Argan, Inc. Reports Third Quarter Fiscal 2026 Results
Reports Record Backlog of
Consolidated Financial Highlights |
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($ in thousands, except per share data) |
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October 31, |
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For the Quarter Ended: |
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2025 |
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2024 |
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Change |
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Revenues |
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$ |
251,153 |
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$ |
257,008 |
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$ |
(5,855) |
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Gross profit |
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46,949 |
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44,327 |
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2,622 |
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Gross margin % |
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18.7 |
% |
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17.2 |
% |
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1.5 |
% |
Net income |
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$ |
30,737 |
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$ |
28,010 |
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$ |
2,727 |
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Diluted earnings per share |
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2.17 |
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2.00 |
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0.17 |
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EBITDA |
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40,297 |
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37,509 |
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2,788 |
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EBITDA as a % of revenues |
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16.0 |
% |
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14.6 |
% |
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1.4 |
% |
Cash dividends per share |
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0.500 |
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0.375 |
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0.125 |
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October 31, |
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For the Nine Months Ended: |
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2025 |
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2024 |
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Change |
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Revenues |
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$ |
682,556 |
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$ |
641,705 |
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$ |
40,851 |
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Gross profit |
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128,079 |
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93,376 |
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34,703 |
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Gross margin % |
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18.8 |
% |
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14.6 |
% |
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4.2 |
% |
Net income |
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$ |
88,562 |
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$ |
54,090 |
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$ |
34,472 |
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Diluted earnings per share |
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6.27 |
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3.91 |
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2.36 |
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EBITDA |
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106,821 |
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74,241 |
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32,580 |
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EBITDA as a % of revenues |
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15.7 |
% |
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11.6 |
% |
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4.1 |
% |
Cash dividends per share |
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1.250 |
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0.975 |
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0.275 |
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October 31, |
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January 31, |
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As of: |
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2025 |
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2025 |
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Change |
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Cash, cash equivalents and investments |
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$ |
726,821 |
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$ |
525,137 |
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$ |
201,684 |
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Net liquidity (1) |
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377,311 |
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301,443 |
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75,868 |
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Share repurchase treasury stock, at cost |
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113,590 |
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105,643 |
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7,947 |
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Project backlog |
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2,973,000 |
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1,361,000 |
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1,612,000 |
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(1) |
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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 solid third quarter results highlighted by our record backlog of
“There is significant urgency around the construction of new, combined-cycle natural gas projects as older facilities reach the end of their useful life and new resources are needed to meet the growing demand for reliable energy to power the ‘electrification of everything’. Moving forward, we expect to periodically add projects to our backlog as power plant construction projects underway make progress and are completed. With our visibility today, we are optimistic about our ability to drive revenue growth and enhanced profitability for many years to come. As we move through the close of fiscal 2026, we remain committed to our disciplined approach to capitalizing on the strong demand we are seeing for our services, with a focus on pursuing the right projects with the right partners in the right geographies.”
Third Quarter Results
Consolidated revenues for the quarter ended October 31, 2025, were
For the quarter ended October 31, 2025, Argan’s consolidated gross profit was
Selling, general and administrative expenses were
Other income, net, for the three months ended October 31, 2025 was
For the quarter ended October 31, 2025, Argan achieved net income of
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
First Nine Months Results
Consolidated revenues for the nine months ended October 31, 2025 were
For the nine months ended October 31, 2025, Argan achieved net income of
As of October 31, 2025, consolidated project backlog was approximately
Conference Call and Webcast
Argan will host a conference call and webcast for investors today, December 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: 510701.
The call and the accompanying slide deck will also be webcast at: https://www.webcaster5.com/Webcast/Page/2961/53159
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 December 18, 2025, and can be accessed by dialing 877-481-4010 (domestic) or 919-882-2331 (international). The replay access code is 53159. A replay of the webcast can be accessed until December 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
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 |
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CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
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(In thousands, except per share data) |
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(Unaudited) |
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Three Months Ended |
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Nine Months Ended |
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October 31, |
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October 31, |
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2025 |
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2024 |
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2025 |
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2024 |
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REVENUES |
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$ |
251,153 |
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$ |
257,008 |
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$ |
682,556 |
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$ |
641,705 |
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Cost of revenues |
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204,204 |
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212,681 |
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554,477 |
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548,329 |
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GROSS PROFIT |
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46,949 |
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44,327 |
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128,079 |
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93,376 |
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Selling, general and administrative expenses |
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14,316 |
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13,995 |
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41,049 |
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37,848 |
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INCOME FROM OPERATIONS |
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32,633 |
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30,332 |
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87,030 |
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55,528 |
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Other income, net |
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7,061 |
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6,646 |
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18,086 |
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17,044 |
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INCOME BEFORE INCOME TAXES |
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39,694 |
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36,978 |
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105,116 |
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72,572 |
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Provision for income taxes |
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8,957 |
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8,968 |
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16,554 |
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18,482 |
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NET INCOME |
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30,737 |
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28,010 |
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88,562 |
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54,090 |
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OTHER COMPREHENSIVE INCOME, NET OF TAXES |
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Foreign currency translation adjustments |
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165 |
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(957 |
) |
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3,535 |
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(1,933 |
) |
Net unrealized gains (losses) on available-for-sale securities |
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1,296 |
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(659 |
) |
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2,894 |
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(169 |
) |
COMPREHENSIVE INCOME |
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$ |
32,198 |
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$ |
26,394 |
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$ |
94,991 |
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$ |
51,988 |
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EARNINGS PER SHARE |
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Basic |
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$ |
2.22 |
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$ |
2.07 |
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$ |
6.45 |
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$ |
4.04 |
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Diluted |
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$ |
2.17 |
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$ |
2.00 |
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$ |
6.27 |
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$ |
3.91 |
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WEIGHTED AVERAGE SHARES OUTSTANDING |
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Basic |
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13,830 |
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13,530 |
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13,731 |
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13,398 |
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Diluted |
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14,157 |
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14,034 |
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14,134 |
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13,830 |
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CASH DIVIDENDS PER SHARE |
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$ |
0.500 |
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$ |
0.375 |
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$ |
1.250 |
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$ |
0.975 |
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ARGAN, INC. AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Dollars in thousands, except per share data) |
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(Unaudited) |
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October 31, |
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January 31, |
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2025 |
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2025 |
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ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents |
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$ |
306,294 |
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$ |
145,263 |
Investments |
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420,527 |
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379,874 |
Accounts receivable, net |
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170,381 |
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175,808 |
Contract assets |
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38,402 |
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28,430 |
Other current assets |
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61,567 |
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51,925 |
TOTAL CURRENT ASSETS |
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997,171 |
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781,300 |
Property, plant and equipment, net |
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15,777 |
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14,463 |
Goodwill |
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|
28,033 |
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28,033 |
Intangible assets, net |
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1,532 |
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1,826 |
Deferred taxes, net |
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— |
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|
552 |
Right-of-use and other assets |
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|
8,356 |
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|
10,053 |
TOTAL ASSETS |
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$ |
1,050,869 |
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$ |
836,227 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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CURRENT LIABILITIES |
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Accounts payable |
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$ |
100,798 |
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$ |
97,297 |
Accrued expenses |
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67,144 |
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83,319 |
Contract liabilities |
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|
451,918 |
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|
299,241 |
TOTAL CURRENT LIABILITIES |
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|
619,860 |
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|
479,857 |
Deferred taxes, net |
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|
6,116 |
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— |
Noncurrent liabilities |
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|
5,183 |
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|
4,513 |
TOTAL LIABILITIES |
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|
631,159 |
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|
484,370 |
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STOCKHOLDERS’ EQUITY |
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Preferred stock, par value |
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— |
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— |
Common stock, par value |
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|
2,374 |
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|
2,374 |
Additional paid-in capital |
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|
167,075 |
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|
168,966 |
Retained earnings |
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|
363,960 |
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|
292,698 |
Treasury stock, at cost – 1,954,879 and 2,194,075 shares at October 31, 2025 and January 31, 2025, respectively |
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(113,590) |
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|
(105,643) |
Accumulated other comprehensive loss |
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|
(109) |
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|
(6,538) |
TOTAL STOCKHOLDERS’ EQUITY |
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|
419,710 |
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|
351,857 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
1,050,869 |
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$ |
836,227 |
ARGAN, INC. AND SUBSIDIARIES |
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RECONCILIATION TO EBITDA |
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(In thousands) |
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(Unaudited) |
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Three Months Ended |
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October 31, |
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2025 |
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2024 |
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Net income, as reported |
|
$ |
30,737 |
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$ |
28,010 |
Provision for income taxes |
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|
8,957 |
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|
8,968 |
Depreciation |
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|
505 |
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|
433 |
Amortization of intangible assets |
|
|
98 |
|
|
98 |
EBITDA |
|
$ |
40,297 |
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$ |
37,509 |
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Nine Months Ended |
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October 31, |
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2025 |
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2024 |
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Net income, as reported |
|
$ |
88,562 |
|
$ |
54,090 |
Provision for income taxes |
|
|
16,554 |
|
|
18,482 |
Depreciation |
|
|
1,411 |
|
|
1,376 |
Amortization of intangible assets |
|
|
294 |
|
|
293 |
EBITDA |
|
$ |
106,821 |
|
$ |
74,241 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20251204720589/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.
