Q3 2026 Universal Technical Institute Inc Earnings Call Transcript
Key Points
- New student starts grew 11% year-over-year, exceeding expectations, with UTI division up 23%.
- New campuses (Atlanta, San Antonio) are outperforming launch models by 30-40%, indicating strong growth potential.
- Employer demand for skilled graduates remains exceptionally high across all sectors, supporting long-term growth.
- Skilled trades programs are seeing stronger-than-expected interest, validating diversification strategy.
- Marketing leads increased 18-22% year-over-year, showing resilience despite AI-driven search changes.
- Company remains confident in fiscal 2029 targets of $1.2 billion revenue and $220 million adjusted EBITDA.
- Fourth-quarter UTI high school starts are tracking below expectations due to execution issues with field reps.
- Fiscal 2026 guidance lowered: revenue now $893-$900 million and adjusted EBITDA reduced to $100-$103 million.
- Mix shift toward shorter, less profitable skilled trades programs is impacting revenue and profit.
- Concorde division saw softer starts in Q3 due to fewer clinical starts, affecting overall growth.
- Increased capital expenditures to $110 million, higher than originally planned, due to accelerated investments.
- Near-term challenges in high school channel may require time to fully remediate, impacting Q4 results.
Good day, and welcome to the Universal Technical Institute's third-quarter 2026 earnings conference call. (Operator Instructions) Please note that today's event is being recorded.
I would now like to turn the conference over to Matt Kempton, Vice President, Corporate Finance and Investor Relations. Please go ahead.
Hello, and welcome to Universal Technical Institute's Fiscal third-quarter 2026 earnings call. Joining me today are our CEO, Jerome Grant; and CFO, Bruce Schuman. Following our prepared remarks, we will open the call for your questions. A replay of this call, its transcript and our investor presentation will be archived on the Investor Relations section of our website at investor.uti.edu, along with our earnings release issued earlier today and furnished to the SEC.
During this call, we may make comments that contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, which by
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