Argan Stock Earnings Reports

Argan delivered a strong Q2 FY2026: consolidated revenue of $237.7M (up 5% YoY, +23% sequential), consolidated gross margin improved to 18.6% (vs. 13.7% prior year), record net income of $35.3M ($2.50 diluted EPS) and EBITDA of $36.2M (15.2% margin). Backlog reached a record ~$2.0B (growth +5% vs. 04/30/2025) with each segment reporting record backlog; power industry services (83% of revenue) drove much of the performance and margin improvement. Key project milestones: Trumbull 950 MW plant achieved first fire on both units (completion expected in H1 next year); new awards include a 170 MW thermal facility in Ireland, a 1.2 GW combined-cycle plant in Texas, and several industrial and water/recycling projects. Balance sheet is strong: $572M cash & investments, net liquidity $344M, no debt, and $393M shareholders’ equity. Capital return and allocation: quarterly dividend (37.5¢), $25M returned in H1, ~ $109.6M repurchased since Nov 2021 and board increased buyback authorization to $150M; company remains focused on disciplined capital allocation and will consider M&A selectively. Management emphasizes strong market fundamentals (rising electricity demand, aging gas fleet, AI/data center-driven demand), execution discipline, and capacity to handle an elevated project load (management cites capacity for ~10–12 power jobs). Risks remain the usual industry lumpy/project execution and timing dynamics; management remains conservative and does not provide formal revenue/EPS guidance.