Argan posts record Q1 revenue and higher margins
Argan, Inc. reported a strong first quarter of fiscal 2027, delivering record revenue of $290.9 million, up 50.2% from the prior-year period.
Rhea-AI Filing Summary
Argan, Inc. reported a strong first quarter of fiscal 2027, delivering record revenue of $290.9 million, up 50.2% from the prior-year period. All operating segments contributed to the growth, led by increased construction activity in the Power segment.
Gross profit rose to $61.1 million with a gross margin of 21.0%, up from 19.0%. Net income more than doubled to $46.1 million, driving diluted earnings per share of $3.24 versus $1.60 a year earlier. Adjusted EBITDA increased to $56.4 million, reflecting a margin of 19.4%.
Argan ended April 30, 2026 with cash, cash equivalents and investments totaling $973.6 million, net liquidity of $421.4 million and no debt. Project backlog was approximately $2.8 billion, providing multi-year revenue visibility as the company invests in a new fabrication facility to support industrial and data center demand.
Positive
- Record growth and profitability: Revenue increased 50.2% to $290.9 million, gross margin improved to 21.0%, and net income more than doubled to $46.1 million, with Adjusted EBITDA rising to $56.4 million and a 19.4% margin.
Negative
- None.
Insights
Argan posted very strong growth with record revenue, higher margins, and a debt-free, cash-rich balance sheet.
Argan delivered a notable step-up in scale, with revenue rising 50.2% to $290.9 million and net income more than doubling to $46.1 million. Margin expansion in the Power segment and strong execution across all businesses supported this performance.
Profitability quality improved, with gross margin reaching 21.0% and Adjusted EBITDA margin increasing to 19.4%. At the same time, the company maintained a robust balance sheet, holding $973.6 million in cash, cash equivalents and investments, net liquidity of $421.4 million, and no debt.
Backlog was approximately $2.8 billion, down modestly from $2.9 billion at January 31, 2026 but still substantial relative to quarterly revenue. Construction of a new fabrication facility in North Carolina, expected to complete in Q3 fiscal 2027, positions Argan for ongoing opportunities tied to data centers and industrial projects.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Adjusted EBITDA margin financial
project backlog financial
non-GAAP financial measures financial
net liquidity financial
forward-looking statements regulatory
Earnings Snapshot
FAQ
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:
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Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Title of Each Class: | Trading Symbol(s): | Name of Each Exchange on | ||
Item 2.02. Results of Operations and Financial Condition.
On June 4, 2026, Argan, Inc. (“Argan”) issued a press release announcing its financial results for the three months ended April 30, 2026. A copy of Argan’s press release is attached to this report as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits
Exhibit No. | | Description |
99.1 | | Press Release issued by Argan on June 4, 2026 |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| ARGAN, INC. | ||||
Date: June 4, 2026 |
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| By: |
| /s/ Joshua S. Baugher | |
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| Joshua S. Baugher | |||
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| Senior Vice President, Chief Financial Officer and Treasurer | |||
Exhibit 99.1
Argan, Inc. Reports First Quarter Fiscal 2027 Results
Record Revenue of $291.0 Million; Backlog of $2.8 Billion
June 4, 2026 – ARLINGTON, VA – Argan, Inc. (NYSE: AGX) (“Argan” or the “Company”) today announces financial results for its first quarter of fiscal year 2027 ended April 30, 2026. The Company will host an investor conference call today, June 4, 2026, at 5:00 p.m. ET.
Consolidated Financial Highlights
($ in thousands, except per share data)
| | April 30, | | | |
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For the Quarter Ended: | | 2026 | | 2025 | | Change |
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Revenues | | $ | 290,954 | | $ | 193,660 | | $ | 97,294 | |
Gross profit | | | 61,114 | | | 36,863 | | | 24,251 | |
Gross margin % | |
| 21.0 | % |
| 19.0 | % |
| 2.0 | % |
Net income | | $ | 46,063 | | $ | 22,550 | | $ | 23,513 | |
Diluted earnings per share | | | 3.24 | | | 1.60 | | | 1.64 | |
Adjusted EBITDA(1) | | | 56,439 | | | 31,487 | | | 24,952 | |
Adjusted EBITDA margin(1) | | | 19.4 | % | | 16.3 | % | | 3.1 | % |
Cash dividends per share | | $ | 0.500 | | $ | 0.375 | | $ | 0.125 | |
| | April 30, | | January 31, | | | |
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As of: | | 2026 | | 2026 | | Change |
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Cash, cash equivalents and investments | | $ | 973,555 | | $ | 894,981 | | $ | 78,574 | |
Net liquidity(2) | | | 421,419 | | | 421,000 | | | 419 | |
Share repurchase treasury stock, at cost | | | 134,969 | | | 114,361 | | | 20,608 | |
Project backlog | | | 2,767,000 | | | 2,929,000 | | | (162,000) | |
(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 start to fiscal 2027 with record revenue of $291 million, gross margin of 21%, diluted earnings per share of $3.24, and adjusted EBITDA of $56.4 million. Our first quarter results reflect exceptional execution across our business, with all three of our operating segments achieving significant revenue growth as compared to the first quarter of fiscal 2026.
“Our project pipeline remains robust, with heightened demand for our capabilities as the electrification of everything, the onshoring of domestic manufacturing, and the proliferation of data centers continue to create an urgent need for additional energy infrastructure. Gas-fired plants remain the ideal solution for delivering the reliable, uninterrupted power needed, and only a limited number of firms are able to successfully execute these complex projects. The robust demand environment, coupled with our proven track record, allows us a disciplined approach in choosing the right projects, in the right locations, with the right partners.
“Our industrial segment is also seeing increased demand, highlighted by a data center contract we were awarded in November 2025 for the fabrication of pressure vessels. In support of this project and to better position us to address new opportunities, we have begun construction on a new fabrication facility in North Carolina, which we expect to complete during the third quarter of fiscal 2027.
“Argan remains very well positioned with the skill set, financial flexibility, industry relationships and longstanding customer base to capitalize on the current demand environment as we strengthen our leadership role as a partner of choice for the buildout of energy and industrial infrastructure.”
First Quarter Results
Consolidated revenues for the quarter ended April 30, 2026, were $291.0 million, an increase of $97.3 million, or 50.2%, from consolidated revenues of $193.7 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 recently awarded contracts.
For the quarter ended April 30, 2026, Argan's consolidated gross profit was $61.1 million, or 21.0% of consolidated revenues, compared to $36.9 million, or 19.0% of consolidated revenues, for the quarter ended April 30, 2025. The increase primarily reflects improved gross profit margins in the Power segment, driven by a shift in project and contract mix, strong project execution, and the achievement of substantial completion ahead of schedule on the final Midwest Solar and Battery Project.
Selling, general and administrative expenses were $15.7 million and $12.5 million for the three months ended April 30, 2026 and 2025, respectively, and represented 5.4% and 6.5% of corresponding consolidated revenues, respectively.
Other income, net, for the three months ended April 30, 2026 was $8.4 million, which primarily reflected investment income earned during the period.
For the quarter ended April 30, 2026, Argan achieved net income of $46.1 million, or $3.24 per diluted share, compared to $22.6 million, or $1.60 per diluted share, for last year’s first quarter. EBITDA for the quarter ended April 30, 2026 increased to $54.4 million compared to $30.3 million for the same quarter of last year. Adjusted EBITDA for the quarter ended April 30, 2026 increased to $56.4 million compared to $31.5 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 $973.6 million and $895.0 million as of April 30, 2026 and January 31, 2026, respectively. Balance sheet net liquidity was $421.4 million at April 30, 2026 and $421.0 million at January 31, 2026; furthermore, the Company had no debt.
As of April 30, 2026, consolidated project backlog was approximately $2.8 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, June 4, 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: 208616.
The call and the accompanying slide deck will also be webcast at:
https://www.webcaster5.com/Webcast/Page/2961/54078
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 June 18, 2026, and can be accessed by dialing 877-481-4010 (domestic) or 919-882-2331 (international). The replay access code is 54078. A replay of the webcast can be accessed until June 4, 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.
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Company Contact: |
David Watson |
301.315.0027 Investor Relations Contacts: John Nesbett/Jennifer Belodeau IMS Investor Relations 203.972.9200 |
argan@imsinvestorrelations.com |
Argan, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(In thousands, except per share data)
| | Three Months Ended | ||||
| | April 30, | ||||
| | 2026 | | 2025 | ||
| | (Unaudited) | ||||
REVENUES | | $ | 290,954 | | $ | 193,660 |
Cost of revenues | |
| 229,840 | |
| 156,797 |
GROSS PROFIT | |
| 61,114 | |
| 36,863 |
Selling, general and administrative expenses | |
| 15,719 | |
| 12,521 |
INCOME FROM OPERATIONS | |
| 45,395 | |
| 24,342 |
Other income, net | |
| 8,374 | |
| 5,444 |
INCOME BEFORE INCOME TAXES | |
| 53,769 | |
| 29,786 |
Provision for income taxes | |
| 7,706 | |
| 7,236 |
NET INCOME | | | 46,063 | | | 22,550 |
| | | | | | |
OTHER COMPREHENSIVE INCOME, NET OF TAXES | | | | | | |
Foreign currency translation adjustments | |
| (541) | | | 3,621 |
Net unrealized (losses) gains on available-for-sale securities | | | (2,659) | | | 2,680 |
COMPREHENSIVE INCOME | | $ | 42,863 | | $ | 28,851 |
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EARNINGS PER SHARE | |
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Basic | | $ | 3.30 | | $ | 1.65 |
Diluted | | $ | 3.24 | | $ | 1.60 |
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WEIGHTED AVERAGE SHARES OUTSTANDING | |
| | |
| |
Basic | |
| 13,959 | |
| 13,628 |
Diluted | |
| 14,197 | |
| 14,112 |
| | | | | | |
CASH DIVIDENDS PER SHARE | | $ | 0.500 | | $ | 0.375 |
Argan, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Dollars in thousands, except per share data)
| | April 30, | | January 31, | ||
| | 2026 | | 2026 | ||
| | (Unaudited) | | | | |
ASSETS |
| | |
| | |
CURRENT ASSETS |
| | |
| | |
Cash and cash equivalents | | $ | 355,847 | | $ | 339,481 |
Investments | |
| 617,708 | | | 555,500 |
Accounts receivable, net | |
| 130,808 | |
| 133,677 |
Contract assets | |
| 36,917 | |
| 43,397 |
Other current assets | |
| 74,828 | |
| 60,202 |
TOTAL CURRENT ASSETS | |
| 1,216,108 | |
| 1,132,257 |
Property, plant and equipment, net | |
| 18,271 | |
| 16,596 |
Goodwill | |
| 28,033 | |
| 28,033 |
Intangible assets, net | |
| 1,375 | | | 1,450 |
Deferred taxes, net | | | — | | | — |
Right-of-use and other assets | |
| 22,651 | | | 8,018 |
TOTAL ASSETS | | $ | 1,286,438 | | $ | 1,186,354 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| | |
| |
CURRENT LIABILITIES | |
| | |
| |
Accounts payable | | $ | 123,850 | | $ | 107,540 |
Accrued expenses | |
| 105,065 | |
| 89,748 |
Contract liabilities | |
| 565,774 | |
| 513,969 |
TOTAL CURRENT LIABILITIES | |
| 794,689 | |
| 711,257 |
Deferred taxes, net | |
| 4,907 | |
| 6,555 |
Noncurrent liabilities | |
| 13,331 | | | 6,280 |
TOTAL LIABILITIES | |
| 812,927 | |
| 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; 14,020,427 and 13,950,712 shares outstanding at April 30, 2026 and January 31, 2026, respectively | |
| 2,374 | |
| 2,374 |
Additional paid-in capital | |
| 163,233 | |
| 167,234 |
Retained earnings | |
| 445,255 | |
| 406,197 |
Treasury stock, at cost – 1,807,862 and 1,877,577 shares at April 30, 2026 and January 31, 2026, respectively | | | (134,969) | | | (114,361) |
Accumulated other comprehensive (loss) income | |
| (2,382) | | | 818 |
TOTAL STOCKHOLDERS’ EQUITY | |
| 473,511 | |
| 462,262 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 1,286,438 | | $ | 1,186,354 |
Argan, Inc. and Subsidiaries
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations
(Dollars in thousands)
(Unaudited)
| | Three Months Ended | | ||||
| | April 30, | | ||||
| | 2026 | | 2025 | | ||
Revenues | | $ | 290,954 | | $ | 193,660 | |
| | | | | | | |
Net income, as reported | | $ | 46,063 | | $ | 22,550 | |
Provision for income taxes | |
| 7,706 | |
| 7,236 | |
Depreciation | |
| 559 | |
| 415 | |
Amortization of intangible assets | |
| 75 | |
| 98 | |
EBITDA | | | 54,403 | | | 30,299 | |
Stock-based compensation expense | | | 2,036 | | | 1,188 | |
Adjusted EBITDA | | $ | 56,439 | | $ | 31,487 | |
Adjusted EBITDA margin | | | 19.4 | % | | 16.3 | % |