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1. Company Snapshot

1.a. Company Description

Universal Technical Institute, Inc.provides transportation and technical training programs in the United States.The company provides postsecondary education for students seeking careers as professional automotive, diesel, collision repair, motorcycle, and marine technicians.


It also offers certificate, diploma, or degree programs under various brands, such as Universal Technical Institute, Motorcycle Mechanics Institute and Marine Mechanics Institute, and NASCAR Technical Institute.In addition, the company provides manufacturer specific advanced training programs, including student paid electives at its campuses; and manufacturer or dealer sponsored training at various campuses and dedicated training centers, as well as offers programs for welding and computer numeric control machining.As of September 30, 2021, it operated 12 campuses.


Universal Technical Institute, Inc.was founded in 1965 and is headquartered in Phoenix, Arizona.

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1.b. Last Insights on UTI

Universal Technical Institute, Inc.'s recent performance was negatively impacted by increasing competition, as evident from the comparison with Perdoceo Education (PRDO). The company's upcoming fiscal fourth quarter and full-year 2025 conference call may provide insight into its strategy to address this competition. Additionally, investor sentiment was affected by institutional investors reducing their stakes in Patterson-UTI Energy, Inc. (PTEN), a company in a related sector. UTI's expansion of its UTI-Dallas campus with new programs may help mitigate these negative factors.

1.c. Company Highlights

2. UTI's Q1 Earnings: A Strong Start to 2026

Universal Technical Institute (UTI) reported a robust first quarter 2026 earnings, with revenue growing 10% to $221 million, driven by a 7% increase in average full-time active students and a 3% rise in total new student starts. The company's baseline adjusted EBITDA reached nearly $35 million, including over $7 million in growth investments, resulting in a reported adjusted EBITDA of $27 million. Earnings per share (EPS) came in at $0.23, beating estimates of $0.15. The company's financial performance was better than expected, and they are on target for the full year.

Publication Date: Feb -09

📋 Highlights
  • Revenue Growth:: Q1 revenue surged 10% to $221 million, outpacing initial expectations.
  • EBITDA Adjustments:: Baseline adjusted EBITDA reached $35 million, though reported EBITDA dropped to $27 million due to $7 million+ in growth investments.
  • Student Growth:: Average full-time active students rose 7%, with new student starts up 3% YoY, hitting ~31,500–33,000 for 2026 guidance.
  • CapEx Deployment:: $24 million in Q1 CapEx (24% of full-year $100 million target) focused on growth initiatives like new campuses.
  • Long-Term Targets:: Maintained 2029 goals of $1.2B+ revenue (10% CAGR) and $220 million adjusted EBITDA, with 2026 free cash flow of $20–25 million.

Operational Highlights

The company's North Star strategy is progressing on track, with a focus on execution, new campus launches, and program expansions. The recent opening of the Heartland Conquered co-branded campus in Fort Myers, Florida, and the upcoming launch of the UTI Atlanta location are expected to drive growth. UTI's growth was driven by investments in marketing, particularly in adult and high school programs. The company added high school representatives in the fall, which will start to bear fruit next fall.

Growth Initiatives and Capital Expenditures

UTI's CapEx spend was $24 million in Q1, about 24% of the full-year expectation of $100 million, with the majority related to growth initiatives. The company expects new campus openings, including San Antonio and Atlanta, to drive growth in the second quarter. EBITDA margins were slightly lower due to growth investments, but the underlying base business is expanding margins. The company expects margins to bounce back as the growth investments pay off.

Valuation and Outlook

With a P/E Ratio of 25.94 and an EV/EBITDA of 13.94, the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 8.2%. The company's long-term financial framework remains unchanged, targeting revenue of more than $1.2 billion by fiscal 2029, with a 10% revenue CAGR, and adjusted EBITDA approaching $220 million. The macro backdrop for trade schools has improved, with increasing demand for tradespeople and a growing awareness of the importance of alternative education.

Regulatory Environment and Acquisitions

The company is not concerned about potential regulatory changes and expects to continue growing regardless of the administration. On acquisitions, UTI has been focused on executing its aggressive plan and is open to opportunities but is not actively pursuing acquisitions at this time.

3. NewsRoom

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First Eagle Small Cap Opportunity Fund Q4 2025 Portfolio Review

Feb -19

Source: seekingalpha.com

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EDU or UTI: Which Is the Better Value Stock Right Now?

Feb -19

Source: zacks.com

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Navellier & Associates Inc. Purchases 32,134 Shares of Universal Technical Institute Inc $UTI

Feb -10

Source: defenseworld.net

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Patterson-UTI: Choosing Cash Flow Over Expansion Into Data Centers

Feb -09

Source: seekingalpha.com

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Patterson-UTI Reports Drilling Activity for January 2026

Feb -06

Source: accessnewswire.com

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Patterson-UTI Energy Q4 Loss Narrower Than Expected, Revenues Beat

Feb -05

Source: zacks.com

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Universal Technical Institute, Inc. CEO Jerome Grant Highlights Skilled Collar and Healthcare Workers' Contributions to the American Economy

Feb -05

Source: prnewswire.com

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Universal Technical Institute, Inc. (UTI) Q1 2026 Earnings Call Transcript

Feb -05

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.74%)

6. Segments

UTI

Expected Growth: 8.5%

UTI's 8.5% growth driven by increasing demand for skilled technicians in the automotive and industrial sectors, expansion of employer partnerships, and strategic investments in online and hybrid programs, enhancing student experience and improving operational efficiency.

Concorde

Expected Growth: 9.33%

Concorde's 9.33% growth is driven by increasing demand for skilled technicians in the healthcare industry, strategic campus expansions, and effective marketing efforts. Additionally, the company's focus on providing specialized training programs in high-growth fields such as nursing and dental assisting contributes to its growth momentum.

7. Detailed Products

Automotive Technician Training

Universal Technical Institute, Inc. offers a comprehensive training program for aspiring automotive technicians, providing hands-on training and classroom instruction to prepare students for a career in the automotive industry.

Diesel and Industrial Technician Training

This program provides training in diesel engine repair, heavy equipment operation, and industrial equipment maintenance, preparing students for a career in the diesel and industrial industries.

Collision Repair and Refinish Technician Training

This program teaches students the skills needed to repair and refinish vehicles, including metalworking, welding, and painting techniques.

Motorcycle Technician Training

This program provides training in motorcycle repair and maintenance, including brake systems, suspension, and engine repair.

Nissan Technician Training

This program provides training in Nissan-specific vehicle systems, including engine management, transmission, and brake systems.

Ford FACT Technician Training

This program provides training in Ford-specific vehicle systems, including engine management, transmission, and brake systems.

8. Universal Technical Institute, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Universal Technical Institute, Inc. faces moderate threat from substitutes, as students have alternative options for technical education and training.

Bargaining Power Of Customers

Customers have limited bargaining power due to the specialized nature of technical education and training provided by Universal Technical Institute, Inc.

Bargaining Power Of Suppliers

Suppliers of equipment and materials have limited bargaining power due to the company's large scale of operations and diversified supply chain.

Threat Of New Entrants

The technical education and training industry is highly competitive, and new entrants can easily enter the market, posing a significant threat to Universal Technical Institute, Inc.

Intensity Of Rivalry

The technical education and training industry is highly competitive, with many established players, leading to a high intensity of rivalry among competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 60.74%
Debt Cost 4.05%
Equity Weight 39.26%
Equity Cost 9.99%
WACC 6.38%
Leverage 154.72%

11. Quality Control: Universal Technical Institute, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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American Public Education

A-Score: 5.9/10

Value: 6.0

Growth: 5.6

Quality: 8.6

Yield: 2.0

Momentum: 7.0

Volatility: 6.3

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American Public Education

A-Score: 4.9/10

Value: 5.0

Growth: 5.6

Quality: 5.9

Yield: 0.0

Momentum: 9.5

Volatility: 3.3

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Universal Technical Institute

A-Score: 4.7/10

Value: 4.1

Growth: 7.0

Quality: 6.2

Yield: 0.0

Momentum: 7.5

Volatility: 3.7

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Lincoln Educational Services

A-Score: 4.4/10

Value: 4.2

Growth: 5.0

Quality: 4.1

Yield: 0.0

Momentum: 9.0

Volatility: 4.0

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Coursera

A-Score: 4.1/10

Value: 7.5

Growth: 6.0

Quality: 2.9

Yield: 0.0

Momentum: 6.0

Volatility: 2.3

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Udemy

A-Score: 3.6/10

Value: 5.0

Growth: 5.7

Quality: 5.6

Yield: 0.0

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

30.57$

Current Price

30.57$

Potential

-0.00%

Expected Cash-Flows