Argan posts record revenue with 50% jump
The industrial contractor reported $46.1 million in net income for the quarter, more than double the year-earlier period.
The industrial contractor Argan (AGX) reported record revenue and more than doubled its net income in the fiscal first quarter, driven by broad-based growth across its operating segments. Revenue reached $291.0 million, up 50.2% from $193.7 million a year earlier, accelerating from 23% growth in the prior-year period and 12.7% in the previous quarter.
The results marked a sharp inflection after a period of moderating growth, with the company citing strong execution and a favorable project mix shift in its power segment. Gross margin expanded to 21.0% from 19.0% a year earlier, though it declined sequentially from 25.0% in the prior quarter. Net income rose to $46.1 million, or $3.24 a share, from $22.6 million, or $1.60 a share, in the year-earlier period, while adjusted EBITDA increased 79.2% to $56.4 million.
All three operating segments contributed to the revenue growth, the company said, with the power segment’s improved gross margin playing a key role in the consolidated results. The early completion of the Midwest Solar and Battery Project further bolstered performance. Despite higher absolute costs, selling, general, and administrative expenses declined as a percentage of revenue to 5.4% from 6.5% a year earlier. Other income, net, also rose to $8.4 million from $5.4 million, driven by higher investment income.
Project backlog, however, declined sequentially to $2.8 billion at April 30, 2026, from $2.9 billion at the end of January, though it remained significantly higher than the $1.9 billion recorded a year earlier. The company attributed the sequential decline to timing of new awards, noting that backlog growth had slowed after a $1.6 billion year-over-year increase in the third quarter of fiscal 2026.
Cash and equivalents rose to $973.6 million at quarter-end from $895.0 million at January 31, continuing a multi-quarter upward trend. The company also announced plans for a new fabrication facility in North Carolina to support a data center pressure vessel contract, with completion expected in the third quarter of fiscal 2027.
Argan maintained its quarterly dividend at $0.50 a share, up from $0.375 a year earlier, while treasury stock repurchases increased to $134.97 million from $114.36 million at the end of the prior quarter. The company did not provide updated guidance for the full fiscal year.