UTI — Universal Technical Institute

XVARY Composite Score

56

/ 100

Below Average

Combines growth, value, risk, and momentum factors into a single institutional-grade score.

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What it is

UTI trains people for auto, diesel, welding, HVAC, energy, and healthcare jobs that still need humans in a room.

How it gets paid

Last year Universal Technical Institute made $835.6M in revenue. transportation training was the main engine at $335M, or 40% of sales.

Why it's growing
Revenue grew 14.0% last year. FY2026 outlook from the same release: revenue $905–$915M.

What just happened

Q4 revenue $222.4M; diluted EPS $0.34. FY2025 diluted EPS $1.13.

At a Glance

B+ balance sheet — decent shape, but not bulletproof

25/100 earnings predictability — expect surprises

24.0x trailing p/e — priced about right

10.5% return on capital — nothing to write home about

XVARY composite: 56/100 — below average

What They Do

UTI trains people for auto, diesel, welding, HVAC, energy, and healthcare jobs that still need humans in a room.

UTI sells hands-on training for skilled trades and healthcare roles employers still fill in person. FY2025 revenue $835.6M (+14%) with net income $63.0M shows real scale; FY2026 guidance explicitly budgets heavy growth investments that will pull reported EPS down even if revenue grows.

workforce-education mid-cap skilled-trades healthcare-training

How They Make Money

$835.6M FY2025 revenue · up +14.0% vs FY2024

transportation training

$335M

+10.0%

healthcare training

$251M

+14.0%

skilled trades training

$167M

+14.0%

energy training

$50M

+14.0%

other education services

$33M

+10.0%

The Products That Matter

Automotive and diesel training

Transportation Programs

segment split not shown here

this sits inside the $835.6M FY2025 revenue base and remains the legacy program family most investors watch first. the missing segment detail matters because you cannot yet see mix shifts cleanly from this snapshot alone.

legacy focus

Electrician and welding training

Skilled Trades Programs

inside the $835.6M platform

this is part of the diversification story around the same $835.6M business. if these programs scale faster than the legacy base, the revenue mix gets healthier even if the snapshot does not quantify it yet.

mix change watch

Allied health education

Healthcare Programs

revenue not broken out

healthcare matters because it gives the company another lane beyond transportation and skilled-trades training. the hard fact today is that all of it still rolls up into $835.6M of FY2025 revenue and mid‑single‑digit net margins (net income $63.0M in the release).

expansion lane

Key Numbers

$835.6M

FY2025 revenue

Company-reported FY2025 revenue $835.6M, +14.0% vs $732.7M prior year (Nov 19, 2025 release).

$0.71–$0.80

FY2026 diluted EPS guide

Guidance table: FY2026 diluted EPS $0.71–$0.80 vs FY2025 actual $1.13—management explicitly calls out ~$40M of growth investments weighing on reported earnings while revenue is guided to $905–$915M.

15.0%

operating margin

Operating margin means profit before interest and taxes, plain English the business keeps 15 cents per sales dollar before financing costs, so what margins matter more than enrollment headlines.

$84M

long-term debt

Debt is just 5% of capital, so the balance sheet is not the main problem here. Earnings quality is.

Financial Health

B+

Strength

balance sheet grade B+ — solid but not elite
risk rank 3 — safer than 50% of stocks
price stability 25 / 100
long-term debt $84M (5% of capital)
net profit margin ~7.5% — net income $63.0M on $835.6M revenue (FY2025 release)
return on equity 14% — $0.14 profit for every $1 investors have put in

B+ — functional but not a standout on the balance sheet.

Total Return vs. Market

You invested $10000 in UTI 3 years ago → it's now worth $40240.

The index would have given you $13920.

same period. same starting point. UTI beat the market by $26,320.

source: institutional data · total return

What Just Happened

Q4 / FY 2025

Q4 revenue $222.4M (+13.3%); diluted EPS $0.34. FY2025 diluted EPS $1.13.

FY2026 outlook from the same release: revenue $905–$915M (~9% growth at the midpoint), diluted EPS $0.71–$0.80, and reported adjusted EBITDA $114–$119M while the company spends ~$100M of capex on new campuses and programs—do not confuse top-line momentum with near-term GAAP earnings.

$222.4M

Q4 revenue

$1.13

FY diluted EPS

$905–$915M

FY2026 revenue guide

the number that mattered

The guided EPS step-down while revenue climbs is the investment story: growth capex hits GAAP earnings before the new campuses mature.

Universal technical institute is making its debut in the institutional data.
Founded in 1965, the company provides training programs and workforce education.

it operates through two divisions: universal technical institute (uti) and concorde career colleges (concorde). uti offers degree and non-degree programs in transportation, skilled trades, and energy technical training across 15 campuses in nine states. concorde provides healthcare education programs, including allied health, dental, nursing, and diagnostic fields, through online platforms and 17 campuses in eight states.
Both divisions emphasize hands-on learning, classroom delivery, and blended models.

the company looks well positioned to address a growing demand for skilled trades and healthcare careers. with plans to open three new campuses in fiscal 2026 (year ends september 30th), the arizona-based company is expanding into active regions including fort myers, florida; atlanta, georgia; and san antonio, texas. additionally, universal technical institute is set to launch approximately 20 new programs, targeting areas with significant workforce shortages such as nursing, dental hygiene, renewable energy, and advanced manufacturing. these strategic initiatives should align with employer demand, and ought to help position universal technical institute as a key player in addressing the national skills gap.
We have a favorable outlook on universal technical institute.
For fiscal 2026, we expect revenue of approximately $910 million, which represents vs. prior year growth of 9%.

while the company is increasing investments for campus expansions and program development, these upfront costs will likely moderate earnings this year.

P0: Universal Technical Institute FY2025 Q4 & year-end results (Nov 19, 2025) — PR Newswire · investor.uti.edu

What Could Go Wrong

The #1 risk is enrollment slowing across transportation and skilled-trades campuses.

!

High

Enrollment slowdown

this company is a pure-play training business. if student starts weaken, there is no other engine to bail out the income statement.

revenue exposure: 100% of the $836M base

∘

Med

Thin margin structure

a 4.8% net margin means even small operating misses matter. there is not much slack built into this model.

current full-year net margin: 4.8%

∘

Med

Earnings volatility

predictability is just 25/100, and last quarter's EPS fell 42% from the prior year. that is not the profile of a smooth compounder.

predictability score: 25 / 100

~

Low

Mix shift that never shows up

the story points to transportation, skilled trades, energy, and healthcare, but this snapshot does not give segment revenue. if diversification is working, investors need cleaner evidence next.

disclosure issue: no segment split inside $836M revenue

with workforce education representing 100% of the $836M revenue base, weaker enrollment or margin pressure hits the whole business at once.

Source: institutional data · regulatory filings · risk analysis

Pay Attention To

Earnings

Next earnings report

watch the next quarterly print, due around may 6, 2026. after a 42% EPS drop from the prior year, the next comparison matters more than the headline beat.

Metric

Net margin

the business earned 4.8% on a full-year basis and 5.8% last quarter. if that gap holds, the operating story gets more credible.

Trend

Revenue growth versus earnings growth

revenue rose 14.0% last year, but EPS still dropped sharply in the latest quarter. you want those lines moving in the same direction again.

Risk

Proof of diversification

management talks to multiple end markets, but this snapshot does not show segment revenue. cleaner disclosure on transportation, trades, energy, and healthcare would help you judge the story.

Analyst Rankings

short-term outlook

average

momentum score 3 — the stock is behaving roughly like the broader market. in human-speak, analysts do not see a strong short-term edge either way.

risk profile

average

stability score 3 — this sits near the middle of the risk pack. not especially safe, not a total rollercoaster.

chart momentum

below average

technical score 4 — the chart has cooled off. that does not kill the thesis, but it tells you enthusiasm is no longer doing the heavy lifting.

earnings predictability

25 / 100

earnings predictability this low means quarter-to-quarter results are harder to trust. if you own it, you are signing up for revisions and surprises.

Source: institutional data

Institutional Activity

128 buyers vs. 133 sellers in 3q2025. total institutional holdings: 50.9M shares.

source: institutional data · 1q2025-3q2025

Source: institutional data

Price Targets

3-5 year target range

$20 $65

$27 Current price

$43 Target midpoint · +58% from current · 3-5yr high: $50 (+85% · 16% ann'l return)

source: institutional data · analyst targets

The Deep Dive

UTI

XVARY Deep Dive

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The full analysis is in the works.

What you'll get

DCF valuation model

Bull / base / bear scenarios

Competitive moat breakdown

Quarterly earnings tracker

Operating model projections

Risk matrix with kill criteria

Original price target + conviction

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