AI Analysis | Feedback

Here are 1-2 brief analogies for Universal Technical Institute (UTI):

• A General Assembly for skilled trades like automotive, diesel, and welding.

• The University of Phoenix for vocational and technical careers.

AI Analysis | Feedback

• Automotive Technology Training: Provides hands-on education and skills development for careers as automotive technicians.
• Diesel Technology Training: Offers specialized training in the maintenance and repair of heavy-duty diesel engines and equipment.
• Collision Repair & Refinish Training: Delivers comprehensive instruction on vehicle body repair, painting, and refinishing techniques.
• Motorcycle Mechanics Training: Focuses on the diagnostics, service, and repair of motorcycles.
• Marine Technology Training: Prepares students for careers in servicing and repairing marine engines and systems.
• Welding Technology Training: Teaches various welding processes and techniques for industrial and manufacturing applications.
• HVACR Technology Training: Equips students with skills for installing, maintaining, and repairing heating, ventilation, air conditioning, and refrigeration systems.

AI Analysis | Feedback

Universal Technical Institute (Symbol: UTI)

• **High School Graduates and Young Adults:** A significant portion of UTI's student body consists of recent high school graduates or young adults seeking a direct path to a career in the skilled trades (automotive, diesel, welding, HVAC, etc.) without pursuing a traditional four-year college degree. These individuals are looking for practical, hands-on training to enter the workforce quickly.
• **Career Changers and Adult Learners:** Many students are adults looking to make a career change, enhance their existing skills, or acquire new proficiencies to improve their employment prospects. These individuals may be dissatisfied with their current jobs or seeking opportunities in growing technical fields.
• **Military Veterans:** UTI actively recruits and supports military veterans transitioning to civilian life. They offer specific programs and assistance for veterans utilizing their GI Bill benefits to acquire valuable technical skills for civilian careers.

AI Analysis | Feedback

• Ford Motor Company (F)
• General Motors Company (GM)
• Daimler Truck Holding AG (DTRUY)
• Toyota Motor Corporation (TM)
• Cummins Inc. (CMI)
• Harley-Davidson, Inc. (HOG)
• Lincoln Electric Holdings, Inc. (LECO)
• Caterpillar Inc. (CAT)
• Trane Technologies plc (TT)

AI Analysis | Feedback

Jerome A. Grant, Chief Executive Officer

Jerome A. Grant was appointed Chief Executive Officer of Universal Technical Institute in November 2019, having joined the company as Executive Vice President and Chief Operating Officer in November 2017. He brings over two decades of executive leadership experience in post-secondary education, with expertise in digital strategy, strategic partnerships, marketing, and technology. Prior to UTI, Mr. Grant served as Senior Vice President, Chief Services Officer with McGraw-Hill Education, Inc. from June 2015 to April 2017. Before McGraw-Hill, he spent more than 14 years at Pearson Education, Inc., holding various executive roles including President of Business and Technology, Chief Learning Officer, Vice President – Digital Products, and Vice President – Technology Strategy. At Pearson, he was instrumental in growing revenues for the Business and Technology skills division to over $425 million and generating more than $112 million in EBITDA. He also launched McGraw-Hill’s innovative higher education services business and guided Pearson Higher Education’s digital product management group through its initial digital transformation stages.

Bruce Schuman, Chief Financial Officer

Bruce Schuman was named Chief Financial Officer of Universal Technical Institute, effective March 17, 2025. He has over 30 years of experience in the technology sector. Most recently, Mr. Schuman served as CFO for Vacasa (NASDAQ: VCSA), North America's largest short-term rental property management and hospitality company, where he was crucial in driving financial strategy and operational excellence, leading the company to its first year of profitability in 2023. Before Vacasa, he held the CFO position at Kiavi (formerly LendingHome), one of the nation's largest lenders to real estate investors, where he led the company through rapid, profitable growth and IPO readiness initiatives. Earlier in his career, Mr. Schuman spent over 27 years at Intel Corporation, serving in various finance leadership roles, including CFO of the Enterprise Data Center business and Intel Capital.

Sherrell E. Smith, Executive Vice President and Chief Academic Officer

Sherrell E. Smith has held multiple leadership roles at Universal Technical Institute since 1986. His previous positions include Executive Vice President of Campus Operations and Services, Executive Vice President of Admissions and Operations, and Senior Vice President of Operations. Additionally, he has advised a private equity firm on acquisition opportunities within the education sector and served as Chief Executive Officer of the American Institute of Technology.

Christopher E. Kevane, Executive Vice President and Chief Legal Officer

Christopher E. Kevane joined Universal Technical Institute in 2020 and brings over 20 years of legal and executive experience. He has represented both publicly traded and private equity-backed organizations. Prior to joining UTI, Mr. Kevane served as Chief Legal Officer for Centauri Health Solutions.

Todd A. Hitchcock, Chief Operating Officer

Todd A. Hitchcock serves as the Chief Operating Officer for Universal Technical Institute.

AI Analysis | Feedback

1. Regulatory Scrutiny and Compliance

   Universal Technical Institute operates in a heavily regulated environment, and changes in federal and state regulations, particularly concerning financial aid programs and accountability for for-profit educational institutions, pose a significant risk. This includes potential liabilities from "borrower defense to repayment" regulations, which could hold the institution responsible for discharged federal student loans if students claim they were misled or that the institution engaged in misconduct. Additionally, state legislatures may introduce new performance metrics that UTI would need to satisfy to maintain eligibility, potentially imposing substantial additional costs. The acquisition of new schools also carries the risk of temporary suspension from federal student financial aid programs until regulatory approval is obtained.

2. Operational Challenges and Financial Strain from Rapid Expansion

   UTI is undergoing a period of rapid expansion, with plans for new campuses and programs to meet increasing demand in skilled trades and healthcare. However, this rapid expansion has brought about operational challenges and financial strain. Operating expenses have consistently been significantly higher than operating income, with this ratio expanding further recently. The company's ability to effectively manage this growth, ensure that expansion profits outweigh costs, and improve its balance sheet, which has seen heavy investment, is crucial for long-term profitability. Furthermore, underutilized capacity at some campuses could lead to a deterioration of profitability and operating margins if not addressed.

3. Dependence on Student Financial Aid and Proprietary Loan Program Risks

   The company's business model is significantly dependent on students' ability to obtain financial aid, including government-sponsored programs. Risks include restrictions on, or the inability to offer, its proprietary loan program, which could negatively impact its results of operations. The proprietary loan program, which provides tuition funding for students who cannot secure other loans, exposes UTI to credit and collection risks. Factors such as economic conditions, compliance with lending laws, the performance of loan servicers, and a decline in graduate employment opportunities can affect loan collection rates, potentially having a material adverse effect on UTI's financial condition.

AI Analysis | Feedback

AI Analysis | Feedback

Universal Technical Institute (UTI) provides training for various skilled trades. The addressable markets for their main products and services are as follows:

Automotive Technology

• The U.S. automotive repair and maintenance service market was valued at USD 183.4 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 10.1% between 2024 and 2032.
• The U.S. Bureau of Labor Statistics anticipates 21,200 new job openings for automotive service technicians and mechanics between now and 2033.
• There are over 283 million vehicles on the road in the United States, indicating a substantial demand for automotive technicians.

Diesel Technology

• The U.S. will require over 258,000 new diesel and auto technicians by 2025 to meet demand.
• Employment of diesel service technicians and mechanics in the U.S. is projected to grow 2% from 2024 to 2034.
• An average of approximately 26,500 job openings for diesel service technicians and mechanics are projected each year over the next decade in the U.S.

Collision Repair and Refinishing

• The U.S. Automotive Collision Repair market size was valued at USD 34.73 billion in 2024 and is expected to reach USD 43.32 billion by 2032.
• The North America automotive collision repair market, with the U.S. holding an 83.63% revenue share, was valued at USD 46.17 billion in 2025 and is projected to grow to USD 54.22 billion by 2030.

Motorcycle Technician Training

• The Motorcycle Dealership and Repair market size in the U.S. was USD 48.9 billion in 2024 and is projected to reach USD 49.3 billion in 2025.
• There are an estimated 17,100 motorcycle mechanics currently employed in the United States, with the job market expected to grow by 1.8% between 2022 and 2032.
• An estimated 5,100 new motorcycle mechanics will be needed in the U.S. over the next 10 years, largely due to replacements.

Marine Technician Specialist

• The North America Marine Engines Market was valued at USD 3,495.81 million in 2022 and is projected to grow at a CAGR of 5.12%, reaching USD 5,744.60 million by 2032.
• The North America maritime training market size is estimated at USD 1.2 billion in 2024.

Welding Technology

• The welding market in the U.S. is projected to reach an estimated value of USD 8.95 billion by 2032.
• The global welding market size was valued at USD 23.75 billion in 2022 and is projected to grow to USD 34.18 billion by 2030.
• The American Welding Society predicts the U.S. will need more than 400,000 welders by 2025. Approximately 320,500 new welding professionals are projected to be needed in the U.S. by 2029.

HVACR (Heating, Ventilation, Air Conditioning, and Refrigeration)

• The United States HVAC market was valued at USD 31.26 billion in 2024 and is expected to reach USD 38.45 billion by 2030.
• The U.S. HVAC services market is predicted to increase in value from USD 25.6 billion in 2019 to USD 35.8 billion in 2030.
• Employment for heating, air conditioning, and refrigeration mechanics and installers in the U.S. is projected to grow 8% from 2024 to 2034, with about 40,100 openings projected each year.

Wind Turbine Technician

• Employment of wind turbine technicians in the U.S. is projected to grow 50% from 2024 to 2034.
• Approximately 2,300 job openings for wind turbine technicians are projected each year, on average, over the decade in the U.S.
• The demand for wind energy technicians in the U.S. is projected to increase by 44.9% in 10 years, from 11.2 thousand in 2022 to 16.2 thousand in 2032.

AI Analysis | Feedback

• Growth in Student Enrollment: A primary driver of revenue growth for UTI is the consistent increase in new student starts and the overall average number of full-time active students across both its Universal Technical Institute and Concorde Career Colleges divisions. Management has raised its fiscal year 2025 guidance for new student starts, and both divisions have reported year-over-year increases in their student populations.
• Expansion to New Campuses: As part of its "North Star Phase 2" strategy, UTI plans to open at least two new campuses annually starting in fiscal year 2026, with three new campuses already announced for 2026, including a Heartland-Concorde campus, an Atlanta UTI campus, and a skilled-trades UTI campus in San Antonio. This geographical expansion will directly increase capacity and reach, contributing to higher student enrollment and, consequently, revenue.
• Launch and Expansion of New Programs and Curricula: UTI is focused on adding new programs annually and diversifying its offerings. This includes introducing new nursing programs at Concorde and expanding the UTI division into non-transportation skilled trades such as HVACR and EEIT (Electrical and Electronic Systems Technology). This strategic diversification into high-demand fields broadens the company's appeal and attracts a wider range of prospective students.
• Increased Marketing Effectiveness and Lead Conversion: Enhanced demand generation and marketing execution are playing a significant role in driving student growth. The company has noted strong lead conversion rates resulting from increased marketing investments, particularly within the Concorde division. These efforts directly translate into higher new student enrollments.
• Opportunistic Strategic Acquisitions: While recent growth has been largely organic and focused on integrating past acquisitions, UTI has indicated its intent to "continue to opportunistically pursue strategic acquisitions." Such acquisitions could provide further avenues for expanding its educational offerings, geographical footprint, and student base, thereby contributing to future revenue growth.

AI Analysis | Feedback

Share Repurchases

• Universal Technical Institute has an authorized $35.0 million share repurchase program.
• No shares were repurchased under this program as of June 30, 2025, or March 31, 2025.
• A preferred share repurchase of $11.5 million occurred prior to March 31, 2024.

Share Issuance

• Shares outstanding were 54,423,611 as of August 1, 2025.
• Shares outstanding were 54,406,215 as of May 1, 2025.
• The company's common shares outstanding increased from approximately 53.8 million at September 30, 2024, to approximately 54.4 million at March 31, 2025, which includes proceeds from stock option exercises.

Inbound Investments

• In November 2025, Universal Technical Institute announced a private placement of unsecured convertible bonds to raise fresh funding.

Capital Expenditures

• For fiscal year 2025, expected total capital expenditures are approximately $55 million, with $25.5 million incurred year-to-date as of June 30, 2025, primarily for program expansions at UTI and Concorde.
• In fiscal year 2024, the company incurred $24.3 million in cash capital expenditures, driven by program expansions, curriculum and equipment refresh, facility improvements, and IT investments.
• Over the last three years, UTI made significant capital expenditures by purchasing three campus locations.