Argan, Inc. Reports Second Quarter Fiscal 2027 Results

Argan posts record Q2 revenue, earnings and adjusted EBITDA, boosts dividend and builds cash, while total project backlog declines from earlier levels.

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Record Revenue of $384 Million; Record Net Income of $53.3 Million

ARLINGTON, Va.--(BUSINESS WIRE)-- Argan, Inc. (NYSE: AGX) (“Argan” or the “Company”) today announces financial results for its second quarter of fiscal year 2027 ended July 31, 2026. The Company will host an investor conference call today, September 2, 2026, at 5:00 p.m. ET.

Consolidated Financial Highlights ($ in thousands, except per share data)
		July 31,
For the Quarter Ended:		2026			2025			Change
Revenues		$	383,976		$	237,743		$	146,233
Gross profit			74,218			44,267			29,951
Gross margin %			19.3	%		18.6	%		0.7	%
Net income		$	53,302		$	35,275		$	18,027
Diluted earnings per share			3.76			2.50			1.26
Adjusted EBITDA(1)			70,030			38,490			31,540
Adjusted EBITDA margin(1)			18.2	%		16.2	%		2.0	%
Cash dividends per share		$	0.500		$	0.375		$	0.125

		July 31,
For the Six Months Ended:		2026			2025			Change
Revenues		$	674,930		$	431,403		$	243,527
Gross profit			135,332			81,130			54,202
Gross margin %			20.1	%		18.8	%		1.3	%
Net income		$	99,365		$	57,825		$	41,540
Diluted earnings per share			7.01			4.09			2.92
Adjusted EBITDA(1)			126,469			69,977			56,492
Adjusted EBITDA margin(1)			18.7	%		16.2	%		2.5	%
Cash dividends per share			1.000			0.750			0.250

		July 31,			January 31,
As of:		2026			2026			Change
Cash, cash equivalents and investments		$	1,028,446		$	894,981		$	133,465
Net liquidity(2)			440,360			421,000			19,360
Share repurchase treasury stock, at cost			144,914			114,361			30,553
Project backlog			2,518,000			2,929,000			(411,000)

(1)		Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. Please refer to “Non-GAAP Financial Measures.”
(2)		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 delivered a strong second quarter, highlighted by record revenue of $384 million, a gross margin of 19.3%, record net income of $53 million, and record adjusted EBITDA of $70 million.

“Our Power segment continued to execute extremely well during the second quarter, growing revenue 53% year over year to $301 million at a gross margin of 22%. Following the close of the quarter, we achieved final completion on the remaining project of our Midwest Solar and Battery Projects. In our Industrial segment, construction of our new fabrication facility continues to progress as planned, with expected completion next quarter. The plant will support heightened demand for the fabrication of vessels for data centers. In our Teledata segment, we closed the acquisition of ValCor Communications, a Connecticut-based provider of installation and repair services for information, communication, and data networks. The addition of ValCor increases our geographic presence and expands the segment’s client base to defense, aerospace, and technology clients in the region.

“We are energized by the opportunities we are seeing across all three of our business segments and believe that our diverse capabilities, proven track record of excellent execution, and strong balance sheet position us well to benefit from the current demand environment. This is an exciting time for Argan and we remain focused on capturing the right projects with the right partners in the right geographies.”

Second Quarter Results

Consolidated revenues for the quarter ended July 31, 2026, were $384.0 million, an increase of $146.2 million, or 61.5%, from consolidated revenues of $237.7 million reported for the comparable prior-year quarter. The year-over-year increase reflects higher revenues across all of the Company’s business segments. In the Power segment, revenue growth was driven by the continued ramp-up of construction activities on several contracts that have not yet reached peak construction.

For the quarter ended July 31, 2026, Argan's consolidated gross profit was $74.2 million, or 19.3% of consolidated revenues, compared to $44.3 million, or 18.6% of consolidated revenues, for the quarter ended July 31, 2025. The gross profit percentage increased between periods primarily due to the changing mix of projects and contract types and strong execution in our Power segment. The increase in gross profit percentage was partially offset by decreased performance on certain projects in our Industrial and Teledata segments.

Selling, general and administrative expenses were $17.4 million and $14.2 million for the three months ended July 31, 2026 and 2025, respectively, and represented 4.5% and 6.0% of corresponding consolidated revenues, respectively.

Other income, net, for the three months ended July 31, 2026 was $10.1 million, which primarily reflected investment income earned during the period.

For the quarter ended July 31, 2026, Argan achieved net income of $53.3 million, or $3.76 per diluted share, compared to $35.3 million, or $2.50 per diluted share, for last year’s second quarter. EBITDA for the quarter ended July 31, 2026 increased to $67.6 million compared to $36.2 million for the same quarter of last year. Adjusted EBITDA for the quarter ended July 31, 2026 increased to $70.0 million compared to $38.5 million for the same quarter of last year.

Argan continues to generate significant cash flow and increased its total balance of cash, cash equivalents and investments during the quarter. The total balances were $1.03 billion and $895.0 million as of July 31, 2026 and January 31, 2026, respectively. Net liquidity was $440.4 million at July 31, 2026 and $421.0 million at January 31, 2026; furthermore, the Company had no debt.

First Six Months Results

Consolidated revenues for the six months ended July 31, 2026, were $674.9 million, an increase of $243.5 million, or 56.5%, from consolidated revenues of $431.4 million reported for the comparable prior-year period. For the six months ended July 31, 2026, consolidated gross profit increased to approximately $135.3 million, or 20.1% of consolidated revenues, compared to consolidated gross profit of $81.1 million, or 18.8% of consolidated revenues, reported for the six months ended July 31, 2025.

For the six months ended July 31, 2026, Argan achieved net income of $99.4 million, or $7.01 per diluted share, versus net income of $57.8 million, or $4.09 per diluted share, for last year’s comparable period. EBITDA for the six months ended July 31, 2026 increased to $122.0 million compared to $66.5 million in the same period of last year. Adjusted EBITDA for the six months ended July 31, 2026 increased to $126.5 million compared to $70.0 million for the same period of last year.

As of July 31, 2026, consolidated project backlog was approximately $2.5 billion, as compared to approximately $2.9 billion at January 31, 2026.

Conference Call and Webcast

Argan will host a conference call and webcast for investors today, September 2, 2026, 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: 327373.

The call and the accompanying slide deck will also be webcast at:

https://www.webcaster5.com/Webcast/Page/2961/54404

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 16, 2026, and can be accessed by dialing 877-481-4010 (domestic) or 919-882-2331 (international). The replay access code is 54404. A replay of the webcast can be accessed until September 2, 2027.

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 teledata 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”), Adjusted EBITDA, and Adjusted EBITDA margin, each of which is a non-GAAP financial measure. The Company defines Adjusted EBITDA as EBITDA adjusted to exclude the impact of non-cash stock-based compensation expense. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by total revenues.

The Company believes these non-GAAP financial measures provide useful supplemental information to management and investors in evaluating the Company's operating performance because they exclude certain items that may not be indicative of the Company's core operating results or may affect comparability between periods or among companies with different capital structures, tax positions, depreciation policies, or equity compensation practices. Adjusted EBITDA and Adjusted EBITDA margin exclude stock-based compensation expense, a non-cash item that management believes impacts the comparability of operating results between reporting periods.

These non-GAAP financial measures should be considered in conjunction with, and not as substitutes for, the GAAP financial information presented in this press release. These measures have limitations as analytical tools because they exclude certain items, including interest, income tax expense, depreciation and amortization expense, and in the case of Adjusted EBITDA and Adjusted EBITDA margin, stock-based compensation expense. The methods used by the Company to calculate these non-GAAP financial measures may differ from methods used by other companies and, as a result, may not be comparable to similarly titled measures reported by other companies. Financial tables at the end of this press release provide reconciliations of these non-GAAP financial measures to the most directly 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,
		2026			2025			2026			2025
REVENUES		$	383,976		$	237,743		$	674,930		$	431,403
Cost of revenues			309,758			193,476			539,598			350,273
GROSS PROFIT			74,218			44,267			135,332			81,130
Selling, general and administrative expenses			17,413			14,212			33,132			26,733
INCOME FROM OPERATIONS			56,805			30,055			102,200			54,397
Other income, net			10,083			5,581			18,457			11,025
INCOME BEFORE INCOME TAXES			66,888			35,636			120,657			65,422
Provision for income taxes			13,586			361			21,292			7,597
NET INCOME			53,302			35,275			99,365			57,825
OTHER COMPREHENSIVE INCOME, NET OF TAXES
Foreign currency translation adjustments			(267)			(251)			(808)			3,370
Net unrealized (losses) gains on available-for-sale securities			(4,550)			(1,082)			(7,209)			1,598
COMPREHENSIVE INCOME		$	48,485		$	33,942		$	91,348		$	62,793
EARNINGS PER SHARE
Basic		$	3.80		$	2.57		$	7.10		$	4.23
Diluted		$	3.76		$	2.50		$	7.01		$	4.09
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic			14,028			13,731			13,994			13,680
Diluted			14,164			14,131			14,181			14,122
CASH DIVIDENDS PER SHARE		$	0.500		$	0.375		$	1.000		$	0.750

Argan, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Dollars in thousands, except per share data) (Unaudited)
		July 31,			January 31,
		2026			2026
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	364,481		$	339,481
Investments			663,965			555,500
Accounts receivable, net			180,356			133,677
Contract assets			35,713			43,397
Other current assets			73,955			60,202
TOTAL CURRENT ASSETS			1,318,470			1,132,257
Property, plant and equipment, net			22,797			16,596
Goodwill			30,670			28,033
Intangible assets, net			6,030			1,450
Right-of-use and other assets			23,003			8,018
TOTAL ASSETS		$	1,400,970		$	1,186,354
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable		$	115,212		$	107,540
Accrued expenses			135,878			89,748
Contract liabilities			627,020			513,969
TOTAL CURRENT LIABILITIES			878,110			711,257
Deferred taxes, net			3,061			6,555
Noncurrent liabilities			12,960			6,280
TOTAL LIABILITIES			894,131			724,092
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; 14,032,792 and 13,950,712 shares outstanding at July 31, 2026 and January 31, 2026, respectively			2,374			2,374
Additional paid-in capital			165,039			167,234
Retained earnings			491,539			406,197
Treasury stock, at cost – 1,795,497 and 1,877,577 shares at July 31, 2026 and January 31, 2026, respectively			(144,914)			(114,361)
Accumulated other comprehensive (loss) income			(7,199)			818
TOTAL STOCKHOLDERS’ EQUITY			506,839			462,262
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	1,400,970		$	1,186,354

Argan, Inc. and Subsidiaries Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations (Dollars in thousands) (Unaudited)
		Three Months Ended
		July 31,
		2026			2025
Revenues		$	383,976		$	237,743
Net income, as reported		$	53,302		$	35,275
Provision for income taxes			13,586			361
Depreciation			645			491
Amortization of intangible assets			75			98
EBITDA			67,608			36,225
Stock-based compensation expense			2,422			2,265
Adjusted EBITDA		$	70,030		$	38,490
Adjusted EBITDA margin			18.2	%		16.2	%

		Six Months Ended
		July 31,
		2026			2025
Revenues		$	674,930		$	431,403
Net income, as reported		$	99,365		$	57,825
Provision for income taxes			21,292			7,597
Depreciation			1,204			906
Amortization of intangible assets			150			196
EBITDA			122,011			66,524
Stock-based compensation expense			4,458			3,453
Adjusted EBITDA		$	126,469		$	69,977
Adjusted EBITDA margin			18.7	%		16.2	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260902354415/en/

Investor Relations Contacts:
John Nesbett/Jennifer Belodeau
IMS Investor Relations
203.972.9200
argan@imsinvestorrelations.com

Source: Argan, Inc.

Key Terms

adjusted ebitda financial

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

net liquidity financial

Net liquidity is the amount of cash or easily accessible funds a person or organization has after subtracting any short-term debts or obligations. It shows how much money is truly available for spending, investing, or covering immediate needs. For investors, net liquidity indicates financial flexibility and stability, helping them assess how easily they can respond to opportunities or unexpected expenses.

non-gaap financial measures financial

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

stock-based compensation expense financial

Stock-based compensation expense is the value that a company records when it gives employees or executives shares or options to buy shares as part of their pay. It matters because it shows the true cost of paying employees this way, which can affect the company's profits and how investors see its financial health.

contract liabilities financial

Contract liabilities are amounts a company has been paid in advance for goods or services it still owes to customers — think of them like gift cards or prepaid subscriptions the company must fulfill later. For investors, they show promised future work or deliveries that will turn into revenue over time, reveal cash already collected, and help assess whether a firm has a backlog of obligations that could affect future earnings and cash flow.