Universal Technical Institute delivered a robust second quarter for fiscal 2025, underscoring the strength of its two-division model (Concorde and UTI). Revenue rose 12.6% year over year to $207.4 million, led by a 20.3% year-over-year rise in Concorde segment revenue to $73.2 million and an 8.8% rise in the UTI division to $134.2 million. Net income grew 47% year over year to $11.4 million, while adjusted EBITDA advanced roughly 28% to $28.9 million, reflecting disciplined spend and favorable demand dynamics for skilled trades and healthcare programs. Management reaffirmed and elevated full-year guidance, signaling confidence in continued demand momentum and program expansions in the second half of 2025.
UTI’s strategic North Star Phase 2 plan remains a central driver of the growth trajectory. Management outlined a pathway to open at least six new programs annually and at least two new campuses per year beginning in fiscal 2026, with a multi-year roadmap to exceed $1 billion in revenue by 2029 and margins approaching 20% adjusted EBITDA as campuses scale. The near-term cadence includes meaningful investments in marketing, admissions capacity, and campus infrastructure (e.g., HVACR launch at Orlando, EEIT program at Xtend/Mooresville, nursing program expansions, and the Heartland Dental co-branded campus). While these investments compress near-term margins, they are designed to unlock higher, sustainable returns in 2028–2029 and beyond. Investors should monitor enrollment velocity, growth in new programs and capacity, capital expenditures, and the timing of Title IV eligibility for new Concorde campuses.
Key risks to watch include the cost and timing of expansion, regulatory approvals for new campuses, evolving federal higher-education policy, and potential shifts in demand in the macro environment. Nevertheless, the company maintains a constructive outlook, supported by rising demand for skilled trades and healthcare professionals, a favorable macro backdrop for trade schools, and a clear, executable plan to scale the platform.