Financial Performance and Guidance - FY2025 revenue guidance is \$830 million to \$835 million[7] - FY2025 net income guidance is \$56 million to \$60 million[7] - FY2025 adjusted EBITDA guidance is \$124 million to \$128 million[7] - The "North Star Strategy Phase II" aims to achieve over \$1 billion in yearly revenue and approach \$200 million in adjusted EBITDA by fiscal year 2029[7] Expansion and Growth Strategy - The company plans to launch a minimum of six programs annually at existing campuses beginning in fiscal year 2025[47] - The company plans to open at least two new campuses each year between fiscal years 2026 and 2029[47] - The company is executing a multifaceted approach to expansion, including program expansions, new campuses, and optimized models[25, 26] Division Performance (FY2024) - UTI Division revenue was \$486 million with approximately 14,000 average students[12] - UTI Division adjusted EBITDA was \$104 million, representing a 21.4% margin[53] - Concorde Division revenue was \$246 million with approximately 8,000 average students[12] - Concorde Division adjusted EBITDA was \$28 million, representing an 11.5% margin[62]

Core Insights - Universal Technical Institute (UTI) is expanding its HVACR program by enrolling students at two new campuses in California and Florida, part of a broader initiative to launch eight new programs in 2025 [1][2] - The nine-month HVACR program is available at campuses across seven states, focusing on essential skills for heating, air conditioning, and refrigeration systems in both residential and commercial settings [2][3] - UTI's growth strategy, known as the North Star Strategy, aims to address the increasing demand for trained workers in HVACR, with job growth projected to be significantly faster than average over the next eight years [3] Company Overview - Universal Technical Institute, Inc. (NYSE: UTI) was established in 1965 and serves as a leading workforce solutions provider, offering education and support services for in-demand careers through its UTI and Concorde Career Colleges divisions [5] - The UTI division operates 15 campuses in nine states, providing a variety of training programs in transportation, skilled trades, electrical, and energy sectors [5]

Summary of Universal Technical Institute (UTI) FY Conference Call - June 11, 2025 Company Overview - **Company**: Universal Technical Institute (UTI) - **Industry**: Educational Services, specifically focused on skilled trades and healthcare training - **Current Operations**: 32 campuses with approximately 30,000 students enrolled [5][6] Core Points and Arguments - **Graduation and Employment Rates**: UTI boasts a graduation rate of 70%, significantly higher than the 30% average of community colleges. Additionally, 80% of graduates find employment within one year [6][7] - **Financial Guidance**: UTI has raised its revenue guidance for the year to between $825 million and $835 million, with a net income forecast of $56 million to $60 million. Adjusted EBITDA is projected at approximately $126 million [7][8][29] - **Growth Trajectory**: Since 2019, UTI has grown from $300 million in revenue with no EBITDA to an expected mid-$800 million range with $126 million in EBITDA [8] - **Market Demand**: There are four job openings for every UTI graduate and five to ten job openings for every Concord Career College graduate, indicating a strong demand for skilled workers [10][52] - **Strategic Focus**: UTI aims to expand its nursing programs and has a strong focus on areas where the supply-demand gap for workers is significant [9][10] Financial Performance and Projections - **Revenue Growth**: UTI anticipates a 13% year-over-year revenue growth for FY 2025, with a midpoint guidance of $830 million [29] - **Profitability**: Expected net income growth of 38% year-over-year, with adjusted EBITDA growth of 22% [30] - **Capital Expenditures**: A significant investment of $55 million in CapEx is planned for 2025 to support the opening of new campuses and program expansions [31][33] Strategic Initiatives - **North Star Strategy**: UTI's strategy focuses on growth, diversification, and optimization, with plans to open at least two new campuses and six new programs annually [24][25] - **Marketing Optimization**: UTI has shifted to a more focused marketing strategy, enhancing local marketing and admissions optimization [18] - **Partnerships with Industry**: UTI has established partnerships with 6,000 employers to facilitate job placements for graduates, enhancing the value proposition for students [55][58] Regulatory Environment - **Government Support**: A favorable regulatory environment is noted, with potential for increased federal funding directed towards trade schools, which could positively impact UTI [35][36] - **Student Support**: Recommendations for more direct support for students through loan programs and Pell Grants to encourage enrollment in trade programs [39][40] Additional Insights - **Capacity Utilization**: UTI operates at 40% capacity, allowing for significant growth potential without immediate concerns about overcapacity [43] - **Job Market Dynamics**: The company emphasizes the ongoing demand for skilled workers, particularly in healthcare and skilled trades, which is expected to grow over the next 15 years [11][12] - **Certification Preparation**: UTI prepares students for industry certifications, with high pass rates, although it does not guarantee certification outcomes [59][60] Conclusion - UTI is positioned for continued growth in the educational services sector, particularly in skilled trades and healthcare, supported by strong market demand, strategic initiatives, and a favorable regulatory environment. The company is focused on optimizing its operations and expanding its reach to meet the growing needs of the workforce.

Financial Data and Key Metrics Changes - Revenue for Q2 2025 increased nearly 13% year over year to $207.4 million [11][26] - Average full-time active students grew over 10% year over year to 24,604 students [11][25] - New student starts grew more than 21% year over year to 6,650 starts [11][25] - Net income increased 47% to $11.4 million with diluted earnings per share of $0.21 [11][27] - Adjusted EBITDA grew approximately 28% year over year to $28.9 million [11][27] Business Line Data and Key Metrics Changes - Concord division saw a 15.5% increase in average full-time active students and a 15.9% rise in new student starts year over year [25] - UTI division generated a 7% increase in average full-time active students and a 26.4% growth in new student starts year over year [26] Market Data and Key Metrics Changes - Demand for skilled labor, particularly in trades and healthcare, continues to strengthen, creating a favorable environment for the company [10][60] - The ongoing supply and demand imbalance in critical sectors is generating additional tailwinds for the business [10] Company Strategy and Development Direction - The company is committed to growth, diversification, and optimization as part of its North Star strategy [34] - Plans to launch at least six new programs each year and open at least two new campuses annually starting in fiscal 2026 [22] - The company is raising its fiscal 2025 guidance, anticipating consolidated revenue between $825 million and $835 million [19][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite regulatory changes and macroeconomic uncertainties [9][10] - The company is well-positioned to accelerate growth in its Concord and UTI divisions [9] - Management highlighted the importance of maintaining strong communication with the Department of Education [9][84] Other Important Information - The company is expanding its program offerings, including new nursing programs and skilled trades programs [13][18] - The company has recently appointed a new CFO and COO to support its growth strategy [20][21] Q&A Session Summary Question: Any campuses or programs to highlight for strong new starts? - Management noted increased marketing investment in healthcare and strong performance in clinical courses, as well as growth in skilled trades programs [41][42] Question: How does enrollment growth break out for UTI and Concord in Q3 and Q4? - Management indicated that growth rates may become challenging for Concord due to capacity limits, while UTI is focusing on high school populations [46][47] Question: Can you comment on trends in employer demand for graduates? - Management reported steady demand for transportation graduates and increasing demand for skilled trades and healthcare professionals [56][59] Question: What are the plans for marketing spend? - Management plans to continue investing in marketing, particularly in areas showing good ROI [68] Question: What could go wrong in achieving the low end of guidance? - Management expressed confidence in the guidance but acknowledged potential challenges in maintaining double-digit growth rates in the upcoming quarters [86]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 increased nearly 13% year over year to $207.4 million [10][24] - Average full-time active students grew over 10% year over year to 24,604 students [10][22] - New student starts grew more than 21% year over year to 6,650 starts [10][22] - Net income increased 47% to $11.4 million with diluted earnings per share of $0.21 [10][24] - Adjusted EBITDA grew approximately 28% year over year to $28.9 million [10][24] Business Line Data and Key Metrics Changes - Concord division revenue increased 20.3% year over year to $73.2 million, with average full-time active students up 15.5% [23] - UTI division revenue increased 8.8% year over year to $134.2 million, with average full-time active students up 7% [23] Market Data and Key Metrics Changes - Demand for skilled labor, particularly in trades and healthcare, continues to strengthen, creating a favorable environment for the company's growth [8][9] - The ongoing supply and demand imbalance in critical sectors is generating additional tailwinds for the business [8] Company Strategy and Development Direction - The company is committed to growth, diversification, and optimization as part of its North Star strategy, with plans to launch at least six new programs each year and open at least two new campuses annually starting in fiscal 2026 [20][31] - The company is raising its fiscal 2025 guidance, expecting consolidated revenue between $825 million and $835 million, reflecting approximately 13% year-over-year growth [17][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite regulatory uncertainties and macroeconomic conditions [7][10] - The company is well-positioned to capitalize on the increasing demand for skilled trades and healthcare professionals [18][31] Other Important Information - The company has recently appointed a new CFO and COO to support its growth strategy [18][19] - The company is actively pursuing strategic acquisitions to enhance its educational reach and complement its portfolio, particularly in healthcare [31] Q&A Session Summary Question: Any campuses or programs to highlight for strong new starts? - Management noted that increased marketing investment in healthcare and strong performance in clinical courses contributed to new starts [36][37] Question: How does enrollment growth break out for UTI and Concord? - Management indicated that Concord is approaching capacity in clinical courses, while UTI is seeing strong demand in skilled trades [42][43] Question: What trends are observed in employer demand for graduates? - Management reported steady demand for transportation graduates and increasing demand for skilled trades and healthcare graduates [53][56] Question: What could go wrong in achieving the low end of guidance? - Management expressed confidence in the guidance but acknowledged potential challenges in maintaining double-digit growth rates in the upcoming periods [81][83]