UTI Stock Forecast & Price Target

Universal Technical Institute Inc. is poised for continued strong performance, supported by strong underlying demand and the execution of its North Star Strategy, which aims for a revenue compound annual growth rate (CAGR) of approximately 10% through a combination of same-store growth and new program launches. The strategy also targets an expansion of the adjusted EBITDA margin to around 20% by fiscal year 2029, up from 14% in fiscal year 2024. Moreover, the stock has demonstrated significant upward momentum, increasing 29% year-to-date and trading at a premium to its peer group in the postsecondary education sector.

Universal Technical Institute Inc. anticipates a decrease in adjusted EBITDA for FY/26 to $115.1 million, reflecting a margin decline to 12.8% from the previous 15.3%, alongside a reduction in GAAP EPS estimates to $0.90, indicating a year-over-year decrease of 13.5%. The forecast also highlights consistent declines in key financial metrics for both FY/26 and FY/27, with lower adjusted EBITDA and GAAP EPS expected amidst increased strategic growth investments. Additionally, while there are projections for improved revenue and earnings in FY/28 and FY/29, the immediate outlook for Q4/25 suggests stagnation, with a projected adjusted EBITDA of $36.3 million decreasing by 2.6% year-over-year and GAAP EPS expected to drop by 29.4%.