Universal Technical Institute (NYSE:UTI) CEO Jerome Grant outlined the workforce education provider’s expansion plans, student-outcome metrics and revised 2026 outlook at the IDEAS Conference, citing a near-term enrollment mix shift and high-school admissions disruption while maintaining the company’s longer-term targets.
Grant said the company operates 35 campuses nationwide, offers roughly 35 to 36 programs and serves about 25,000 active students. Its UTI brand focuses on transportation, skilled trades and energy programs, while Concorde Career Colleges serves healthcare occupations including nursing-adjacent and clinical support roles.
2026 Outlook and Long-Term Strategy
Grant said the company’s 2026 outlook calls for approximately $900 million in revenue, net income of $32 million to $36 million and EBITDA of $100 million to $103 million. While the company recently lowered its guidance following its third quarter, Grant said management remains on track toward its 2029 goals of more than $1.2 billion in annual revenue and roughly $220 million in EBITDA.
The company’s second phase of its “North Star” strategy is focused on organic expansion rather than acquisitions. Grant said the plan includes adding between 10 and 20 programs annually and opening an average of two UTI campuses and two Concorde campuses per year over the next five years.
Management expects annual growth of about 10% during the strategy period, with 2% to 3% coming from same-store enrollment growth, 2% to 3% from pricing, and the remaining approximately 5% from new campuses and programs.
UTI generated $542 million in revenue last year, while Concorde produced $294 million, Grant said. As a result, approximately two-thirds of the business is tied to skilled trades, transportation and energy, while healthcare accounts for about one-third.
Campus Investment Plans
Grant said Universal Technical Institute expects to spend about $110 million to $120 million annually on campus construction and program launches, along with $45 million to $50 million in pre-opening operating expenses. He said a comprehensive UTI campus generally costs $25 million to $26 million to build, reaches full run-rate operations in its second or third year and has an estimated five-year payback period.
At maturity, a UTI campus is expected to serve about 1,500 students, produce roughly $45 million in revenue and generate a contribution margin of about 32%, Grant said. Concorde campuses generally cost about $10 million to $12 million, serve 600 to 700 students and generate contribution margins near 29% to 30%.
The company is prioritizing markets based on population, employer-partnership potential and projected returns on education, among other data inputs. Grant said virtually any U.S. city with a population of 1 million could support one UTI campus and likely two Concorde healthcare campuses. The company sees significant expansion opportunity outside its existing concentrations in California, Texas and Florida.
Enrollment Mix and Admissions Challenges
Grant said the company expects nearly 12% growth in its student population during 2026, but noted that more students than anticipated have chosen shorter and lower-cost skilled-trades programs rather than auto and diesel programs. The shift affected profitability because skilled-trades offerings are “shorter, cheaper and slightly less profitable,” he said.
The company also identified a high-school admissions issue at five of its 17 campuses. Grant said turnover among high-school recruiting representatives at those locations resulted in about 1,000 fewer auto and diesel students, accounting for roughly 70% of the company’s admissions shortfall.
Management discovered the issue in July when fewer students than expected were completing financial-aid processes, he said. The company has since adjusted its management and training for the recruiting channel and expects to begin the fall with 181 high-school representatives. It also plans to allocate an additional $10 million in capital next year to expand skilled-trades capacity at legacy campuses.
Positioning Against Community Colleges
Grant said UTI’s programs cost substantially more than comparable community-college programs, but are designed around industry alignment and faster completion. He said a community-college auto and diesel program may cost about $12,000 over two years, while comparable programs at UTI or similar schools can cost $37,000 to $38,000 and be completed in 51 weeks.
UTI works with about 6,000 employer partners and Concorde works with about 7,000, Grant said. He added that employer partners recruiting UTI students must offer tuition reimbursement. The company’s student acquisition cost averages about $8,000, while marketing accounts for roughly 14% of revenue.
Grant said the company views community colleges less as direct competitors than as part of a broader effort to address labor shortages. He estimated that there are currently four to five jobs available for every graduate of the company’s programs, with only 20% to 25% of available positions in these fields being filled.
About Universal Technical Institute (NYSE:UTI)
Universal Technical Institute, Inc (NYSE: UTI) is a leading provider of post-secondary education for students pursuing careers as professional automotive, diesel, collision repair, motorcycle and marine technicians, as well as in welding and CNC machining. The company designs and delivers hands-on training through a blend of classroom instruction and experiential lab work, preparing graduates for entry-level positions in the transportation, manufacturing and energy sectors. UTI’s curriculum emphasizes industry-recognized credentials and proprietary coursework developed in collaboration with original equipment manufacturers (OEMs) to ensure alignment with evolving employer needs.
Through a network of campus locations across the United States and select centers in Canada, Universal Technical Institute offers diploma and certificate programs ranging from 36 to 74 weeks in length.
