Universal Technical Institute, Inc. Announces Next Phase of "North Star Strategy" to Accelerate Growth, Diversification and Optimization
Universal Technical Institute, Inc. (UTI) has announced the next phase of its 'North Star Strategy' to accelerate growth, diversification, and optimization. The strategy aims to deliver approximately 10% revenue CAGR and expand Adjusted EBITDA margin to nearly 20% through fiscal 2029. UTI plans to launch a minimum of six new programs annually at existing campuses starting in fiscal year 2025 and open at least two new campuses each year between fiscal years 2026 and 2029. The company has already achieved significant milestones, including nearly tripling campus locations, doubling student numbers and revenue, and increasing profitability by more than five times since the strategy's first phase began five years ago.
Universal Technical Institute, Inc. (UTI) ha annunciato la fase successiva della sua 'North Star Strategy' per accelerare la crescita, la diversificazione e l'ottimizzazione. La strategia mira a raggiungere un CAGR dei ricavi del 10% e ad espandere il margine EBITDA rettificato a quasi 20% entro l'anno fiscale 2029. UTI prevede di lanciare almeno sei nuovi programmi all'anno nei campus esistenti a partire dall'anno fiscale 2025 e di aprire almeno due nuovi campus ogni anno tra gli anni fiscali 2026 e 2029. L'azienda ha già raggiunto traguardi significativi, tra cui quasi triplicare il numero dei campus, raddoppiare gli studenti e i ricavi e aumentare la redditività di oltre cinque volte da quando è iniziata la prima fase della strategia cinque anni fa.
Universal Technical Institute, Inc. (UTI) ha anunciado la siguiente fase de su 'North Star Strategy' para acelerar el crecimiento, la diversificación y la optimización. La estrategia tiene como objetivo alcanzar aproximadamente un CAGR de ingresos del 10% y expandir el margen EBITDA ajustado a casi 20% para el año fiscal 2029. UTI planea lanzar un mínimo de seis nuevos programas anualmente en los campus existentes a partir del año fiscal 2025 y abrir al menos dos nuevos campus cada año entre los años fiscales 2026 y 2029. La empresa ya ha alcanzado hitos significativos, incluyendo el casi triplicar el número de campus, duplicar el número de estudiantes y los ingresos, y aumentar la rentabilidad más de cinco veces desde que comenzó la primera fase de la estrategia hace cinco años.
유니버설 기술 대학교(UTI)는 성장을 가속하고 다각화 및 최적화를 위한 'North Star Strategy'의 다음 단계를 발표했습니다. 이 전략은 약 10% 수익 CAGR을 달성하고 2029 회계연도까지 조정된 EBITDA 마진을 거의 20%로 확대하는 것을 목표로 합니다. UTI는 2025 회계연도부터 기존 캠퍼스에서 매년 최소 여섯 개의 새로운 프로그램을 출시하고 2026 회계연도부터 2029 회계연도까지 매년 최소 두 개의 새로운 캠퍼스를 열 계획입니다. 회사는 이미 캠퍼스 위치를 거의 세 배로 늘리고 학생 수와 수익을 두 배로 늘리며 전략의 첫 번째 단계가 시작된 5년 전 이후에 수익성을 다섯 배 이상 증가시키는 등의 중요한 이정표를 달성했습니다.
Universal Technical Institute, Inc. (UTI) a annoncé la prochaine étape de sa 'North Star Strategy' pour accélérer la croissance, la diversification et l'optimisation. La stratégie vise à atteindre environ 10% de CAGR des revenus et à élargir la marge EBITDA ajustée à près de 20% d'ici l'exercice 2029. UTI prévoit de lancer un minimum de six nouveaux programmes chaque année dans les campus existants à partir de l'exercice 2025 et d'ouvrir au moins deux nouveaux campus chaque année entre les exercices 2026 et 2029. L'entreprise a déjà atteint des jalons significatifs, y compris le quasi-triplement des emplacements des campus, le doublement du nombre d'étudiants et des revenus, et une augmentation de la rentabilité de plus de cinq fois depuis que la première phase de la stratégie a commencé il y a cinq ans.
Das Universal Technical Institute, Inc. (UTI) hat die nächste Phase seiner 'North Star Strategy' angekündigt, um Wachstum, Diversifizierung und Optimierung zu beschleunigen. Die Strategie zielt darauf ab, eine 10% Umsatz-CAGR zu erreichen und die bereinigte EBITDA-Marge bis zum Geschäftsjahr 2029 auf nahezu 20% zu steigern. UTI plant, ab dem Geschäftsjahr 2025 jährlich mindestens sechs neue Programme an bestehenden Standorten einzuführen und zwischen den Geschäftsjahren 2026 und 2029 mindestens zwei neue Standorte pro Jahr zu eröffnen. Das Unternehmen hat bereits bedeutende Meilensteine erreicht, darunter die nahezu Verdreifachung der Standorte, die Verdopplung der Anzahl der Studierenden und der Einnahmen sowie die Verfünffachung der Rentabilität seit Beginn der ersten Phase der Strategie vor fünf Jahren.
- Expected 10% revenue CAGR through fiscal 2029
- Projected expansion of Adjusted EBITDA margin to nearly 20% by fiscal 2029
- Plan to launch six new programs annually at existing campuses from fiscal 2025
- Strategy to open two new campuses yearly between fiscal 2026 and 2029
- Revenue growth from $331 million in FY2019 to projected $725 million in FY2024
- Adjusted EBITDA increase from $17 million in FY2019 to projected $103 million in FY2024
- None.
Insights
Universal Technical Institute's (UTI) announcement of its "North Star Strategy" phase two is a significant development for investors. The company's projection of
The plan to launch six new programs annually and open two new campuses yearly from FY2026 to FY2029 indicates aggressive expansion. However, investors should note that these projections are subject to regulatory approval and market conditions. The company's focus on addressing the skilled workforce gap aligns with current labor market trends, potentially providing a stable demand for its services.
UTI's strategy to diversify its educational offerings through acquisitions and new program launches is a smart move in the evolving education landscape. The expansion into dental, nursing and allied health professions through Concorde Career Colleges broadens their market reach and reduces dependency on a single sector. The plan to launch six new programs annually demonstrates adaptability to workforce needs.
The company's focus on employer partnerships is crucial, as it enhances graduate employability and strengthens industry connections. However, the rapid expansion plan (two new campuses yearly) may pose challenges in maintaining educational quality and consistency across locations. Investors should monitor student outcomes and accreditation status as key indicators of long-term sustainability in this growth-focused strategy.
UTI's strategy capitalizes on the growing demand for skilled workers in the U.S., a trend likely to continue due to technological advancements and an aging workforce. The company's diversification into multiple trades and healthcare professions positions it well to adapt to shifting labor market needs. The planned expansion could significantly increase UTI's market share in the for-profit education sector.
However, investors should be aware of potential risks. The for-profit education industry faces ongoing regulatory scrutiny and changes in government policies could impact growth plans. Additionally, the projected
Strategy expected to deliver approximately 10 percent revenue CAGR and expand Adjusted EBITDA margin to nearly 20 percent through fiscal 2029
The second phase of the North Star Strategy is expected to deliver approximately
"Five years ago, we launched the first phase of the North Star Strategy with a singular vision: to realize the company's fullest potential as a partner in solving the country's shortage of skilled collar workers," said Jerome Grant, CEO, Universal Technical Institute. "We achieved significant milestones in the years since, including nearly tripling the number of campus locations and more than doubling the number of students we serve; more than doubling our revenue; and a more than five times increase in our profitability."
Grant continued, "As we near the successful implementation of the first phase of the strategy, our company is stronger, more diverse and resilient. We are now prepared to embrace the ambitious agenda we have set for the strategy's second phase, which we believe will significantly increase the company's value through impressive revenue growth and expanded profitability."
Added Todd Hitchcock, EVP and Chief Strategy and Transformation Officer, "As we realize the success of this first phase, we are strongly positioned to explore additional opportunities to support the critical need for highly trained, skilled collar workers in
Under the leadership of CEO Grant and his senior management team, the company completed the acquisitions of MIAT College of Technology and Concorde to expand its education offerings and geographic reach; established two new UTI campuses in
"As we implement the second phase of our strategy, we will opportunistically explore additional strategic acquisitions that are consistent with our mission, which would further enhance our planned growth trajectory," said Grant. "Taken together, the three tenets of our strategy will allow us to reach even more students with industry-aligned workforce programs that demonstrate strong student outcomes, while also increasing the financial strength of the company."
On Tuesday, August 6, CEO Grant and CFO Troy Anderson will host a conference call to discuss the financial and operational results for the fiscal third quarter that ended on June 30, 2024. They also will discuss the key elements of the North Star Strategy and related expectations over the next five years. More information about the call is available here.
For more information about Universal Technical Institute, Inc., visit investor.uti.edu.
About Universal Technical Institute, Inc.
Universal Technical Institute, Inc. (NYSE: UTI) provides students with the practical skills and knowledge required by employers. Founded in 1965, the company has grown into a national network of campuses offering programs through its two divisions of UTI and Concorde Career Colleges. The UTI division focuses on transportation, skilled trades and energy education programs. The Concorde division specializes in nursing, dental and allied health professions. Under the leadership of CEO Jerome Grant, UTI is recognized for its excellence in career education and its impact on workforce development. For more information, visit www.uti.edu or www.concorde.edu, visit us on LinkedIn at @UniversalTechnicalInstitute and @Concorde Career Colleges, or on X (formerly Twitter) @news_UTI or @ConcordeCareer.
Media Contact:
Susan Aspey
saspey@uti.edu
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SOURCE Universal Technical Institute, Inc.
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