Argan, Inc. Reports First Quarter Fiscal 2027 Results
ARLINGTON, Va.--( BUSINESS WIRE)--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,
For the Quarter Ended:
2026
2025
Change
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,
As of:
2026
2026
Change
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.
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
EARNINGS PER SHARE
Basic
$
3.30
$
1.65
Diluted
$
3.24
$
1.60
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
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
%