Summary of UTI Q2 2026 Earnings Call

1Key Financial Results and Metrics

Revenue: $221.4 million, up 6.7% year-over-year.

Net Income: $400,000, or $0.01 per diluted share.

Adjusted EBITDA: Baseline adjusted EBITDA of $25.1 million; reported adjusted EBITDA (including $11 million in growth investments) was $14.1 million.

New Student Starts: Increased 13.8% to 7,569; total average full-time active students grew 7.2% to 26,385.

Liquidity: Total available liquidity at quarter-end was $202.4 million.

2Strategic Updates and Business Highlights

Strong demand across both UTI and Concord divisions, with new student starts growing 14% year-over-year.

Successful campus launches, including UTI San Antonio exceeding expectations by 60% and a new campus in Atlanta set to open in July.

Continued execution of the North Star strategy, with plans to open 2-5 new campuses and launch 12-20 new programs annually.

Expansion of existing campuses and programs, including HVACR, aviation maintenance, and health care fields.

Focus on collaboration between UTI and Concord divisions to enhance operational efficiency and marketing strategies.

3Forward Guidance and Outlook

Fiscal 2026 Revenue Guidance: Expected to range from $905 million to $915 million, reflecting approximately 9% growth year-over-year.

Net Income Guidance: Anticipated to be between $40 million and $45 million, with diluted EPS of $0.71 to $0.80.

Adjusted EBITDA Guidance: Expected to exceed $150 million, with reported adjusted EBITDA projected at $114 million to $119 million.

New Student Starts: Forecasted to be between 31,500 and 33,000, with high single-digit growth anticipated in the remaining quarters.

4Bad News, Challenges, or Points of Concern

Operating expenses increased 16%, with growth investments contributing significantly to this rise, raising concerns about profitability in the short term.

Year-over-year contraction in net income and adjusted EBITDA expected in Q3, though improvement is anticipated in Q4.

Potential risks associated with shifting consumer behavior towards AI-driven platforms for student acquisition, necessitating adaptation in marketing strategies.

5Notable Q&A Insights

Job Market Dynamics: Jerome Grant highlighted a shift in demand for skilled trades due to AI and automation, with increased employer interest in hiring graduates.

Enrollment Growth: The company expressed confidence in maintaining strong enrollment growth, particularly from new campuses, with potential for higher-than-expected starts.

B2B Partnerships: There is a broadening interest from various sectors, including municipalities and military programs, for partnerships to address labor shortages.

Employer Incentives: Continued growth in employer incentives for graduates, indicating a strong demand for skilled labor in trades and health care. Overall, UTI reported a solid performance in Q2 2026, with strong growth metrics and strategic initiatives in place, despite facing challenges related to rising operating costs and the need to adapt to changing market dynamics.