AGX

Argan, Inc. AGX delivered a sharp beat for the second quarter of fiscal 2027 (ended July 31, 2026), with earnings and revenues topping the Zacks Consensus Estimate and growing year over year.The quarterly results reflected higher activity across all three business segments, led by construction ramp-ups in Power and stronger field services and vessel fabrication in Industrial. Project backlog stood at $2.5 billion as of July 31, 2026.AGX stock gained 9.9% during yesterday’s after-hours trading session, post the announcement of the financial results. The company’s quarterly earnings of $3.76 per share rose 50.4% year over year and topped the Zacks Consensus Estimate of $2.68 by 40.3%.Revenues increased 61.5% year over year to $384 million and surpassed the consensus mark of $298 million by 28.9%. Argan, Inc. price-consensus-eps-surprise-chart | Argan, Inc. Quote Consolidated gross profit rose 67.7% to $74.2 million, while gross margin expanded to 19.3% from 18.6%. Selling, general and administrative expenses increased 22.5% to $17.4 million but declined to 4.5% of revenues from 6% in the year-ago period.Adjusted EBITDA climbed to $70 million from $38.49 million year over year, with margin improving to 18.2% from 16.2%. The Power segment generated $301.2 million in quarterly revenues, up 52.9% year over year and representing 78.4% of consolidated revenues. Growth reflected increased construction activity on the 1.4 GW Thermal Project, 700 MW Combined-Cycle Project, 1.2 GW Power Station and 860 MW Thermal Project.Power gross margin improved to 22.4% from 19.6% a year earlier. Management attributed the consolidated gross margin improvement primarily to changing project and contract mix and strong execution in the Power segment. Industrial revenues surged 111.2% to $76.2 million as field-services construction activity and vessel fabrication increased. The segment accounted for 19.8% of consolidated revenues, up from 15.2% in the prior-year quarter.Industrial gross margin, however, fell to 7.3% from 12.5%. Argan is constructing an additional fabrication facility in Farmville, NC, to support a contract for approximately 2,000 horizontal pressure vessels for thermal energy storage and chilled-water cooling systems. Completion is expected in the third quarter of fiscal 2027. Teledata revenues increased 39.5% to $6.6 million. Its gross margin declined to 16.6% from 24.7%, while the segment posted a pretax loss of $0.2 million for the quarter.On July 31, 2026, Argan acquired ValCor Communications for total consideration of approximately $9.4 million. Since the acquisition closed on the final day of the quarter, ValCor contributed no revenues or earnings to the reported period. The deal extends Teledata's reach into New England and adds defense and aerospace customers. Cash, cash equivalents and investments totaled $1.03 billion as of July 31, 2026, up from $895 million as of Jan. 31, 2026. Net liquidity increased to $440.4 million from $421 million, and AGX had no debt. Operating cash flow for the first six months of fiscal 2027 was $210.4 million.Argan used $14 million for dividends, $9.6 million for share repurchases and $8 million, net of cash acquired, for the ValCor transaction during the first half. The quarterly dividend was 50 cents per share, equivalent to an annual rate of $2.00 per share. The presentation characterized the backlog as fully committed by customers and actively being worked on. It showed 91% supporting the electric economy, comprising 80% natural gas and 11% renewable projects, while Industrial represented 8%. The backlog was $411 million below its Jan. 31 level.The company estimates that about 48% of remaining unsatisfied performance obligations will be recognized as revenues over the next 12 months, with substantially all the remainder expected within the following 12 to 24 months. Management cited data centers, electric vehicles and reshoring of manufacturing as demand drivers, while equipment constraints, interconnection delays, specialized labor availability and tariffs could affect project costs and timing. Argan currently carries a Zacks Rank #3 (Hold).Here are some better-ranked stocks from the Construction sector to consider.Comfort Systems USA, Inc. FIX currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Comfort Systems delivered a trailing four-quarter earnings surprise of 34.6%, on average. The Zacks Consensus Estimate for Comfort Systems’ 2026 sales and EPS indicates growth of 38.3% and 60.7%, respectively, from a year ago.Quanta Services, Inc. PWR presently sports a Zacks Rank of 1. Quanta has a trailing four-quarter earnings surprise of 17%, on average.The consensus estimate for Quanta’s 2026 sales and EPS indicates growth of 38.4% and 52.3%, respectively, from the prior-year levels.Tutor Perini Corporation TPC currently sports a Zacks Rank of 1. Tutor Perini delivered a trailing four-quarter earnings surprise of 17.8%, on average.The Zacks Consensus Estimate for Tutor Perini’s 2026 sales and EPS implies an increase of 14% and 27.7%, respectively, from a year ago. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Argan, Inc. (AGX) : Free Stock Analysis Report Quanta Services, Inc. (PWR) : Free Stock Analysis Report Comfort Systems USA, Inc. (FIX) : Free Stock Analysis Report Tutor Perini Corporation (TPC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: Record consolidated revenue of $384 million for Q2 fiscal 2027, up 62% from $237.7 million in the prior-year quarter. Gross Margin: Consolidated gross margin of 19.3%, up from 18.6% in the same quarter last year. Net Income: Record net income of $53.3 million, or $3.76 per diluted share, compared to $35.3 million ($2.50 per diluted share) in Q2 fiscal 2026. Adjusted EBITDA: Record adjusted EBITDA of $70 million, with an adjusted EBITDA margin of 18.2%, versus $38.5 million (16.2% margin) in the prior-year quarter. Segment Revenue - Power: Revenue grew 53% to $301 million, representing 78% of total revenue, with pretax book income of $66 million. Segment Revenue - Industrial: Revenue increased 111% to $76 million, or 20% of consolidated revenue, with pretax book income of approximately $4 million. Segment Revenue - Tele data: Revenue grew 40% to $7 million, contributing 2% of consolidated revenue. Segment Gross Margins: Power segment gross margin of 22.4%, Industrial segment gross margin of 7.3%, and Tele data segment gross margin of 16.6% for Q2 fiscal 2027. SG&A Expenses: SG&A expenses were $17.4 million, down to 4.5% of revenue from 6% in the prior-year quarter. Backlog: Consolidated backlog of fully committed projects was $2.5 billion at July 31, 2026, down from $2.9 billion at the start of fiscal 2027. Cash and Investments: Approximately $1 billion in cash and investments, with net liquidity of $440 million and no debt at July 31, 2026. Dividend: Quarterly dividend of $0.50 per share, or $2.00 per share on an annual basis. Warning! GuruFocus has detected 4 Warning Signs with PHR. Is AGX fairly valued? Test your thesis with our free DCF calculator. Release Date: September 02, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Argan Inc (NYSE:AGX) reported record consolidated revenue of $384 million for Q2 fiscal 2027, a 62% increase year-over-year, driven by strong growth across all segments. The company achieved record net income of $53.3 million ($3.76 per diluted share) and record adjusted EBITDA of $70 million, reflecting strong operational execution. Argan Inc (NYSE:AGX) maintains a robust balance sheet with approximately $1 billion in cash and investments, no debt, and net liquidity of $440 million, providing a competitive advantage. The acquisition of Valcor Communications expands Argan Inc (NYSE:AGX)'s Tele data segment into New England, adding Fortune 500 clients and expected to double segment revenues from fiscal 2026. The company's pipeline remains exceptionally strong, with expectations to add several new projects over the next 7 to 15 months, supported by high demand for gas-fired power plants. Argan Inc (NYSE:AGX) continues to return capital to shareholders through a quarterly dividend of $0.50 per share and a $200 million share repurchase program extended through 2030. Consolidated gross margin declined to 19.3% in Q2 fiscal 2027 from 25% in Q4 fiscal 2026, reflecting earlier-stage project revenues and a shift in project mix. The Industrial segment's gross margin fell to 7.3%, below expectations, due to cost overruns on a couple of projects unrelated to data center work, impacting profitability. Backlog decreased to $2.5 billion at July 31, 2026, from $2.9 billion at the start of fiscal 2027, as no major new power projects were added during the quarter. Revenue growth may slow in Q3 fiscal 2027 due to revenue pulled forward into Q2 and anticipated decreased industrial revenues for the rest of the year. The company faces potential risks from regulatory and political pushbacks on data center development, which could impact future demand despite current strong pipeline activity. Industrial margins are expected to remain below historical norms for a quarter or two as the company works through projects with unfavorable estimates to complete. Q: Can you characterize the activity in your project pipeline and provide a sense of the projects you are looking at? A: David Watson, CEO, stated that while the company remains conservative in predicting backlog, they expect to add a handful of new projects over the next 7 to 15 months, reflecting strong demand for natural gas-fired facilities. He noted that complex combined-cycle projects will represent the majority of the backlog for the near and midterm. The company is evaluating a significant number of inbound requests, but the timing of new job awards can vary, potentially occurring next quarter or a year from now. He highlighted that despite generating $675 million in revenue during the first six months, the backlog remained above $2.5 billion, offset by over $260 million in additions from scope increases and new smaller jobs. Q: What is the revenue capacity of the new fabrication facility, and what markets are you targeting with it? A: David Watson, CEO, explained that construction on the new facility is progressing well and is expected to be complete in Q3, a significant acceleration. The facility is primarily geared toward supporting the $125 million data center project for fabricating thermal expansion and energy storage tanks. He expects follow-on opportunities with that customer and anticipates the facility will generate a meaningful uptick in revenues for the industrial group, around $10-plus million per quarter, later this year and into the next. Q: Can you provide an update on employee headcount and the company's capacity to take on new jobs? A: David Watson, CEO, stated that the company is setting new records for employee headcount every month, with a constant process of adding and training personnel. He reaffirmed the company's capacity to execute on 10 to 12 jobs simultaneously, noting that the scale of projects can cause variability. He emphasized that all business segments are expanding, with headcount meaningfully above levels from a year ago. Q: Why was the Industrial segment's gross margin lower at 7.3%, and what is a more normalized level? A: David Watson, CEO, acknowledged that while revenue was a record, the margin profile was below expectations due to a couple of projects, unrelated to data center work, where estimates to complete became less favorable than initially estimated. These projects are expected to be finished over the next six months, so industrial margins may run below historical norms for a quarter or two. He expressed confidence in the segment's long-term opportunities, especially in the data center and power markets. Q: Have recent political actions, such as the Texas governor's comments on data center projects, impacted demand or developer behavior? A: David Watson, CEO, stated that despite news of pauses and pushbacks on data centers, there has been no change in developer behavior. The urgency to build power plants remains, and developers still need to achieve milestones like power purchase agreements, permits, and financing. The company continues to work with several developers on early activities and expects to add more backlog in the future. Q: Given the strong revenue in Q2, do you still expect sequential revenue growth in the second half of the fiscal year? A: David Watson, CEO, confirmed that fiscal year 2027 revenue is expected to be significantly above fiscal year 2026. However, the strong Q2 performance may result in limited quarter-over-quarter growth in Q3, especially with anticipated decreased industrial revenues. He noted that revenue can move around based on construction phases, project starts, and completions. Q: What are your latest thoughts on pricing, specifically within the gas-fired power plant business? A: David Watson, CEO, explained that pricing depends on contract type and location, with labor costs varying significantly. The company typically engages in fixed-price contracts and considers market conditions, inflation, and labor costs. He noted that while they may not command higher prices solely due to market evolution, they are able to secure appropriate pricing, as reflected in the power segment's gross margins north of 22% over the last three quarters. Q: Was the strength in power segment margins driven by project execution milestones, or is this a more normalized baseline? A: David Watson, CEO, stated that margins vary quarter-to-quarter based on project mix and construction cycle position. The power margins of 22.4% in Q2 and 23.6% in Q1 were partly due to completing some projects early, which avoids additional costs. While overall margins outside of power were slightly below expectations, the company remains confident in its ability to execute projects and capitalize on pipeline opportunities to drive strong margins. Q: Can you discuss the opportunity set for the Valcor acquisition and the potential for further bolt-on M&A? A: David Watson, CEO, expressed excitement about the Valcor acquisition, which enhances the Tele data segment and is expected to create synergies. He anticipates that organic growth and Valcor's contributions could potentially double Tele data revenues from fiscal year 2026 and drive EBITDA growth over the next couple of quarters. He reiterated that while Argan is stringent and selective with M&A, it remains a core capital allocation pillar alongside buybacks, dividends, and organic growth investments. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Argan, Inc. AGX used its second-quarter fiscal 2027 earnings call to emphasize a strong natural gas project pipeline, expanding capacity and selectivity in new work. Management also tempered expectations for sequential revenue growth after a strong quarter. The company reported fiscal second-quarter earnings of $3.76 per share, beating the Zacks Consensus Estimate of $2.68, a 40.30% surprise. Revenues of $383.98 million also topped the $297.80 million consensus estimate. Argan, Inc. price-consensus-eps-surprise-chart | Argan, Inc. Quote Argan expects to add a handful of projects over the next seven to 15 months, with complex combined-cycle gas projects expected to dominate backlog in the near and midterm. Backlog stood at $2.5 billion at quarter-end, down from $2.9 billion at the start of fiscal 2027. CEO and President David Watson said Argan generally records projects after receiving notice to proceed. A Lake Street Capital Markets analyst asked about the pipeline. Watson said inbound demand remains significant and noted that more than $260 million of scope increases, smaller awards and intra-quarter work helped offset backlog burn. A CJS Securities analyst also asked about Texas data-center pushback, and the CEO said developer behavior had not changed. Watson said fiscal 2027 revenues are still expected to be significantly above fiscal 2026, but he qualified the earlier expectation for sequential quarterly increases. A JPMorgan analyst asked whether second-half revenues would continue growing from the fiscal second quarter. Watson said stronger-than-anticipated activity, especially in Power, pulled some revenues forward. He added that fiscal third-quarter sequential growth may be limited. Industrial revenues are expected to decline from fiscal second-quarter levels for the remainder of the year. CFO and Treasurer Joshua Baugher said Power gross margin was 22.4% in the fiscal second quarter, while consolidated gross margin was 19.3%. He tied the Power result to project mix, contract mix and execution. Baugher noted that consolidated margin stepped down from 25% in the fourth quarter of fiscal 2026 to 21% in first-quarter fiscal 2027 and 19.3% in the fiscal second quarter as newer projects moved through earlier construction stages. In Q&A, CEO David Watson said future contracts should carry meaningful pricing reflecting inflation, labor costs, geography and contract risk. He stopped short of saying strong demand alone gives Argan higher pricing power. CEO David Watson said Industrial revenues rose 111% year over year to $76 million, but the segment’s 7.3% gross margin was below management’s expectations. Watson attributed the pressure to two non-data-center projects where updated completion economics weakened from initial expectations. Those jobs are expected to finish over the next six months. He cautioned that Industrial margins may remain below historical norms for another quarter or two. Management continues to see opportunities in data centers, power-related industrial work and fabrication. CEO David Watson said Argan’s new North Carolina fabrication facility is on track for completion in the fiscal third quarter. It is initially aimed at a $125 million data center project involving thermal expansion and energy storage tanks. Management expects the facility to contribute more than $10 million of quarterly Industrial revenues later this year and into next year while providing capacity for follow-on opportunities. Argan also closed the ValCor Communications acquisition. Watson said organic growth, ValCor synergies and the Teledata strategy could potentially double segment revenues from fiscal 2026 levels and support EBITDA growth, while acknowledging integration and execution risks. CEO David Watson’s closing message centered on execution discipline. Argan expects natural gas projects to dominate its near- and mid-term Power mix, while retaining renewable capabilities and expanding Industrial and Teledata capacity. Management also framed the balance sheet as a competitive advantage for staffing, bonding, organic investment and selective M&A. Argan ended the quarter with about $1 billion of cash and investments, $440 million of net liquidity and no debt. AGX currently carries a Zacks Rank #3 (Hold). Its Growth, Momentum and VGM Score are all A, while its Value Score is D, indicating stronger growth and momentum characteristics than value characteristics under the Zacks Style Scores framework. The Style Scores complement the Zacks Rank, with the strongest combinations generally pairing A or B scores with Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks. AGX’s #3 ranking keeps the overall signal more measured, and the Zacks Rank can change as earnings estimates are revised following the just-reported results. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Argan, Inc. (AGX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Argan (AGX) came out with quarterly earnings of $3.76 per share, beating the Zacks Consensus Estimate of $2.68 per share. This compares to earnings of $2.5 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +40.30%. A quarter ago, it was expected that this builder of energy plants would post earnings of $2.27 per share when it actually produced earnings of $3.24, delivering a surprise of +42.73%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Argan, which belongs to the Zacks Building Products - Miscellaneous industry, posted revenues of $383.98 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 28.95%. This compares to year-ago revenues of $237.74 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Argan shares have added about 29.2% since the beginning of the year versus the S&P 500's gain of 11.5%. While Argan has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Argan was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.14 on $342.27 million in revenues for the coming quarter and $12.60 on $1.3 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Miscellaneous is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Construction sector, Thor Industries (THO), is yet to report results for the quarter ended July 2026. This recreational vehicle maker is expected to post quarterly earnings of $0.95 per share in its upcoming report, which represents a year-over-year change of -58.9%. The consensus EPS estimate for the quarter has been revised 1.8% higher over the last 30 days to the current level. Thor Industries' revenues are expected to be $2.15 billion, down 14.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Argan, Inc. (AGX) : Free Stock Analysis Report Thor Industries, Inc. (THO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Argan, Inc.? Here are five stocks we like better. Argan reported record fiscal Q2 2027 results: Revenue rose 62% year over year to $384 million, net income increased to $53.3 million, and adjusted EBITDA climbed to $70 million, with the margin expanding to 18.2%. The power segment drove performance, generating 78% of revenue as activity increased across several large natural-gas and renewable projects. However, consolidated backlog declined to approximately $2.5 billion, and management cautioned that project mix could limit sequential growth in Q3. Argan maintained a strong financial position with about $1 billion in cash and investments, $440 million in net liquidity and no debt. The company returned $51.7 million to shareholders in the first half through dividends and share repurchases. 3 Stocks Cashing In on AI While Everyone Watches NVIDIA Argan (NYSE:AGX) reported record second-quarter results for fiscal 2027, with revenue, net income and adjusted EBITDA rising sharply as activity increased across its power, industrial and Teledata segments. For the quarter ended July 31, 2026, revenue increased 62% year over year to $384 million. Net income reached a record $53.3 million, or $3.76 per diluted share, compared with $35.3 million, or $2.50 per diluted share, in the prior-year quarter. Adjusted EBITDA rose to a record $70 million from $38.5 million, while adjusted EBITDA margin expanded to 18.2% from 16.2%. → AST SpaceMobile Is Down 54%—Can FCC Progress and BlueBirds Reverse the Slide? Chief Executive Officer David Watson said the results reflected operational momentum across the company’s businesses. “Each of our operating segments recorded substantially improved revenue,” Watson said, citing 53% growth in power revenue, 111% growth in industrial revenue and 40% growth in Teledata revenue. The power segment remained Argan’s largest business, generating $301 million in quarterly revenue, or 78% of consolidated revenue. Segment revenue increased 53% from the comparable period last year, and the business reported pre-tax book income of $66 million. → Palo Alto’s Rally Has One Big Problem Ahead of Earnings Argan’s consolidated gross margin was 19.3%, up from 18.6% a year earlier, while the power segment’s gross margin was 22.4%. Chief Financial Officer Josh Baugher said the improvement in gross profit and margin was primarily driven by the power segment, including project and contract mix and project execution. However, Baugher noted that consolidated margins have declined from 25% in the fourth quarter of fiscal 2026 and 21% in the first quarter of fiscal 2027. He attributed the sequential movement to project mix and the stages of construction of current projects. Earlier completion of certain jobs benefited margins in prior periods, while second-quarter revenue included earlier-stage work on current power projects. → Securing AI: 5 Most-Upgraded Stocks From the Q2 Reporting Season Watson said Argan’s power backlog includes four U.S. gas-fired plants totaling more than 4.1 gigawatts. The company’s backlog at July 31 was approximately 80% natural gas projects, 11% renewable projects and 8% industrial work. He said complex combined-cycle projects are expected to represent most of the backlog in the near and medium term, although the company intends to maintain its renewable-energy capabilities. Among projects in progress, Argan said its 1.2-gigawatt combined-cycle natural-gas plant for Sandow Lakes Energy Company in Texas is advancing as expected. Construction is also ramping at a 1.4-gigawatt Texas project with Competitive Power Ventures and an 860-megawatt Texas project. The company is also working on a 700-megawatt U.S. combined-cycle plant, a 300-megawatt biofuel plant in Ireland for SSE Thermal, and a 170-megawatt thermal facility in Ireland. Watson said the company expects to reach substantial completion ahead of schedule on a 405-megawatt Midwest solar project later in the month. Its final project in a three-part Midwest solar and battery portfolio has reached final completion. Industrial segment revenue more than doubled to $76 million, representing 20% of company revenue, while pre-tax book income was approximately $4 million. The segment’s backlog was $210 million at the end of the quarter. Industrial gross margin was 7.3%, below management’s expectations. Watson said estimates to complete on a couple of projects unrelated to the company’s data-center work declined from initial estimates, affecting quarterly profitability. Argan expects to complete those projects over the next six months, and Watson said industrial margins may remain below historical norms for one or two quarters as they wind down. The company is constructing a second fabrication facility in North Carolina, which Watson said is on track for completion in the third quarter. The facility is initially intended to support a $125 million data-center project involving fabrication of thermal expansion and energy-storage tanks. Management expects the facility to contribute more than $10 million of quarterly industrial revenue later this year and into next year. Teledata revenue increased 40% to $7 million. Near the end of the quarter, Argan acquired ValCor Communications, a Connecticut-based provider of installation and repair services for information, communications and data networks. Watson said the acquisition provides a New England presence and adds Fortune 500 technology, defense and aerospace customers. Management expects organic growth, ValCor-related synergies and execution of the Teledata strategy to potentially double the segment’s revenue from fiscal 2026 levels and support EBITDA growth in coming quarters. Argan’s consolidated backlog of fully committed projects was $2.5 billion at July 31, down from $2.9 billion at the beginning of the fiscal year. Watson said the company only includes contracts in backlog after receiving a notice to proceed, making the balance sensitive to the timing of project awards, starts and completions. Despite not adding a major power project during the quarter, management said it offset part of backlog usage through more than $260 million of scope additions on existing work, smaller new jobs and intra-quarter revenue. Watson said Argan expects to add “a handful” of new projects over the next seven to 15 months, but did not provide a specific backlog target. Management said recent regulatory scrutiny and media reports involving data-center development have not changed customer or developer behavior. Watson said developers still must secure milestones including power purchase agreements, permits, gas access, water permits, turbines and financing before projects proceed. For fiscal 2027, Watson said revenue is expected to be “significantly above” fiscal 2026. He cautioned that especially strong second-quarter results could limit sequential growth in the third quarter, particularly because industrial revenue is expected to decline from second-quarter levels for the remainder of the year. Argan ended the quarter with approximately $1 billion in cash and investments, net liquidity of $440 million and no debt. Net liquidity increased from $421 million at Jan. 31, even as the company returned $51.7 million to shareholders during the first six months of fiscal 2027. The company continued to pay a quarterly dividend of $0.50 per share, equivalent to a $2 annualized rate. Argan also has a share repurchase authorization of up to $200 million through Jan. 31, 2030. Since the repurchase program began in November 2021, the company has returned approximately $123.8 million through buybacks, according to management. Argan, Inc (NYSE: AGX) is a holding company that provides professional technical and management services to the power generation and renewable energy industries. Through its wholly owned subsidiaries, the company delivers engineering, procurement and construction management (EPCM), commissioning and operations and maintenance (O&M) services for a broad range of energy facilities. Argan focuses on projects for utility, industrial and municipally owned clients, helping to bring efficient thermal and renewable energy plants into operation and maintain optimal performance over the asset life cycle. The company's principal subsidiaries include Gemma Power Systems, which specializes in turnkey construction of combined-cycle, simple-cycle, cogeneration and renewable energy plants; Atlantic Projects Company, which provides electrical balance-of-plant, control systems, instrumentation and commissioning services; and Infrastructure Solutions, which offers industrial maintenance, outage support and modification services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Argan Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

Record Revenue of $384 Million; Record Net Income of $53.3 Million ARLINGTON, Va., September 02, 2026--(BUSINESS WIRE)--Argan, Inc. (NYSE: AGX) ("Argan" or the "Company") today announces financial results for its second quarter of fiscal year 2027 ended July 31, 2026. The Company will host an investor conference call today, September 2, 2026, at 5:00 p.m. ET. David Watson, President and Chief Executive Officer of Argan, commented, "We delivered a strong second quarter, highlighted by record revenue of $384 million, a gross margin of 19.3%, record net income of $53 million, and record adjusted EBITDA of $70 million. "Our Power segment continued to execute extremely well during the second quarter, growing revenue 53% year over year to $301 million at a gross margin of 22%. Following the close of the quarter, we achieved final completion on the remaining project of our Midwest Solar and Battery Projects. In our Industrial segment, construction of our new fabrication facility continues to progress as planned, with expected completion next quarter. The plant will support heightened demand for the fabrication of vessels for data centers. In our Teledata segment, we closed the acquisition of ValCor Communications, a Connecticut-based provider of installation and repair services for information, communication, and data networks. The addition of ValCor increases our geographic presence and expands the segment’s client base to defense, aerospace, and technology clients in the region. "We are energized by the opportunities we are seeing across all three of our business segments and believe that our diverse capabilities, proven track record of excellent execution, and strong balance sheet position us well to benefit from the current demand environment. This is an exciting time for Argan and we remain focused on capturing the right projects with the right partners in the right geographies." Second Quarter Results Consolidated revenues for the quarter ended July 31, 2026, were $384.0 million, an increase of $146.2 million, or 61.5%, from consolidated revenues of $237.7 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 several contracts that have not yet reached peak construction. For the quarter ended July 31, 2026, Argan's consolidated gross profit was $74.2 million, or 19.3% of consolidated revenues, compared to $44.3 million, or 18.6% of consolidated revenues, for the quarter ended July 31, 2025. The gross profit percentage increased between periods primarily due to the changing mix of projects and contract types and strong execution in our Power segment. The increase in gross profit percentage was partially offset by decreased performance on certain projects in our Industrial and Teledata segments. Selling, general and administrative expenses were $17.4 million and $14.2 million for the three months ended July 31, 2026 and 2025, respectively, and represented 4.5% and 6.0% of corresponding consolidated revenues, respectively. Other income, net, for the three months ended July 31, 2026 was $10.1 million, which primarily reflected investment income earned during the period. For the quarter ended July 31, 2026, Argan achieved net income of $53.3 million, or $3.76 per diluted share, compared to $35.3 million, or $2.50 per diluted share, for last year’s second quarter. EBITDA for the quarter ended July 31, 2026 increased to $67.6 million compared to $36.2 million for the same quarter of last year. Adjusted EBITDA for the quarter ended July 31, 2026 increased to $70.0 million compared to $38.5 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 $1.03 billion and $895.0 million as of July 31, 2026 and January 31, 2026, respectively. Net liquidity was $440.4 million at July 31, 2026 and $421.0 million at January 31, 2026; furthermore, the Company had no debt. First Six Months Results Consolidated revenues for the six months ended July 31, 2026, were $674.9 million, an increase of $243.5 million, or 56.5%, from consolidated revenues of $431.4 million reported for the comparable prior-year period. For the six months ended July 31, 2026, consolidated gross profit increased to approximately $135.3 million, or 20.1% of consolidated revenues, compared to consolidated gross profit of $81.1 million, or 18.8% of consolidated revenues, reported for the six months ended July 31, 2025. For the six months ended July 31, 2026, Argan achieved net income of $99.4 million, or $7.01 per diluted share, versus net income of $57.8 million, or $4.09 per diluted share, for last year’s comparable period. EBITDA for the six months ended July 31, 2026 increased to $122.0 million compared to $66.5 million in the same period of last year. Adjusted EBITDA for the six months ended July 31, 2026 increased to $126.5 million compared to $70.0 million for the same period of last year. As of July 31, 2026, consolidated project backlog was approximately $2.5 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, September 2, 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: 327373. The call and the accompanying slide deck will also be webcast at: https://www.webcaster5.com/Webcast/Page/2961/54404 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 September 16, 2026, and can be accessed by dialing 877-481-4010 (domestic) or 919-882-2331 (international). The replay access code is 54404. A replay of the webcast can be accessed until September 2, 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260902354415/en/ Contacts Investor Relations Contacts: John Nesbett/Jennifer BelodeauIMS Investor [email protected]

Argan, Inc. AGX is scheduled to report its second-quarter fiscal 2027 results on Sept. 2, after market close.In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 42.7% and 15.2%, respectively. Year over year, both metrics grew 102.5% and 50.2%, respectively. The Zacks Consensus Estimate for fiscal second-quarter earnings per share (EPS) has remained unchanged at $2.68 over the past 60 days. The estimate indicates a 7.2% year-over-year improvement.The consensus estimate for revenues is pegged at $297.8 million, indicating a 25.3% year-over-year rise from $237.7 million. Argan, Inc. price-eps-surprise | Argan, Inc. Quote RevenuesArgan’s top-line performance in the fiscal second quarter is expected to have benefited from rising demand for data centers, EV adoption, water treatment and other industrial projects. The growing public infrastructure funding within and outside the United States borders, alongside the rapid evolution from natural gas-fired and coal plants, is likely to have been boosting the demand for AGX’s capabilities in similar fields.This growth cycle is likely visible in the increased contributions from AGX’s three reportable segments, Power Services (contributing 77.9% of first-quarter fiscal 2027 revenues), Industrial Services (20%) and Telecom Services (2.1%).However, the timing of work performed and project mix in a few recently received awards are expected to have pulled back the prospects to some extent. Nonetheless, a growing backlog in key end markets and execution capabilities of Argan are expected to have minimized the blow in the fiscal second quarter.EarningsRegarding the bottom line, during the fiscal second quarter, the metric is expected to have gained year over year on the back of increased leverage from revenue growth, strong execution and its efforts in ensuring project timing and delivery alignment.Although increases in certain project costs and selling, general and administrative expenses, alongside ongoing global geopolitical uncertainty, have been concerning, favorable market demand trends are likely to have offset these adversities. Our proven model does not conclusively predict an earnings beat for Argan this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.AGX’s Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.AGX’s Zacks Rank: The stock currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here. Here are some better-ranked stocks from the Construction sector to consider.Comfort Systems USA, Inc. FIX currently sports a Zacks Rank of 1. Comfort Systems delivered a trailing four-quarter earnings surprise of 34.6%, on average. The stock has climbed 7.5% in the past six months.The Zacks Consensus Estimate for Comfort Systems’ 2026 sales and EPS indicates growth of 38.3% and 58.8%, respectively, from a year ago.Quanta Services, Inc. PWR presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 17%, on average. Quanta shares have inched up 6% in the past six months.The consensus estimate for Quanta’s 2026 sales and EPS indicates growth of 38.4% and 52.3%, respectively, from the prior-year levels.Tutor Perini Corporation TPC currently sports a Zacks Rank of 1. Tutor Perini delivered a trailing four-quarter earnings surprise of 17.8%, on average. The stock has gained 20.3% in the past six months.The Zacks Consensus Estimate for Tutor Perini’s 2026 sales and EPS implies an increase of 14% and 27.7%, respectively, from a year ago. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Argan, Inc. (AGX) : Free Stock Analysis Report Quanta Services, Inc. (PWR) : Free Stock Analysis Report Comfort Systems USA, Inc. (FIX) : Free Stock Analysis Report Tutor Perini Corporation (TPC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Argan, Inc.’s AGX Power segment delivered a standout performance in the first quarter of fiscal 2027, with gross margin expanding to 23.6% from 20.6% a year ago. The improvement came alongside a sharp increase in activity, as Power revenues rose to $226.7 million from $160.4 million in the year-ago quarter. Gross profit from the segment consequently increased to $53.6 million from $33 million.Argan’s margin expansion was driven squarely by strength in the Power segment, where a more favorable project and contract mix combined with disciplined execution to lift profitability. The early substantial completion of the final Midwest Solar and Battery Project and the completion of the Trumbull Energy Center provided additional upside, helping push consolidated gross margin to 21% from 19% a year earlier. The improvement underscores how effective project execution is translating into stronger company-wide earnings power.The sustainability case is strengthened by the scale of Argan’s existing Power workload. The segment ended the quarter with approximately $2.5 billion of backlog, while consolidated backlog stood at $2.8 billion. Argan’s Power portfolio includes four U.S. gas-fired plants totaling more than 4.1 gigawatts. Several major projects are moving into more active construction phases. These include the 1.2-GW Sandow Lakes Power Station, a 1.4-GW Texas combined-cycle facility, an 860-MW Texas thermal project and a roughly 700-MW combined-cycle plant. Management said construction activity is ramping across several of these projects.Still, sustaining a 23.6% Power margin may be challenging. Management noted that several major projects remain in their early stages and carry execution risks. It also indicated that consolidated blended margins have generally ranged from the high teens to the low 20s. Thus, while the latest margin level may fluctuate, Argan’s strong execution, expanding Power activity and multiyear backlog suggest that earnings could remain robust. As Argan pursues larger power-generation projects, it competes in an infrastructure market that also includes significantly larger contractors such as Quanta Services, Inc. PWR and EMCOR Group, Inc. EME. Unlike these more diversified peers, Argan remains heavily concentrated on power-generation EPC work, with its Power segment accounting for 78% of first-quarter fiscal 2027 revenues and about $2.5 billion of backlog. Quanta is benefiting from broad demand across utility, generation and technology infrastructure. In the second quarter of 2026, revenues reached $9.6 billion, while backlog climbed to a record $53 billion. Management said larger utility-generation and technology load-center programs are still in the early stages and should build over the coming years. Quanta is also expanding its generation capabilities, although it remains selective about contractual risk on combined-cycle projects.EMCOR is seeing similarly strong demand from mission-critical construction. Second-quarter 2026 revenues increased 19.8% to $5.15 billion, while remaining performance obligations surged 44% year over year to a record $17.14 billion. Data centers remain a major growth driver, with Electrical Construction revenues rising 24% and Mechanical Construction revenues climbing 31%. Management also noted that AI data center projects are becoming larger and more complex, with projects increasingly reaching 100-200 MW or developing into multi-building campuses.For Argan, the competitive backdrop reinforces the value of execution. While Quanta and EMCOR bring greater scale and diversification, Argan’s focused expertise in complex gas-fired EPC projects and its 23.6% Power gross margin highlight its ability to generate attractive profitability from a more concentrated project base. Shares of this global provider of consulting services in engineering, procurement and construction have surged 68.5% year to date, outperforming the Zacks Building Products - Miscellaneous industry, the broader Construction sector and the S&P 500 Index. AGX YTD Share Price Performance Image Source: Zacks Investment Research AGX stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 35.6, as evidenced by the chart below. AGX’s P/E Ratio (Forward 12-Month) vs. Industry Image Source: Zacks Investment Research AGX’s earnings estimates for fiscal 2027 and 2028 have remained unchanged in the past 30 days. The revised estimates for fiscal 2027 and 2028 imply year-over-year growth of 38% and 29.4%, respectively. Image Source: Zacks Investment Research AGX’s Zacks RankArgan stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Argan, Inc. (AGX) : Free Stock Analysis Report Quanta Services, Inc. (PWR) : Free Stock Analysis Report EMCOR Group, Inc. (EME) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research