Lincoln Educational Services Corporation (NASDAQ: LINC) announced plans to expand into the Phoenix, Arizona metropolitan area with its first campus in the state. Located in North Tempe, the new facility will occupy approximately 90,000 square feet and is projected to open during the first quarter of 2028, subject to regulatory approvals and timely build-out.

The campus will initially offer career-focused training in four high-demand skilled trades: Automotive Technology, Electrical and Electronic Systems Technology (EEST), Heating, Ventilation, and Air Conditioning (HVAC), and Welding. The expansion aims to address strong employer demand for skilled technicians in the region, driven by growth in advanced manufacturing, construction, transportation, semiconductor production, and infrastructure.

Expansion Timeline and Portfolio

The Tempe location marks the company's 26th campus nationwide. This addition follows recent openings in East Point, Georgia, and Houston, Texas, as well as expansions in Philadelphia and Nashville. Lincoln Educational Services is currently constructing three additional campuses with the following expected opening dates:

Scott Shaw, President and Chief Executive Officer, stated that establishing a presence in Arizona allows the company to serve the fast-growing Phoenix-Mesa-Chandler economy. He emphasized that the new campus reflects a continued commitment to the company's core programs in electrical, HVAC, welding, and automotive training.

Strategic Context

Lincoln Educational Services has operated since 1946 and currently runs 22 campuses across 12 states under the brands Lincoln Technical Institute, Lincoln College of Technology, and Nashville Auto Diesel College. The company provides training in five principal areas: automotive technology, health sciences, skilled trades, business and information technology, and hospitality services.

The decision to enter the Arizona market was influenced by the state's continued population growth and investment in key industrial sectors. Employers across these industries have reported strong demand for skilled technicians, prompting the company to expand access to technical education in the region.

Lincoln Educational Services Corporation reported second-quarter revenue of $142.6 million on August 10, 2026, marking a 22.4% increase from $116.5 million in the same period last year. The growth was primarily driven by a 14.5% rise in the average student population to 18,342 students, alongside tuition increases. This top-line expansion translated into a 42.4% jump in adjusted EBITDA to $12.7 million from $8.9 million, signaling improved operating leverage as the company scales its campus network across skilled trades and healthcare programs.

The filing details that educational services and facilities expenses increased by $12.8 million, or 27.4%, to $59.6 million. This cost growth was attributed to a larger student population, higher books and tools expenses due to program start timing, and $3.1 million in additional depreciation from capital investments. Selling, general, and administrative expenses rose 18.8% to $79.7 million, reflecting higher sales and marketing costs and an increased provision for credit losses. Corporate and other expenses reached $18.2 million, up from $16.4 million, primarily due to higher salaries and benefits supporting growth initiatives.

Cash flow generation strengthened significantly, with net cash from operating activities improving to $22.1 million generated versus $0.3 million in the prior year quarter. Total liquidity stood at approximately $143 million as of June 30, 2026, comprising $44.2 million in cash and cash equivalents and $99.0 million in available borrowings under its credit facility. The company completed the acquisition of its Melrose Park, Illinois campus property for $18.8 million in July, adding to its owned real estate portfolio.

What the Numbers Show

The divergence between revenue growth (22.4%) and adjusted EBITDA growth (42.4%) highlights successful operational scaling. While costs increased, they did so at a lower rate than revenue, allowing margins to expand. The 10.4% rise in ending student population to 18,904 underscores strong enrollment momentum, particularly in transportation and skilled trades, where starts surged 106.1% year-over-year to 4,844. This segment outpaced healthcare and other professions, which saw a more modest 39.4% increase in starts.

Management reiterated full-year 2026 guidance for revenue ($590–$600 million), adjusted EBITDA ($76–$80 million), and net income ($23–$26 million). However, capital expenditure guidance was raised by approximately $25 million to a range of $95–$100 million to support the new Suitland, Maryland campus and the Melrose Park acquisition. Student start growth guidance remains at 10–14%, despite a moderation to 1% growth in Q2 as fewer enrolled students attended their first day of class compared to expectations. President & CEO Scott Shaw noted that actions taken to address conversion trends are reaccelerating growth, with the August class expected to be one of the largest in company history.