Operational Highlights
The company's operational performance was equally impressive, with student starts growing 15.7% in Q4 and 15.2% for the full year. Lincoln Tech's focus on skilled trades and automotive programs paid off, with these segments growing 23% in the quarter and year. The company's graduation rate declined to 67.5%, while its placement rate increased to 82.8%. As Scott Shaw, likely a senior executive, noted, "We're optimistic about our revenue growth, and we believe our numbers are achievable."
Guidance and Outlook
Lincoln Tech provided guidance for 2026, expecting revenue to grow to $580-590 million, adjusted EBITDA to reach $72-76 million, and net income to range from $20-23 million. The company anticipates continued growth in student starts, with a range of 8-13%. Analysts estimate revenue growth at 8.9% for next year, indicating a relatively stable growth trajectory.
Valuation and Metrics
Lincoln Tech's current valuation metrics include a P/E Ratio of 51.12, P/B Ratio of 5.12, and P/S Ratio of 2.02. The company's EV/EBITDA stands at 40.25, indicating a relatively high multiple. The ROE is 10.75%, and ROIC is 5.75%. The Net Debt / EBITDA ratio is 5.78, suggesting a significant debt burden. These metrics suggest that the market is pricing in strong growth expectations, and the company's ability to deliver on its guidance will be crucial in justifying its current valuation.