[22] - The company reported a provision for credit losses of $7,785 thousand, significantly higher than $2,101 thousand in the prior year[27] - The company incurred integration-related costs of $51,000 for completed acquisitions in Q4 2025, compared to $700,000 in 2024[32]

Core Insights - Universal Technical Institute (UTI) is expanding its operations by opening new campuses in Atlanta and San Antonio, scheduled for Summer 2026 and Spring 2026 respectively, pending regulatory approvals [1][2][3] Group 1: Campus Details - UTI-Atlanta will be the first campus in Georgia, featuring a 117,000 square foot facility that will offer training programs in automotive, diesel, aviation, electrical, robotics and automation, HVACR, and welding [2] - UTI-San Antonio will focus exclusively on skilled trades programs, with a 51,000 square foot facility offering training in aviation, welding, HVACR, and electrical training suites [3] Group 2: Accreditation and Enrollment - Both campuses have applied for accreditation from the Accrediting Commission of Career Schools and Colleges (ACCSC), which is recognized by the U.S. Department of Education [4] - Prospective students can begin the enrollment process through the UTI website [4] Group 3: Company Overview - Universal Technical Institute, founded in 1965, is a leading provider of workforce solutions, operating 17 campuses in 10 states under its UTI division, and 18 campuses in eight states under Concorde Career Colleges [5]

Core Insights - Patterson-UTI Energy, Inc. has secured a multi-year agreement to lease two APEX 1500 drilling rigs to DLS Archer Ltd. S.A, enhancing its international presence in the oil and gas sector [1][12][14] - The APEX 1500 rigs will support Archer's operations in the Vaca Muerta formation, a significant unconventional oil and gas reserve in Argentina [1][3][6] Expansion of International Footprint - The APEX 1500 rigs are part of Patterson-UTI's high-spec rig fleet in the U.S., designed for high-performance unconventional drilling projects [2][10] - The rigs will be mobilized to Argentina to assist Archer's contract with YPF S.A., the largest oil and gas company in Argentina [2][6] Vaca Muerta Formation - The Vaca Muerta formation is recognized for its vast reserves, attracting major oil and gas operators [3][7] - Patterson-UTI's provision of APEX 1500 rigs demonstrates its commitment to meeting the demand for advanced drilling solutions in Argentina's energy sector [3][5] Rig Mobilization and Operations Timeline - The APEX 1500 rigs are expected to begin operations by mid-2026, with Archer responsible for all costs related to rig preparation and mobilization [4][9] Strengthening Partnerships - The collaboration between Patterson-UTI and Archer aims to maximize operational efficiency and productivity in drilling operations [6][14] - The rigs will be part of Archer's broader seven-rig contract with YPF, marking a significant milestone for both companies [6][12] Technological Advancements - The APEX 1500 rigs are engineered for demanding drilling environments, featuring advanced automation systems that enhance safety and operational efficiency [10][11] - These technological advancements provide a competitive edge in drilling efficiency and cost management [11][15] Strategic Focus on International Growth - The agreement with Archer represents a strategic expansion of Patterson-UTI's international operations, prioritizing markets like Argentina [12][13] - This move aligns with Patterson-UTI's strategy to diversify revenue streams and enhance its global reach [13][15]

Group 1 - Patterson-UTI Energy, Inc. will host a conference call on February 5, 2026, at 9:00 a.m. [1]

Core Viewpoint - Patterson-UTI Energy, Inc. reported an average of 93 drilling rigs operating in the United States for December 2025 [1] Company Summary - The company is actively engaged in drilling operations, with a specific focus on the U.S. market [1]

Core Viewpoint - The comparison between McGraw Hill, Inc. (MH) and Universal Technical Institute (UTI) indicates that MH presents a better investment opportunity for value investors at this time due to its stronger earnings outlook and more attractive valuation metrics [1][3][7]. Valuation Metrics - MH has a forward P/E ratio of 10.12, significantly lower than UTI's forward P/E of 33.38, suggesting that MH is undervalued relative to UTI [5]. - The PEG ratio for MH is 1.56, while UTI's PEG ratio stands at 2.23, indicating that MH offers better value when considering expected earnings growth [5]. - MH's P/B ratio is 3.96 compared to UTI's P/B of 4.42, further supporting the notion that MH is more attractively valued [6]. Earnings Outlook - MH holds a Zacks Rank of 2 (Buy), reflecting positive revisions in earnings estimates, while UTI has a Zacks Rank of 5 (Strong Sell), indicating a less favorable earnings outlook [3][7]. - The stronger estimate revision activity for MH suggests an improving earnings outlook, making it a more appealing choice for investors [7].

Company Overview - Universal Technical Institute (UTI) is a leading provider of technical education, focusing on training for automotive, diesel, and related skilled trades, leveraging a national campus network and partnerships with manufacturers to deliver industry-aligned curricula [6] - As of November 13, 2025, UTI's stock price was $29.38, with a market capitalization of $1.60 billion, revenue of $835.62 million, and net income of $63.02 million [4][10] Financial Performance - UTI ended its 2025 fiscal year with revenue of $835.6 million, reflecting a strong 14% year-over-year increase, while net income rose to $63 million, representing a 50% year-over-year growth [10] - Despite strong fiscal performance, UTI's stock price declined due to anticipated net income drop of about 33% year-over-year for the 2026 fiscal year as the company invests in expanding its business [11] Investment Activity - Needham Investment Management LLC increased its position in UTI by 239,000 shares during the third quarter, raising its total stake to 550,000 shares valued at $17.90 million, a net increase of $7.36 million from the previous quarter [2][3] - The increased stake represents 1.2% of Needham's 13F reportable assets under management (AUM) [3] Market Performance - UTI shares have increased by 44.5% over the past year, outperforming the S&P 500 by 33.3 percentage points [3] - The stock price experienced a decline to a 52-week low of $21.29 in November, despite the company's strong revenue growth [7]

Core Viewpoint - Patterson-UTI Energy, Inc. reported an average of 93 drilling rigs operating in the United States for November 2025 [1] Company Summary - The company is actively engaged in drilling operations, with a specific focus on the U.S. market [1]

Education Institutions and Programs - Universal Technical Institute operates 15 campuses in nine states, while Concorde Career Colleges operates 17 campuses in eight states and online, focusing on transportation, skilled trades, and healthcare programs[16][17]. - Since acquiring Concorde in December 2022, the company has expanded partnerships in the healthcare market and completed 13 program expansions within Concorde's existing campuses[31]. - The company plans to launch a minimum of six new programs annually at existing campuses and open at least two new campuses each year between fiscal years 2026 and 2029[33]. - UTI has launched 23 new programs over the last three years and is constructing two new campuses expected to open in 2026[29]. - The blended learning model used by UTI combines online teaching with hands-on labs, increasing access and preparing students for modern technician roles[40]. - The blended learning model at Concorde combines online teaching with hands-on labs, increasing access and preparing students for lifelong learning[58]. - Concorde offers programs that culminate in diplomas or degrees, with tuition rates varying by program type and length[54]. - Concorde's programs are designed to prepare graduates for various healthcare-related employment opportunities across multiple campuses[59]. Job Market and Employment Opportunities - The U.S. Department of Labor estimates approximately 111,100 new job openings annually for technicians in automotive, diesel, and collision fields through 2034, with additional openings in skilled trades[21]. - The healthcare sector is projected to see an average of 1,286,700 new job openings annually through 2034, with significant demand for registered nurses and medical assistants[22][23]. - UTI has established relationships with multiple OEMs and industry partners to refine and expand its programs, enhancing employment opportunities for graduates[25][26]. - The company emphasizes maintaining effective career services to enhance graduate employment opportunities[66]. Financial Performance and Revenue - The average annual revenue per UTI student was approximately $35,100, net of scholarships or grants funded by the institution[52]. - The average annual revenue per Concorde student was approximately $30,000, net of scholarships or grants funded by the institution[62]. - Total new student starts for Concorde increased by 14.5% from 11,747 in 2024 to 13,454 in 2025[64]. - Average full-time active students at Concorde rose by 14.5% from 8,475 in 2024 to 9,705 in 2025[64]. - End of period full-time active students for Concorde grew by 11.2% from 9,747 in 2024 to 10,838 in 2025[64]. - In fiscal 2025, approximately 78% of the company's revenues were derived from Title IV Programs and various veterans' programs[100]. - The company received approximately 11% of its revenues from veterans' benefits programs in fiscal 2025[129]. Tuition and Financial Aid - UTI programs range in tuition from approximately $18,000 for the Wind Power Technician program to $69,000 for the Automotive and Diesel program[52]. - Tuition for Concorde programs ranged from approximately $1,000 for the Phlebotomy program to approximately $99,000 for the Dental Hygiene program[62]. - Approximately 58% of active UTI students received a UTI-funded scholarship or grant during the year ended September 30, 2025[52]. - Approximately 16% of Concorde's active students received a Concorde-funded scholarship or grant during the year ended September 30, 2025[62]. - Approximately 68% of Concorde's active students received funding through Concorde-sponsored retail installment contracts[62]. Regulatory Environment - The company is subject to extensive regulatory requirements imposed by federal and state agencies, affecting operations, educational programs, and financial conditions[80]. - The company holds state or SARA authorizations required to operate and offer post-secondary education programs in various states[85]. - The One Big Beautiful Bill Act, signed into law on July 4, 2025, includes provisions affecting eligibility for Title IV Programs based on compliance with earnings benchmarks[94]. - Institutions must maintain federal student loan cohort default rates below specified levels, with a threshold of 30% for consecutive fiscal years[110]. - The company must periodically renew its institutional and programmatic accreditations to maintain eligibility for Title IV Programs[87][93]. - The federal government provides substantial support for post-secondary education through Title IV Programs, including grants and loans[96]. - All institutions participating in Title IV Programs must comply with the 90/10 rule, with annual percentages of Federal education assistance funds ranging from approximately 67% to 82% as of September 30, 2025[106]. Challenges and Risks - The for-profit post-secondary education industry is highly competitive, with no single provider controlling significant market share[68]. - The company faces challenges in developing and integrating new programs to meet technological advancements, which could impair student retention and employment rates[182]. - The company is subject to competitive pressures from public and private institutions, which may offer lower tuition rates, affecting market share and enrollment[187]. - Changes to Title IV Programs by Congress could reduce student population, revenues, and profit margins due to potential funding restrictions[148]. - Loss of eligibility for veterans' benefits programs could materially affect operations and cash flows, with risks from legislative changes and compliance failures[149]. - Increased regulatory scrutiny of for-profit education institutions may lead to stricter legislation and negatively impact enrollment and financial condition[151]. - Compliance reviews and potential litigation from regulatory agencies could result in significant legal costs and affect financial condition and student enrollment[153]. Operational Strategies - The company’s "North Star strategy" focuses on growing the business by penetrating existing markets, diversifying offerings, and optimizing operational efficiency[28]. - The company relies on maintaining and expanding industry relationships to attract students and diversify funding sources; failure to do so could adversely affect financial performance[180]. - The company anticipates seeking new program and campus approvals for MIAT during fiscal 2026 after completing two years of audited financials under UTI ownership[137]. - The company must comply with restrictive covenants in debt arrangements; failure to do so could lead to an event of default and immediate repayment obligations[185]. - Future acquisitions may pose integration challenges, including regulatory approvals and capital expenditures, which could affect operating performance[175]. Student Management and Enrollment - The company is dependent on a reliable internal student management system; any issues with this system could disrupt services and negatively impact profitability[192]. - Seasonal fluctuations in student population can lead to revenue volatility, particularly with lower enrollments during the summer months[214]. - The effectiveness of marketing and advertising programs is crucial for recruiting new students, and failure in these efforts could materially impact financial performance[196]. Financial Liabilities and Compliance - The company has recorded total goodwill of $28.5 million as of September 30, 2025, resulting from acquisitions including the Motorcycle Mechanics Institute and Marine Mechanics Institute[208]. - The proprietary loan program allows students to borrow a portion of their tuition if they meet specific criteria, which could impact the company's results of operations if collection performance degrades[200]. - An increase in interest rates could raise the cost of servicing the company's debt, potentially reducing profitability and cash flows[199]. - The company may face significant repayment liability to the Department of Education (ED) if a large number of "borrower defense to repayment" claims are granted, potentially impacting financial condition and growth[169].