Universal Technical Institute Reports 12.6% Revenue Growth in Q2 Fiscal 2025

Universal Technical Institute, Inc. (UTI) reported a significant increase in financial performance for the second quarter of fiscal 2025, with revenues reaching $207.4 million, a 12.6% increase from $184.2 million in the same period last year. The company's net income for the quarter was $11.4 million, compared to $7.8 million in the prior year, resulting in earnings per share of $0.21, up from $0.14. For the six months ended March 31, 2025, total revenues were $408.9 million, reflecting a 13.9% increase from $358.9 million in the previous year, while net income rose to $33.6 million from $18.2 million.

The growth in revenue was primarily driven by an increase in student enrollment across both UTI and its subsidiary, Concorde Career Colleges. UTI saw a 26.4% rise in new student starts, while Concorde experienced a 15.9% increase. The average full-time active students also grew, with UTI reporting 14,777 students and Concorde 9,827 students during the quarter. This increase in student population was attributed to the successful launch of new programs, including HVAC and refrigeration courses, and the introduction of cash pay short programs at Concorde campuses.

Operating expenses for the quarter totaled $190.6 million, up from $173.0 million a year earlier, largely due to increased costs associated with higher student volumes and strategic initiatives. However, the company managed to improve its income from operations to $16.9 million, compared to $11.2 million in the prior year, indicating effective cost management and operational efficiencies. The company also reported a decrease in the percentage of operating expenses relative to revenues, from 93.9% to 91.9%.

In terms of strategic developments, UTI announced plans to open new campuses in Atlanta and San Antonio, Texas, in 2026, pending regulatory approvals. Additionally, the company expanded its Manufacturer Specific Advanced Training program to include Tesla's START Collision Repair program. UTI also launched new courses in Battery Hybrid Electric Vehicle and Electric Vehicle training, further diversifying its educational offerings. As of March 31, 2025, UTI had 54,406,215 shares outstanding, reflecting ongoing confidence in its growth trajectory.

Looking ahead, UTI remains optimistic about its growth prospects, supported by a strong pipeline of new programs and campus expansions. The company plans to continue leveraging its industry relationships and adapting to market demands to enhance student outcomes and drive enrollment. However, management acknowledged potential risks, including regulatory challenges and macroeconomic conditions that could impact student enrollment and financial performance.