Financial Data and Key Metrics Changes - For fiscal year 2025, revenue reached $836 million, representing a 14% year-over-year growth, exceeding the raised guidance range [5][19] - Adjusted EBITDA for the year was $126.5 million, after strategic growth investments of $6.5 million [5][20] - Average full-time active students increased by 10.5% to 24,618, with new student starts rising by 10.8% to 29,793 [17] Business Line Data and Key Metrics Changes - The Concorde division saw a 14.5% increase in both average full-time active students and new student starts for fiscal 2025 [17] - The UTI division experienced an 8% increase in average full-time active students and a 7.9% growth in new student starts [17] Market Data and Key Metrics Changes - The demand for skilled trades and healthcare careers remains strong, with average full-time active students rising more than 10% [5] - New student starts are expected to range between 31,500 and 33,000 for fiscal 2026, driven by healthy demand trends [10] Company Strategy and Development Direction - The company is in the second phase of its North Star strategy, focusing on growth, diversification, and optimization, with plans to open three new campuses in fiscal 2026 [8][9] - Approximately 20 new programs are expected to launch across both divisions in fiscal 2026, aligned with employer demand [9][10] - The company anticipates generating over $1.2 billion in annual revenue and approaching $220 million in adjusted EBITDA by fiscal 2029 [13][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational and financial position of the company, highlighting strong demand for education in skilled trades [21] - The company expects fiscal 2026 to be a year of investment and expansion, with revenue projected between $905 million and $915 million [9][21] - Management noted that the growth story is not linear, with fiscal 2026 and 2027 being build years, and significant returns expected in fiscal 2028 and beyond [11][24] Other Important Information - The company faced temporary delays in cash disbursements due to the Department of Education's verification process, but this is not expected to have long-term impacts [20][34] - Total available liquidity at the end of the quarter was $254.5 million, including short-term investments and remaining capacity on the revolving credit facility [20] Q&A Session Summary Question: What are the expectations for start growth in 2026 between UTI and Concorde segments? - Management expects roughly 8-9% start growth for 2026, similar to the previous year [29][30] Question: Can you clarify the campus openings? - The company plans to open between two and five campuses annually across both divisions [32] Question: What impact has the Department of Education's ID verification measures had on productivity? - Management reported no impact on front-end productivity, with only temporary cash collection delays [34] Question: How did high school recruiting efforts perform compared to expectations? - High school recruiting met expectations, with plans to add resources for 2026 [37][38] Question: What are the tuition increase expectations for 2026? - The company anticipates a 2-3% price increase, varying by program and market [39][40] Question: Can you clarify the expectations for adjusted EBITDA growth starting in 2027? - Marginal growth in adjusted EBITDA is expected over 2026 numbers, with significant growth anticipated in 2028 and 2029 [46] Question: What is the revenue potential of the new campuses once scaled? - Salt Lake City is expected to generate $40 million-$45 million in revenue, while Concorde campuses are projected to bring in $20 million-$25 million [51][52][54]

Financial Data and Key Metrics Changes - For fiscal year 2025, revenue reached $836 million, representing a 14% year-over-year growth, exceeding the raised guidance range [5][17] - Adjusted EBITDA for the year was $126.5 million, after strategic growth investments of $6.5 million [5][17] - Consolidated net income for the fourth quarter was $18.8 million, or $0.34 per diluted share, and for the full year, it was $63 million, or $1.13 per diluted share [17][18] Business Line Data and Key Metrics Changes - The Concorde division saw a 14.5% increase in both average full-time active students and new student starts for fiscal 2025 [16] - The UTI division experienced an 8% increase in average full-time active students and a 7.9% growth in new student starts [16] - Average full-time active students for the full year increased by 10.5% to 24,618, while new student starts rose by 10.8% to 29,793 [16] Market Data and Key Metrics Changes - The demand for skilled trades and healthcare careers remains strong, with new student starts expected to range between 31,500 and 33,000 for fiscal 2026 [10][20] - The company plans to open three new campuses in fiscal 2026, expanding its reach in fast-growing metropolitan areas [8][9] Company Strategy and Development Direction - The company is in the second phase of its North Star strategy, focusing on growth, diversification, and optimization, with plans to launch approximately 20 new programs in fiscal 2026 [4][9] - The operational priorities for fiscal 2026 include expanding campus footprint, launching new programs at scale, and growing the student base while maintaining quality [8][10] - The company anticipates generating over $1.2 billion in annual revenue and approaching $220 million in adjusted EBITDA by fiscal 2029 [13][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's operational and financial position, indicating that fiscal 2026 will be a year of investment and expansion [14][20] - The company expects revenue growth to average about 10% over the next several years, with strategic investments leading to margin expansion starting in 2027 [12][24] - Management noted that the demand for skilled trades is intensifying, with significant opportunities in various sectors [46][50] Other Important Information - The company faced temporary delays in cash disbursements due to the Department of Education's verification process, but this is expected to normalize soon [19][29] - The company plans to invest approximately $100 million annually in capital expenditures to support campus growth and modernization [24][23] Q&A Session Summary Question: What are the expectations for start growth in 2026 between UTI and Concorde segments? - Management expects roughly 8-9% start growth for 2026, similar to the previous year [27] Question: Clarification on campus openings? - The company clarified that the expectation is to open between two and five campuses annually across both divisions [28] Question: Impact of Department of Education's ID verification measures? - Management confirmed no impact on front-end productivity, with only temporary delays in cash collection [29] Question: How did high school recruiting efforts perform? - High school recruiting met expectations, with plans to add resources for 2026 [30] Question: Tuition increases for 2026? - The company anticipates a 2-3% price increase, varying by program and market [32] Question: Revenue potential of new campuses? - Salt Lake City is expected to generate $40-45 million in revenue at peak, similar to Atlanta [38][42] Question: Employment trends across programs? - Demand for graduates remains strong, with no signs of slowdown in employment opportunities [46]

Core Insights - Universal Technical Institute, Inc. reported exceptional financial results for fiscal year 2025, exceeding guidance in revenue, net income, adjusted EBITDA, diluted EPS, and new student starts, with a 14% year-over-year revenue growth [2][6][8] - The company is entering a new growth phase, planning to open 2 to 5 new campuses and launch approximately 20 new programs annually across its divisions [3][8] Financial Performance - Fiscal 2025 revenue reached $835.6 million, a 14% increase from the previous year, while net income rose by 50% to $63.0 million [6][8] - Adjusted EBITDA for the year was $126.5 million, reflecting a 22.9% increase year-over-year [6][8] - Average full-time active students increased by 10.5% to 24,618, with new student starts totaling 29,793, up 10.8% from the prior year [8] Operational Highlights - The company achieved double-digit increases in both average full-time active students and new student starts, indicating strong demand for its programs [6][8] - The North Star strategy is in its second phase, focusing on scalable growth and maintaining high-quality education [2][3] Future Outlook - For fiscal 2026, the company expects revenue between $905 million and $915 million, representing approximately 9% growth year-over-year [7][8] - Adjusted EBITDA is projected to exceed $150 million, with reported adjusted EBITDA expected between $114 million and $119 million, accounting for growth investments [7][8] - By fiscal 2029, the company anticipates surpassing $1.2 billion in annual revenue and approaching $220 million in adjusted EBITDA [7][8] Balance Sheet and Liquidity - As of September 30, 2025, total available liquidity was $254.5 million, including $127.4 million in cash and cash equivalents [5][8] - Total debt stood at $87.1 million, with $42.0 million in cash capital expenditures primarily for program expansions and facility improvements [5][8]

Core Points - Universal Technical Institute, Inc. will hold a conference call on November 19, 2025, at 4:30 p.m. Eastern time to discuss its financial and operational results for the fiscal fourth quarter and full year ended September 30, 2025 [1][2] - The conference call will be hosted by CEO Jerome Grant and CFO Bruce Schuman, followed by a question-and-answer session [2] - A telephonic replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through December 3, 2025 [3] Company Overview - Universal Technical Institute, Inc. is a leading workforce solutions provider founded in 1965, serving students, partners, and communities nationwide [3] - The company operates two divisions: UTI and Concorde Career Colleges, offering high-quality education and support services for in-demand careers [3] - UTI operates 15 campuses in nine states, providing training programs in transportation, skilled trades, electrical, and energy sectors, while Concorde operates across 17 campuses in eight states and online, focusing on allied health, dental, nursing, patient care, and diagnostic fields [3]

Core Insights - Concorde Career Colleges is relocating its Aurora campus to Denver as part of Universal Technical Institute's North Star strategy to address the skilled workforce gap in America [1][2] - The new Denver campus will occupy 60,000 square feet and is expected to enhance the learning experience with expanded programming and facilities [1][3] Company Overview - Concorde Career Colleges operates 17 campuses across eight states and focuses on preparing healthcare and dental professionals through a blended education model [5] - The institution is accredited by the Accrediting Commission of Career Schools and Colleges (ACCSC) and the Council on Occupational Education (COE) [5] Industry Context - There is a significant demand for skilled healthcare professionals in Colorado, with projected job growth rates of 13% for dental hygienists and practical nurses, and 17% for radiologic technologists from 2022 to 2032 [3][4] - The relocation to a larger facility is aimed at meeting local employer needs and enhancing student outcomes in high-demand healthcare fields [2][3]

Core Insights - Universal Technical Institute, Inc. (UTI) is celebrating its 60th anniversary in workforce education, marking a significant milestone in its history [1][3] - The company has transformed from a small training program with five students to a multi-division leader in workforce education, educating tens of thousands of students annually [3] - UTI's North Star strategy, initiated in 2020, focuses on growth, diversification, and optimization to address the demand for skilled workers in the U.S. [3][5] Company Developments - UTI acquired MIAT College of Technology in 2021, expanding its offerings to include aviation, energy, and robotics [4] - The acquisition of Concorde Career Colleges in 2022 allowed UTI to enter the healthcare education sector, focusing on dental, nursing, and allied health programs [4] - The company reported strong financial results for Q2 of fiscal 2025 and raised its guidance for FY 2025, indicating operational outperformance [5] Leadership Statements - CEO Jerome Grant emphasized the company's successful transformation and its commitment to enhancing shareholder value through improved student outcomes and employer satisfaction [3] - Grant expressed confidence in UTI's market position and its ability to reach more students in new geographies as a result of the North Star strategy [5]