Universal Technical Institute Inc (UTI) Q2 2025 Earnings Call Highlights: Strong Revenue Growth ...

GuruFocus News

Thu, May 8, 2025, 12:29 AM 4 min read

• Revenue: Increased 12.6% year-over-year to $207.4 million.

• Net Income: Increased 47% to $11.4 million.

• Diluted Earnings Per Share: $0.21.

• Adjusted EBITDA: Grew 27.8% year-over-year to $28.9 million.

• Average Full-Time Active Students: Increased 10.3% year-over-year to 24,604 students.

• New Student Starts: Grew 21.4% year-over-year to 6,650 starts.

• Concorde Division Revenue: $73.2 million, an summation of 20.3% implicit the anterior twelvemonth quarter.

• UTI Division Revenue: $134.2 million, an summation of 8.8% implicit the anterior twelvemonth quarter.

• Total Available Liquidity: $235 million, including $40 cardinal of short-term investments and $99 cardinal of remaining capableness connected the revolving recognition facility.

• Operating Cash Flow Year-to-Date: $22.2 million.

• Adjusted Free Cash Flow Year-to-Date: $8 million.

• Capital Expenditures Year-to-Date: $14.3 million.

• Fiscal 2025 Revenue Guidance: Raised to $825 cardinal to $835 million, reflecting astir 13% year-over-year growth.

• Fiscal 2025 Adjusted EBITDA Guidance: Raised to $124 cardinal to $128 million.

• Fiscal 2025 New Student Starts Guidance: Expected to beryllium betwixt 29,000 and 30,000.

• Warning! GuruFocus has detected 7 Warning Sign with UTI.

Release Date: May 07, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Revenue for the 2nd 4th accrued astir 13% year-over-year to $207.4 million.

• Average full-time progressive students grew implicit 10% year-over-year to 24,604 students.

• Net income accrued 47% to $11.4 cardinal with diluted net per stock of $0.21.

• Adjusted EBITDA grew astir 28% year-over-year to $28.9 million.

• Strong request for skilled labor, peculiarly successful trades and healthcare, continues to supply tailwinds for UTI's business.

• Potential challenges successful maintaining precocious double-digit maturation successful Concorde part owed to capableness limits successful objective courses.

• Increased strategical investments successful fiscal years 2026 and 2027 whitethorn temporarily mean borderline growth.

• The fig of for-sale signs successful the marketplace for strategical acquisitions is smaller than expected.

• High schoolhouse pupil recruitment is mostly implicit for the year, which whitethorn interaction aboriginal enrollment maturation rates.

• The institution is facing tougher comparable periods for caller pupil starts successful the upcoming quarters.

Q: Can you item immoderate circumstantial campuses oregon programs that contributed to the beardown caller pupil starts? Also, what are the favorable tailwinds you mentioned successful the property release? A: Jerome Grant, CEO: The beardown caller pupil starts are driven by accrued selling investments, peculiarly successful the healthcare side, with objective courses showing important strength. The favorable tailwinds see a increasing penchant for commercialized schools implicit 4-year colleges, accrued request for skilled labor, and supportive governmental environments focusing connected onshoring and infrastructure development.