Universal Technical Institute Reaffirms 2029 Goals Despite 2026 Enrollment Headwinds

Universal Technical Institute Reaffirms 2029 Goals Despite 2026 Enrollment Headwinds

UTI reaffirmed its 2029 targets of more than $1.2 billion in revenue and approximately $220 million in EBITDA, despite lowering its 2026 outlook to about $900 million in revenue and $100 million–$103 million in EBITDA. The company expects roughly 12% student growth in 2026, but enrollment is shifting toward shorter, lower-cost skilled-trades programs. High-school recruiting turnover at five campuses also contributed to approximately 1,000 fewer auto and diesel students.

UTI plans to pursue organic expansion by adding 10–20 programs and opening about two UTI and two Concorde campuses annually, supported by $110 million–$120 million in yearly construction and launch spending.

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.

The company reported a graduation rate of about 70%, with roughly 80% to 85% of graduates obtaining jobs in their field within a year, according to Grant. He also said employer satisfaction is approximately 96% to 97%.

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.

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.