Universal Technical Institute delivered a positive third quarter, with results surpassing Wall Street’s expectations on both revenue and profit. The company credited ongoing strength in demand for skilled trades and healthcare careers, as well as the successful launch of new programs and operational efficiencies, as primary drivers. CEO Jerome Grant emphasized that the company’s diversified, multi-division model and targeted program launches contributed to the quarter’s solid execution, stating, “These results underscore both the resiliency of demand for skilled trades healthcare careers, and the effectiveness of our multidivisional model.”
Is now the time to buy UTI? Find out in our full research report (it’s free for active Edge members).
Universal Technical Institute (UTI) Q3 CY2025 Highlights:
- Revenue: $222.4 million vs analyst estimates of $219.5 million (13.3% year-on-year growth, 1.3% beat)
- EPS (GAAP): $0.34 vs analyst estimates of $0.26 (32.5% beat)
- Adjusted EBITDA: $36.78 million vs analyst estimates of $36.29 million (16.5% margin, 1.4% beat)
- EPS (GAAP) guidance for the upcoming financial year 2026 is $0.76 at the midpoint, missing analyst estimates by 17.8%
- EBITDA guidance for the upcoming financial year 2026 is $116.5 million at the midpoint, below analyst estimates of $118.6 million
- Operating Margin: 11.2%, down from 13.3% in the same quarter last year
- New Students: 12,109, up 617 year on year
- Market Capitalization: $1.25 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Universal Technical Institute’s Q3 Earnings Call
- Jasper Bibb (Truist): Asked about the expected distribution of new student starts between Universal Technical Institute and Concord. CFO Bruce Schuman indicated growth would be evenly split, with both segments targeted for similar expansion.
- Mike Grondahl (Northland Securities): Inquired about high school recruiting success. CEO Jerome Grant said results met expectations, with future resources planned for high school outreach as new campuses open.
- Griffin Boss (B. Riley): Sought clarification on the timing and revenue potential of new campus openings. Grant explained that mature Universal Technical Institute campuses could reach $40–45 million in revenue, while Concord campuses would likely contribute $20–25 million each.
- Raj Sharma (Texas Capital): Asked about student demographics and employment outcomes by program. Grant noted a shift toward older, local students in skilled trades and reported intensifying employer demand across all programs.
- Raj Sharma (Texas Capital): Queried the impact of potential changes at the Department of Education. Grant responded that transition processes are streamlined and collaborative, with little anticipated disruption to funding or program approvals.
Catalysts in Upcoming Quarters
In the coming quarters, our team will closely monitor (1) the execution and early enrollment trends at new campus openings, (2) the effectiveness of marketing and recruiting strategies targeting both adult and high school student segments, and (3) the pace at which recently launched programs gain traction and achieve targeted enrollment levels. Additionally, we will watch for signs that margin pressures begin to ease as scale benefits from campus investments materialize.
Universal Technical Institute currently trades at $23.13, down from $29.49 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
The Best Stocks for High-Quality Investors
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
