Universal Technical Institute (UTI) investor relations material

Strategic outlook and growth plans

• Operating 35 campuses with 25,000 active students and a 70% graduation rate; 80% of graduates secure jobs within a year.

• 2026 guidance targets $900M revenue, $32M–$36M net income, and $100M–$103M EBITDA; aiming for $1.2B revenue and $220M EBITDA by 2029.

• Growth strategy focuses on organic expansion, program diversification, and geographic reach, with plans to build four campuses annually for five years.

• Capital allocation includes $110M–$120M per year for campus construction and $45M–$50M in pre-opening operating expenses.

• Maintaining quality standards is prioritized over rapid expansion, with a focus on high graduation, employment, and employer satisfaction rates.

Market positioning and value proposition

• Programs target sectors with acute supply-demand imbalances, especially in skilled trades and healthcare.

• Tuition is about four times higher than community colleges, but offers faster completion and strong industry alignment.

• Employer partnerships provide tuition reimbursement and job placement support, reducing financial risk for students.

• 14% of revenue is allocated to marketing, with an average student acquisition cost of $8,000.

• Most students use Pell Grants and federal loans; tuition averages $9,000 per quarter for technical and clinical programs.

Operational performance and challenges

• Recent guidance was lowered due to a Q4 shortfall in high school admissions and a shift toward shorter, less profitable skilled trades programs.

• High school recruitment issues were addressed by increasing reps and improving management and training.

• Additional $10M in capital allocated to expand skilled trades capacity in response to rising demand.

• Certification exams are required for most programs, with high pass rates and strong retention after the initial nine weeks.

• Regulatory environment is stable, with federal loan programs available and high Pell Grant eligibility among students.