ARGAN, Inc. Reports 50.2% Revenue Growth to $290.9 Million in Latest Quarter

ARGAN, Inc. reported significant financial growth in its latest quarterly results, with revenues reaching $290.9 million for the three months ended April 30, 2026, a 50.2% increase from $193.7 million in the same period last year. The company's net income more than doubled, rising to $46.1 million, or $3.24 per diluted share, compared to $22.6 million, or $1.60 per diluted share, in the prior year. This growth was driven primarily by increased construction activities in the Power segment, which accounted for approximately 77.9% of total revenues.

The company experienced notable changes in its operational metrics, with the Power segment's revenues increasing by 41.4% to $226.7 million, largely due to ongoing projects such as the 1.4 GW Thermal Project and the 700 MW Combined-Cycle Project. The Industrial segment also saw a substantial revenue increase of 99.8%, reaching $58.3 million, while the Teledata segment contributed $6.0 million, up from $4.1 million. Overall, the gross profit margin improved to 21.0%, up from 19.0% in the previous year, reflecting better project execution and a favorable mix of contracts.

In terms of strategic developments, Argan has been actively expanding its project backlog, which stood at $2.8 billion as of April 30, 2026, slightly down from $2.9 billion at the end of January 2026. The company has also been involved in several significant projects, including a new natural gas-fired power plant in Texas and a biofuel power plant in Ireland. Additionally, Argan's board of directors authorized an increase in the share repurchase program by $50 million, bringing the total authorization to $200 million, indicating a commitment to returning value to shareholders.

Operationally, Argan's cash and cash equivalents increased to $355.8 million, up from $339.5 million at the end of January 2026. The company generated $113.4 million in cash from operating activities during the quarter, reflecting strong performance across its segments. The total number of shares outstanding as of April 30, 2026, was 14,020,427, with a basic earnings per share of $3.30, compared to $1.65 in the prior year. The company also declared a cash dividend of $0.50 per share, up from $0.375 in the previous year.

Looking ahead, Argan remains optimistic about its growth prospects, particularly in the Power segment, where demand for reliable energy sources is expected to rise. The company is closely monitoring market conditions, including potential impacts from trade policies and supply chain challenges, which could affect project costs and timelines. With a strong backlog and ongoing projects, Argan is well-positioned to capitalize on the growing demand for energy infrastructure in the U.S. and abroad.