Why Is Universal Technical Institute Stock Down Today?

Universal Technical Institute (UTI) fell 6.892% in the fifteen minutes after its fiscal 2026 third-quarter report. Revenue grew 7.2% year-over-year to $218.9 million, with average full-time active students up 5.8% to 25,131 and new student starts up 10.9% to 6,342 — growth on nearly every operating metric. Net income fell to $2.3 million from $10.7 million a year earlier, and adjusted EBITDA fell 27.8%.

UTI operates trade and vocational schools training students for careers in transportation and skilled trades — automotive, diesel, collision repair, HVAC, welding — plus healthcare programs under its Concorde Career Colleges brand. Full-year 2026 guidance was narrowed: revenue to $893-900 million from $905-915 million, net income to $32-36 million from $40-45 million, and adjusted EBITDA to $100-103 million from $114-119 million. CEO Jerome Grant said demand is shifting toward skilled trades faster than anticipated, driving outperformance at newer campuses, but that fourth-quarter high school starts in auto and diesel programs are tracking below plan because the company missed the opportunity to reach every prospective student. CFO Bruce Schuman characterized the cut as reflecting timing and, to a lesser degree, mix considerations rather than a change in the underlying demand environment.

The company also cited about $9.0 million in the third quarter — roughly $35 million for the full year — of strategic growth expenses tied to new campus launches and an operating-model restructuring. A new campus in Atlanta/Smyrna opened in July with new-student enrollment about 30% above expectations, a sign the underlying growth strategy is working even as near-term guidance came down.