Argan, Inc. Reports Second Quarter Fiscal 2026 Results

Reports Record Backlog of $2.0 Billion

ARLINGTON, Va.--(BUSINESS WIRE)-- Argan, Inc. (NYSE: AGX) (“Argan” or the “Company”) today announces financial results for its second quarter of fiscal year 2026 ended July 31, 2025. The Company will host an investor conference call today, September 4, 2025, at 5:00 p.m. ET.

Consolidated Financial Highlights

($ in thousands, except per share data)

		July 31,
For the Quarter Ended:		2025			2024			Change
Revenues		$	237,743		$	227,015		$	10,728
Gross profit			44,267			31,105			13,162
Gross margin %			18.6	%		13.7	%		4.9	%
Net income		$	35,275		$	18,198		$	17,077
Diluted earnings per share			2.50			1.31			1.19
EBITDA			36,225			24,842			11,383
EBITDA as a % of revenues			15.2	%		10.9	%		4.3	%
Cash dividends per share			0.375			0.300			0.075

		July 31,
For the Six Months Ended:		2025			2024			Change
Revenues		$	431,403		$	384,697		$	46,706
Gross profit			81,130			49,049			32,081
Gross margin %			18.8	%		12.8	%		6.0	%
Net income		$	57,825		$	26,080		$	31,745
Diluted income per share			4.09			1.90			2.19
EBITDA			66,524			36,732			29,792
EBITDA as a % of revenues			15.4	%		9.5	%		5.9	%
Cash dividends per share			0.750			0.600			0.150

		July 31,			January 31,
As of:		2025			2025			Change
Cash, cash equivalents and investments		$	572,190		$	525,137		$	47,053
Net liquidity (1)			344,462			301,443			43,019
Share repurchase treasury stock, at cost			114,520			105,643			8,877
Project backlog			1,953,000			1,361,000			592,000

(1)

Net liquidity, or working capital, is defined as total current assets less total current liabilities.

David Watson, President and Chief Executive Officer of Argan, commented, “We drove continued momentum in the second quarter of fiscal 2026, as reflected in consolidated revenue of $237.7 million, gross margin of 18.6%, significantly improved diluted earnings per share of $2.50 and substantially increased EBITDA of $36.2 million. Additionally, demand for our capabilities across all of our business segments remains strong, with record backlog of $2.0 billion.

“We achieved a few project milestones in the quarter, reflecting excellent execution and solid progress within our project base. During the quarter, we completed our LNG project in Louisiana and achieved first fire at one of our Trumbull units, followed by first fire at the second Trumbull unit occurring in August. Several of our renewable projects advanced meaningfully this summer, as cooperative weather allowed us to make significant progress. Additionally, in July we announced that we entered into an engineering, procurement and construction services contract for the Platin Power Station located in Ireland. The facility will provide approximately 170 MW of generation capacity to the grid during periods of high demand and supply shortfall.

“With our diverse capabilities, longstanding customer and vendor relationships, and track record of success, Argan remains well positioned to benefit from the current demand environment as the industry responds to the urgent need for reliable energy resources to strengthen the power grid. The ongoing electrification of everything requires an uninterrupted supply of reliable, high-quality energy, and we are a proven partner in constructing the types of large and complex power generating facilities that are necessary to support the unprecedented growth in power demand. We’re excited about the opportunities we’re seeing in the marketplace and remain focused on our disciplined approach to pursuing and winning the right projects, with the right partners, in the right geographies.”

Second Quarter Results

Consolidated revenues for the quarter ended July 31, 2025 were $237.7 million, an increase of $10.7 million, or 4.7%, from consolidated revenues of $227.0 million reported for the comparable prior year quarter. The increase in the number of current projects and contract backlog has resulted in increased project activity and the related revenues compared to the prior year quarter. During the second quarter of fiscal 2026, several recently awarded power plant projects were in their early stages of activity with limited revenues, while the Company’s mature projects continued to generate significant activity.

For the quarter ended July 31, 2025, Argan’s consolidated gross profit was $44.3 million, or 18.6% of consolidated revenues. Consolidated gross profit for the quarter ended July 31, 2024 was $31.1 million, or 13.7% of consolidated revenues. The increase from the comparable prior year quarter is primarily due to improved gross profit margins for the Power Industry Services segment.

Selling, general and administrative expenses were $14.2 million and $12.4 million for the three months ended July 31, 2025 and 2024, respectively, and represented 6.0% and 5.5% of corresponding consolidated revenues, respectively.

Other income, net, for the three months ended July 31, 2025 was $5.6 million, which primarily reflected investment income earned during the period. During the quarter ended July 31, 2025, the Company recorded income tax expense of $0.4 million on pre-tax book income of $35.6 million, which reflects a meaningful benefit from the favorable deductions resulting from stock option exercises during the period. For the comparable period last year, Argan recorded income tax expense of $6.1 million on pre-tax book income of $24.3 million.

For the quarter ended July 31, 2025, Argan achieved net income of $35.3 million, or a record $2.50 per diluted share, compared to $18.2 million, or $1.31 per diluted share, for last year’s second quarter. EBITDA for the quarter ended July 31, 2025 increased to $36.2 million compared to $24.8 million in the same quarter of last year.

Argan continues to generate signficant cash flow and increased its total balance of cash, cash equivalents and investments during the quarter. The total balances were $572.2 million and $525.1 million as of July 31, 2025 and January 31, 2025, respectively. Balance sheet net liquidity was $344.5 million at July 31, 2025 and $301.4 million at January 31, 2025; furthermore, the Company had no debt.

First Six Months Results

Consolidated revenues for the six months ended July 31, 2025 were $431.4 million, an increase of $46.7 million, or 12.1%, from consolidated revenues of $384.7 million reported for the comparable prior year period. For the six months ended July 31, 2025, consolidated gross profit increased to approximately $81.1 million, or 18.8% of consolidated revenues, compared to consolidated gross profit of $49.0 million, or 12.8% of consolidated revenues, reported for the six months ended July 31, 2024.

For the six months ended July 31, 2025, Argan achieved net income of $57.8 million, or $4.09 per diluted share, versus net income of $26.1 million, or $1.90 per diluted share, for last year’s comparable period. EBITDA for the six months ended July 31, 2025 increased to $66.5 million compared to $36.7 million in the same period of last year.

As of July 31, 2025, consolidated project backlog was approximately $2.0 billion, as compared to approximately $1.4 billion at January 31, 2025.

Conference Call and Webcast

Argan will host a conference call and webcast for investors today, September 4, 2025, at 5:00 p.m. ET.

Domestic stockholders and interested parties may participate in the conference call by dialing (888) 506-0062 and international participants should dial (973) 528-0011; all callers shall use access code: 230123.

The call and the accompanying slide deck will also be webcast at:
https://www.webcaster4.com/Webcast/Page/2961/52705

The conference call and slide deck may also be accessed via the Investor Center section of the Company’s website at https://arganinc.com/investor-center. Please allow extra time prior to the call to visit the site.

A replay of the teleconference will be available until September 18, 2025, and can be accessed by dialing 877-481-4010 (domestic) or 919-882-2331 (international). The replay access code is 52705. A replay of the webcast can be accessed until September 4, 2026.

About Argan

Argan’s primary business is providing a full range of construction and related services to the power industry. Argan’s service offerings focus on the engineering, procurement and construction of natural gas-fired power plants and renewable energy facilities, along with related commissioning, maintenance, project development and technical consulting services, through its Gemma Power Systems and Atlantic Projects Company operations. Argan also owns The Roberts Company, which is a fully integrated industrial construction, fabrication and plant services company, and SMC Infrastructure Solutions, which provides telecommunications infrastructure services.

Non-GAAP Financial Measures

The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”). Within this press release, the Company makes reference to earnings before interest, taxes, depreciation and amortization (“EBITDA”), a non-GAAP financial measure. The Company believes that the non-GAAP financial measure described in this press release is important to management and investors because the measure supplements the understanding of Argan’s ongoing operating results, excluding the effects of capital structure, depreciation, amortization, and income tax rates. The non-GAAP financial measure referred to above should be considered in conjunction with, and not as a substitute for, the GAAP financial information presented in this press release. Financial tables at the end of this press release provide a reconciliation of the non-GAAP financial measures to the comparable GAAP measures.

Safe Harbor Statement

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Reference is hereby made to the cautionary statements made by the Company with respect to risk factors set forth in its most recent reports on Form 10-K, Forms 10-Q and other SEC filings. The Company’s future financial performance is subject to risks and uncertainties including, but not limited to, the successful addition of new contracts to project backlog, the receipt of corresponding notices to proceed with contract activities, and the Company’s ability to successfully complete the projects that it obtains. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to the risk factors highlighted above and described regularly in the Company’s SEC filings.

ARGAN, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (In thousands, except per share data) (Unaudited)
		Three Months Ended								Six Months Ended
		July 31,								July 31,
		2025				2024				2025			2024
REVENUES		$	237,743			$	227,015			$	431,403		$	384,697
Cost of revenues			193,476				195,910				350,273			335,648
GROSS PROFIT			44,267				31,105				81,130			49,049
Selling, general and administrative expenses			14,212				12,428				26,733			23,853
INCOME FROM OPERATIONS			30,055				18,677				54,397			25,196
Other income, net			5,581				5,604				11,025			10,398
INCOME BEFORE INCOME TAXES			35,636				24,281				65,422			35,594
Income tax expense			361				6,083				7,597			9,514
NET INCOME			35,275				18,198				57,825			26,080
OTHER COMPREHENSIVE INCOME, NET OF TAXES
Foreign currency translation adjustments			(251	)			(186	)			3,370			(976	)
Net unrealized (losses) gains on available-for-sale securities			(1,082	)			1,459				1,598			490
COMPREHENSIVE INCOME		$	33,942			$	19,471			$	62,793		$	25,594
EARNINGS PER SHARE
Basic		$	2.57			$	1.36			$	4.23		$	1.96
Diluted		$	2.50			$	1.31			$	4.09		$	1.90
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic			13,731				13,403				13,680			13,331
Diluted			14,131				13,880				14,122			13,727
CASH DIVIDENDS PER SHARE		$	0.375			$	0.300			$	0.750		$	0.600

ARGAN, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share data)
		July 31,				January 31,
		2025				2025
		(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	177,850			$	145,263
Investments			394,340				379,874
Accounts receivable, net			179,155				175,808
Contract assets			23,741				28,430
Other current assets			53,698				51,925
TOTAL CURRENT ASSETS			828,784				781,300
Property, plant and equipment, net			15,714				14,463
Goodwill			28,033				28,033
Intangible assets, net			1,630				1,826
Deferred taxes, net			—				552
Right-of-use and other assets			8,543				10,053
TOTAL ASSETS		$	882,704			$	836,227
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable		$	96,049			$	97,297
Accrued expenses			71,453				83,319
Contract liabilities			316,820				299,241
TOTAL CURRENT LIABILITIES			484,322				479,857
Deferred taxes, net			742				—
Noncurrent liabilities			4,464				4,513
TOTAL LIABILITIES			489,528				484,370
STOCKHOLDERS’ EQUITY
Preferred stock, par value $0.10 per share – 500,000 shares authorized; no shares issued and outstanding			—				—
Common stock, par value $0.15 per share – 30,000,000 shares authorized; 15,828,289 shares issued; 13,811,575 and 13,634,214 shares outstanding at July 31, 2025 and January 31, 2025, respectively			2,374				2,374
Additional paid-in capital			166,616				168,966
Retained earnings			340,276				292,698
Treasury stock, at cost – 2,016,714 and 2,194,075 shares at July 31, 2025 and January 31, 2025, respectively			(114,520	)			(105,643	)
Accumulated other comprehensive loss			(1,570	)			(6,538	)
TOTAL STOCKHOLDERS’ EQUITY			393,176				351,857
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	882,704			$	836,227

ARGAN, INC. AND SUBSIDIARIES RECONCILIATION TO EBITDA (In thousands) (Unaudited)
		Three Months Ended
		July 31,
		2025			2024
Net income, as reported		$	35,275		$	18,198
Income tax expense			361			6,083
Depreciation			491			463
Amortization of intangible assets			98			98
EBITDA		$	36,225		$	24,842
		Six Months Ended
		July 31,
		2025			2024
Net income, as reported		$	57,825		$	26,080
Income tax expense			7,597			9,514
Depreciation			906			943
Amortization of intangible assets			196			195
EBITDA		$	66,524		$	36,732

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250904956158/en/

Company Contact:

David Watson

301.315.0027



Investor Relations Contacts:

John Nesbett/Jennifer Belodeau

IMS Investor Relations

203.972.9200

argan@imsinvestorrelations.com

Source: Argan, Inc.