Record 2026 results and $2.9B backlog at Argan (NYSE: AGX)
Rhea-AI Filing Summary
Argan, Inc. reported strong fourth quarter and full-year results for the period ended January 31, 2026. Q4 revenues were $262.1 million with net income of $49.2 million, or $3.47 per diluted share, and gross margin improved to 25.0%.
For fiscal 2026, revenues reached $944.6 million and net income was $137.8 million, or $9.74 per diluted share, with gross margin rising to 20.5%. Year-end cash, cash equivalents and investments totaled $894.98 million and net liquidity was $421.0 million, with no debt.
Project backlog grew sharply to approximately $2.9 billion as of January 31, 2026, supported by $2.5 billion in new contract value added during the year. The company also increased cash dividends per share to $1.75 for fiscal 2026.
Positive
- Record profitability and margins: Fiscal 2026 net income rose to $137.8 million with gross margin improving to 20.5% and EBITDA reaching $162.8 million, indicating stronger execution and operating leverage.
- Backlog and liquidity surge: Project backlog increased to approximately $2.9 billion and cash, cash equivalents and investments grew to $894.98 million with net liquidity of $421.0 million and no debt, enhancing financial strength and future revenue visibility.
Negative
- None.
Insights
Argan posts record growth with stronger margins, cash and backlog.
Argan delivered notable top- and bottom-line expansion in fiscal 2026. Revenues rose to $944.6 million while net income increased to $137.8 million, supported by gross margin improvement from 16.1% to 20.5%. Q4 performance was especially strong with higher revenues across all segments.
The business also showed significant operating leverage: EBITDA climbed to $162.8 million and EBITDA margins improved from 13.0% to 17.2%. Management attributes much of the margin strength to strong execution in the Power segment, including early substantial completion at the Trumbull Energy Center.
Financial flexibility improved meaningfully. Cash, cash equivalents and investments reached $894.98 million with net liquidity at $421.0 million and no debt. Meanwhile, project backlog grew to about $2.9 billion, more than double the prior year’s $1.4 billion, indicating substantial future revenue visibility tied to large power and infrastructure projects.
8-K Event Classification
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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Item 2.02. Results of Operations and Financial Condition.
On March 26, 2026, Argan, Inc. (“Argan”) issued a press release announcing its financial results for its fourth quarter and fiscal year ended January 31, 2026. A copy of Argan’s press release is attached to this report as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits
Exhibit No. | | Description |
99.1 | | Press Release issued by Argan on March 26, 2026 |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| ARGAN, INC. | ||||
Date: March 26, 2026 |
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| By: |
| /s/ Joshua S. Baugher | |
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| Joshua S. Baugher | |||
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| Senior Vice President, Chief Financial Officer and Treasurer | |||
Exhibit 99.1
Argan, Inc. Reports Fourth Quarter and Fiscal Year 2026 Results
March 26, 2026 – ARLINGTON, VA – Argan, Inc. (NYSE: AGX) (“Argan” or the “Company”) today announces financial results for its fourth quarter and fiscal year ended January 31, 2026. The Company will host an investor conference call today, March 26, 2026, at 5:00 p.m. ET.
Consolidated Financial Highlights
($ in thousands, except per share data)
| | January 31, | | | |
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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 |
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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.
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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
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
| | Three Months Ended | | Fiscal Year Ended | ||||||||
| | January 31, | | 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 | |
| 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 | |
| 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 | |
| 82 | |
| 98 |
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 |