Argan, Inc. Reports Fourth Quarter and Fiscal Year 2025 Results
Consolidated Financial Highlights
($ in thousands, except per share data)
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January 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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$ |
232,474 |
|
$ |
164,554 |
|
$ |
67,920 |
|
Gross profit |
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47,613 |
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23,633 |
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23,980 |
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Gross margin % |
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20.5 |
% |
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14.4 |
% |
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6.1 |
% |
Net income |
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$ |
31,369 |
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$ |
12,018 |
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$ |
19,351 |
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Diluted income per share |
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2.22 |
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0.89 |
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1.33 |
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EBITDA |
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39,259 |
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17,564 |
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21,695 |
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Cash dividends per share |
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0.375 |
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0.300 |
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0.075 |
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January 31, |
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For the Fiscal Year Ended: |
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2025 |
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2024 |
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Change |
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Revenues |
|
$ |
874,179 |
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$ |
573,333 |
|
$ |
300,846 |
|
Gross profit |
|
|
140,989 |
|
|
80,834 |
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|
60,155 |
|
Gross margin % |
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16.1 |
% |
|
14.1 |
% |
|
2.0 |
% |
Net income |
|
$ |
85,459 |
|
$ |
32,358 |
|
$ |
53,101 |
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Diluted income per share |
|
|
6.15 |
|
|
2.39 |
|
|
3.76 |
|
EBITDA |
|
|
113,500 |
|
|
51,338 |
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|
62,162 |
|
Cash dividends per share |
|
|
1.350 |
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1.100 |
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|
0.250 |
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January 31, |
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As of: |
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2025 |
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2024 |
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Change |
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Cash, cash equivalents and investments |
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$ |
525,137 |
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$ |
412,405 |
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$ |
112,732 |
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Net liquidity (1) |
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301,443 |
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244,919 |
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56,524 |
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Share repurchase treasury stock, at cost |
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105,643 |
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97,528 |
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8,115 |
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Project backlog |
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1,361,000 |
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757,000 |
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604,000 |
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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, “Our fourth quarter performance continued the momentum we saw throughout fiscal 2025, providing a strong close to a year characterized by exceptional execution across all of our business segments. Power industry services reported particularly strong performance during the quarter, with revenue growth of approximately
“Backlog grew to
“As an energy-agnostic company with a proven track record of delivering high-complexity projects on time and within budget, Argan has earned a solid reputation across the markets we serve. The ongoing ‘electrification of everything’ is creating extraordinary pressure on our power grids, while aging power infrastructure and nearly a decade of underinvestment in natural gas power facilities is driving unprecedented need for reliable, 24/7 sources of high quality energy. We believe our successful track record as a partner of choice in the construction of both natural gas and renewable power generating assets positions us very competitively in the current energy environment.
“We are energized by the strong pipeline of projects ahead as our industry prepares to establish the dependable energy resources necessary to power the reshoring of complex manufacturing operations, the growing amount of data centers and the increased use of EV charging. It’s important to note that the current buildout of power facilities is in its early stages, and that the combined cycle projects we take on typically have a duration of three to four years. With the volume of projects we’re seeing coming to market, we believe our runway for continued growth is substantial. Argan remains focused on leveraging our capabilities, financial flexibility and longstanding customer and industry relationships to drive continued growth as we pursue new opportunities to build the energy infrastructure needed today, tomorrow and beyond.”
Fourth Quarter Results
Consolidated revenues for the quarter ended January 31, 2025 were
For the quarter ended January 31, 2025, Argan’s consolidated gross profit was
Selling, general and administrative expenses increased by
Other income, net, for the three months ended January 31, 2025 was
For the quarter ended January 31, 2025, Argan achieved net income of
Argan maintained a substantial total balance of cash, cash equivalents and investments during the quarter. The total balances were
Fiscal Year 2025 Results
Power Industry Services
Revenues from the power industry services business increased by
Industrial Construction Services
Revenues from industrial construction services increased by
Consolidated Operating Results
Consolidated revenues for Fiscal 2025 were
For Fiscal 2025, consolidated gross profit increased to approximately
Selling, general and administrative expenses increased by
Other income, net, for Fiscal 2025 was
The Company recorded income tax expense of
For Fiscal 2025, Argan achieved net income of
Conference Call and Webcast
Argan will host a conference call and webcast for investors today, March 27, 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: 966525.
The call and the accompanying slide deck will also be webcast at:
https://www.webcaster4.com/Webcast/Page/2961/52121
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 10, 2025, and can be accessed by dialing 877-481-4010 (domestic) or 919-882-2331 (international). The replay access code is 52121. A replay of the webcast can be accessed until March 27, 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, the Company’s ability to successfully complete the projects that it obtains, and the Company’s effectiveness in mitigating future losses related to the Kilroot loss contract. 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) |
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Three Months Ended |
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Fiscal Year Ended |
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January 31, |
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January 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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(Unaudited) |
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REVENUES |
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$ |
232,474 |
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$ |
164,554 |
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$ |
874,179 |
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$ |
573,333 |
Cost of revenues |
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184,861 |
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140,921 |
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733,190 |
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492,499 |
GROSS PROFIT |
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47,613 |
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23,633 |
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140,989 |
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80,834 |
Selling, general and administrative expenses |
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14,946 |
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11,909 |
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52,794 |
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44,376 |
INCOME FROM OPERATIONS |
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32,667 |
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11,724 |
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88,195 |
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36,458 |
Other income, net |
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5,965 |
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5,253 |
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23,009 |
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12,475 |
INCOME BEFORE INCOME TAXES |
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38,632 |
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16,977 |
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111,204 |
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48,933 |
Income tax expense |
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7,263 |
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4,959 |
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25,745 |
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16,575 |
NET INCOME |
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31,369 |
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12,018 |
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85,459 |
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32,358 |
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OTHER COMPREHENSIVE INCOME, NET OF TAXES |
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Foreign currency translation adjustments |
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(389) |
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(293) |
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(2,322) |
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(920) |
Net unrealized (losses) gains on available-for-sale securities |
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(450) |
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1,346 |
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(619) |
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|
199 |
COMPREHENSIVE INCOME |
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$ |
30,530 |
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$ |
13,071 |
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$ |
82,518 |
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$ |
31,637 |
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NET INCOME PER SHARE |
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Basic |
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$ |
2.31 |
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$ |
0.90 |
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$ |
6.35 |
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$ |
2.42 |
Diluted |
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$ |
2.22 |
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$ |
0.89 |
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$ |
6.15 |
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$ |
2.39 |
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WEIGHTED AVERAGE SHARES OUTSTANDING |
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Basic |
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13,598 |
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13,319 |
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13,448 |
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13,365 |
Diluted |
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14,135 |
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13,548 |
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13,906 |
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13,548 |
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CASH DIVIDENDS PER SHARE |
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$ |
0.375 |
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$ |
0.300 |
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$ |
1.350 |
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$ |
1.100 |
ARGAN, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share data) |
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January 31, |
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2025 |
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2024 |
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ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents |
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$ |
145,263 |
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$ |
197,032 |
Investments |
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|
379,874 |
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|
215,373 |
Accounts receivable, net |
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|
175,808 |
|
|
47,326 |
Contract assets |
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28,430 |
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48,189 |
Other current assets |
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51,925 |
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39,259 |
TOTAL CURRENT ASSETS |
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781,300 |
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547,179 |
Property, plant and equipment, net |
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14,463 |
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11,021 |
Goodwill |
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28,033 |
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28,033 |
Intangible assets, net |
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1,826 |
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|
2,217 |
Deferred taxes, net |
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|
552 |
|
|
2,259 |
Right-of-use and other assets |
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|
10,053 |
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|
7,520 |
TOTAL ASSETS |
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$ |
836,227 |
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$ |
598,229 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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CURRENT LIABILITIES |
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Accounts payable |
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$ |
97,297 |
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$ |
39,485 |
Accrued expenses |
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83,319 |
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81,721 |
Contract liabilities |
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|
299,241 |
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|
181,054 |
TOTAL CURRENT LIABILITIES |
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|
479,857 |
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|
302,260 |
Noncurrent liabilities |
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|
4,513 |
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|
5,030 |
TOTAL LIABILITIES |
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|
484,370 |
|
|
307,290 |
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STOCKHOLDERS’ EQUITY |
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Preferred stock, par value |
|
|
— |
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— |
Common stock, par value |
|
|
2,374 |
|
|
2,374 |
Additional paid-in capital |
|
|
168,966 |
|
|
164,183 |
Retained earnings |
|
|
292,698 |
|
|
225,507 |
Treasury stock, at cost – 2,194,075 and 2,585,769 shares at January 31, 2025 and 2024, respectively |
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(105,643) |
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(97,528) |
Accumulated other comprehensive loss |
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(6,538) |
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|
(3,597) |
TOTAL STOCKHOLDERS’ EQUITY |
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|
351,857 |
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|
290,939 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
836,227 |
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$ |
598,229 |
ARGAN, INC. AND SUBSIDIARIES RECONCILIATION TO EBITDA (In thousands) (Unaudited) |
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Three Months Ended |
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January 31, |
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2025 |
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2024 |
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Net income, as reported |
|
$ |
31,369 |
|
$ |
12,018 |
Income tax expense |
|
|
7,263 |
|
|
4,959 |
Depreciation |
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|
529 |
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|
489 |
Amortization of intangible assets |
|
|
98 |
|
|
98 |
EBITDA |
|
$ |
39,259 |
|
$ |
17,564 |
|
|
Fiscal Year Ended |
||||
|
|
January 31, |
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|
|
2025 |
|
2024 |
||
Net income, as reported |
|
$ |
85,459 |
|
$ |
32,358 |
Income tax expense |
|
|
25,745 |
|
|
16,575 |
Depreciation |
|
|
1,905 |
|
|
2,013 |
Amortization of intangible assets |
|
|
391 |
|
|
392 |
EBITDA |
|
$ |
113,500 |
|
$ |
51,338 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250327166289/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.