Argan, Inc. Reports Fourth Quarter and Fiscal Year 2026 Results

Argan, Inc. Reports Fourth Quarter and Fiscal Year 2026 Results ARLINGTON, Va.--( BUSINESS WIRE)--Argan, Inc. (NYSE: AGX) (“Argan” or the “Company”) today announces financial results for its fourth quarter and fiscal year ended January 31, 2026. The Company will host an investor conference call today, March 26, 2026, at 5:00 p.m. ET.

Consolidated Financial Highlights

($ in thousands, except per share data)

January 31,

For the Quarter Ended:

2026

2025

Change

Revenues

262,050

232,474

29,576

Gross profit

65,599

47,613

17,986

Gross margin %

25.0

20.5

4.5

Net income

49,212

31,369

17,843

Diluted earnings per share

3.47

2.22

1.25

EBITDA

55,976

39,259

16,717

EBITDA as a % of revenues

21.4

16.9

4.5

Cash dividends per share

0.500

0.375

0.125

January 31,

For the Fiscal Year Ended:

2026

2025

Change

Revenues

944,606

874,179

70,427

Gross profit

193,678

140,989

52,689

Gross margin %

20.5

16.1

4.4

Net income

137,774

85,459

52,315

Diluted earnings per share

9.74

6.15

3.59

EBITDA

162,797

113,500

49,297

EBITDA as a % of revenues

17.2

13.0

4.2

Cash dividends per share

1.750

1.350

0.400

January 31,

As of:

2026

2025

Change

Cash, cash equivalents and investments

894,981

525,137

369,844

Net liquidity (1)

421,000

301,443

119,557

Share repurchase treasury stock, at cost

114,361

105,643

8,718

Project backlog

2,929,000

1,361,000

1,568,000

(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, “Our record fourth quarter performance capped a year of strong execution throughout fiscal 2026, driving record top and bottom-line performance for the full year. During the year, we added $2.5 billion in new contract value, increasing our consolidated project backlog to more than $2.9 billion at year-end, reflecting substantial growth across the entire Argan platform. These are exciting times for our company as demand for our services remains exceptionally strong.

“With our longstanding customer base, proven track record of executional excellence, and industry-leading experience building large, complex power generating facilities, Argan is uniquely positioned to capitalize on the strong demand for reliable, high-performing energy infrastructure. The rapid growth of AI and data centers, the electrification of everything, the replacement of aging power facilities, and a prolonged period of underinvestment in power infrastructure are placing increasing pressure on our power grids. We are seeing a robust pipeline of opportunities to build new gas-fired power plants capable of delivering reliable, high-quality power on a 24/7 basis.

“As Argan enters its 20th year of building power plants, we remain as disciplined today as we were in our first year in the way we pursue opportunities and deliver successful project outcomes for our customers, employees, and shareholders. We are energized by our ability to continue driving meaningful revenue growth and enhanced profitability in the years ahead.”

Fourth Quarter Results

Consolidated revenues for the quarter ended January 31, 2026, were $262.1 million, an increase of $29.6 million, or 12.7%, from consolidated revenues of $232.5 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, revenues increased as recently awarded contracts progressed through the early stages of construction, generating revenues that were not present in the prior-year period.

For the quarter ended January 31, 2026, Argan’s consolidated gross profit was $65.6 million, or 25.0% of consolidated revenues. Consolidated gross profit for the quarter ended January 31, 2025 was $47.6 million, or 20.5% of consolidated revenues. The increase from the comparable prior-year quarter is primarily due to improved gross profit margins for the Power segment, reflecting strong project execution, including the early achievement of substantial completion at the Trumbull Energy Center.

Selling, general and administrative expenses were $17.9 million and $14.9 million for the three months ended January 31, 2026 and 2025, respectively, and represented 6.8% and 6.4% of corresponding consolidated revenues, respectively.

Other income, net, for the three months ended January 31, 2026 was $7.7 million, which primarily reflected investment income earned during the period.

For the quarter ended January 31, 2026, Argan achieved net income of $49.2 million, or $3.47 per diluted share, compared to $31.4 million, or $2.22 per diluted share, for last year’s fourth quarter. EBITDA for the quarter ended January 31, 2026 increased to $56.0 million compared to $39.3 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 $895.0 million and $525.1 million as of January 31, 2026 and 2025, respectively. Balance sheet net liquidity was $421.0 million at January 31, 2026 and $301.4 million at January 31, 2025; furthermore, the Company had no debt.

Fiscal Year 2026 Results

Consolidated revenues for Fiscal 2026 were $944.6 million, an increase of $70.4 million, or 8.1%, from consolidated revenues of $874.2 million reported for Fiscal 2025. Consolidated gross profit for Fiscal 2026 increased to approximately $193.7 million, or 20.5% of consolidated revenues, compared to consolidated gross profit of $141.0 million, or 16.1% of consolidated revenues, reported for Fiscal 2025.

For Fiscal 2026, Argan achieved net income of $137.8 million, or $9.74 per diluted share, versus net income of $85.5 million, or $6.15 per diluted share, for Fiscal 2025. EBITDA for Fiscal 2026 was $162.8 million, an increase of $49.3 million from EBITDA of $113.5 million for Fiscal 2025.

As of January 31, 2026, consolidated project backlog was approximately $2.9 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, March 26, 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: 815489.

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

https://www.webcaster5.com/Webcast/Page/2961/53563

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 April 9, 2026, and can be accessed by dialing 877-481-4010 (domestic) or 919-882-2331 (international). The replay access code is 53563. A replay of the webcast can be accessed until March 26, 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”), 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 reconciliations 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

CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except per share data)

Three Months Ended

Fiscal Year Ended

January 31,

2026

2025

2026

2025

(Unaudited)

REVENUES

262,050

232,474

944,606

874,179

Cost of revenues

196,451

184,861

750,928

733,190

GROSS PROFIT

65,599

47,613

193,678

140,989

Selling, general and administrative expenses

17,928

14,946

58,977

52,794

INCOME FROM OPERATIONS

47,671

32,667

134,701

88,195

Other income, net

7,722

5,965

25,808

23,009

INCOME BEFORE INCOME TAXES

55,393

38,632

160,509

111,204

Provision for income taxes

6,181

7,263

22,735

25,745

NET INCOME

49,212

31,369

137,774

85,459

OTHER COMPREHENSIVE INCOME, NET OF TAXES

Foreign currency translation adjustments

1,204

(389

)

4,739

(2,322

)

Net unrealized (losses) gains on available-for-sale securities

(277

)

(450

)

2,617

(619

)

COMPREHENSIVE INCOME

50,139

30,530

145,130

82,518

EARNINGS PER SHARE

Basic

3.54

2.31

10.00

6.35

Diluted

3.47

2.22

9.74

6.15

WEIGHTED AVERAGE SHARES OUTSTANDING

Basic

13,895

13,598

13,772

13,448

Diluted

14,182

14,135

14,147

13,906

CASH DIVIDENDS PER SHARE

0.500

0.375

1.750

1.350

ARGAN, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share data)

January 31,

2026

2025

ASSETS

CURRENT ASSETS

Cash and cash equivalents

339,481

145,263

Investments

555,500

379,874

Accounts receivable, net

133,677

175,808

Contract assets

43,397

28,430

Other current assets

60,202

51,925

TOTAL CURRENT ASSETS

1,132,257

781,300

Property, plant and equipment, net

16,596

14,463

Goodwill

28,033

Intangible assets, net

1,450

1,826

Deferred taxes, net

—

552

Right-of-use and other assets

8,018

10,053

TOTAL ASSETS

1,186,354

836,227

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES

Accounts payable

107,540

97,297

Accrued expenses

89,748

83,319

Contract liabilities

513,969

299,241

TOTAL CURRENT LIABILITIES

711,257

479,857

Deferred taxes, net

6,555

—

Noncurrent liabilities

6,280

4,513

TOTAL LIABILITIES

724,092

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; 13,950,712 and 13,634,214 shares outstanding at January 31, 2026 and 2025, respectively

2,374

Additional paid-in capital

167,234

168,966

Retained earnings

406,197

292,698

Treasury stock, at cost – 1,877,577 and 2,194,075 shares at January 31, 2026 and 2025, respectively

(114,361

)

(105,643

)

Accumulated other comprehensive income (loss)

818

(6,538

)

TOTAL STOCKHOLDERS’ EQUITY

462,262

351,857

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

1,186,354

836,227

ARGAN, INC. AND SUBSIDIARIES

RECONCILIATIONS TO EBITDA

(In thousands)

(Unaudited)

Three Months Ended

January 31,

2026

2025

Net income, as reported

49,212

31,369

Provision for income taxes

6,181

7,263

Depreciation

501

529

Amortization of intangible assets

EBITDA

55,976

39,259

Fiscal Year Ended

January 31,

2026

2025

Net income, as reported

137,774

85,459

Provision for income taxes

22,735

25,745

Depreciation

1,912

1,905

Amortization of intangible assets

376

391

EBITDA

162,797

113,500