Argan (NYSE:AGX) Releases Earnings Results, Beats Expectations By $1.12 EPS

Argan (NYSE:AGX) announced its earnings results on Wednesday. The construction company reported $3.76 EPS for the quarter, topping the consensus estimate of $2.64 by $1.12, FiscalAI reports. The business had revenue of $383.98 million during the quarter, compared to the consensus estimate of $300.53 million. Argan had a net margin of 15.09% and a return on equity of 39.69%. Argan’s revenue was up 61.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.50 EPS.

Here are the key takeaways from Argan’s conference call:

• Record Q2 performance: Revenue rose 62% year over year to $384 million, while net income reached $53.3 million, or $3.76 per diluted share, and adjusted EBITDA was a record $70 million.
• Power revenue increased 53% to $301 million, with a strong 22.4% gross margin, supported by demand for natural-gas-fired generation and a backlog that includes more than 4.1 gigawatts of U.S. gas projects.
• Argan maintained a strong financial position with approximately $1 billion in cash and investments, $440 million of net liquidity, and no debt, while continuing to return capital through its dividend and share-repurchase program.
• Consolidated backlog declined to $2.5 billion from $2.9 billion at the start of the fiscal year, although management expects to add a handful of projects over the next 7–15 months and said revenue will remain meaningfully above fiscal 2026 levels.
• Industrial gross margin fell to 7.3% due to unfavorable estimate-to-complete revisions on several projects, and management expects margins may remain below historical norms for another quarter or two; Q3 revenue could also show limited sequential growth after Q2’s pull-forward.

Argan Stock Performance

Shares of NYSE AGX opened at $413.51 on Friday. The stock has a market capitalization of $5.80 billion, a P/E ratio of 32.71 and a beta of 0.57. The stock’s fifty day moving average is $579.76 and its 200 day moving average is $584.64. Argan has a 52 week low of $197.00 and a 52 week high of $805.75.

Argan Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Thursday, July 23rd were issued a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend was Thursday, July 23rd. Argan’s dividend payout ratio is 17.57%.

More Argan News

Here are the key news stories impacting Argan this week:

• Positive Sentiment: Argan reported quarterly earnings of $3.76 per share, versus the consensus estimate of approximately $2.64-$2.68, while revenue reached $384.0 million compared with expectations of about $300.5 million. Revenue increased 61.5% year over year, and EPS rose from $2.50 in the prior-year quarter. Argan Second Quarter Fiscal 2027 Results
• Positive Sentiment: The Power segment grew 53% to approximately $301 million, supported by demand for power infrastructure related to electrification, data centers and domestic manufacturing. Management highlighted a strong gas-project pipeline and approximately $2.5 billion in backlog, providing future revenue visibility. Argan Q2 Earnings and Revenue Beat
• Positive Sentiment: Gross profit rose to $74.2 million, representing a 19.3% margin, while the company ended the quarter with roughly $1.03 billion in cash, cash equivalents and investments and no debt. Lake Street Capital upgraded AGX from Hold to Buy and set a $600 price target, implying substantial potential upside from the cited trading level.
• Neutral Sentiment: Management’s outlook remains constructive, but quarterly revenue growth could moderate as project timing and capacity expansion affect near-term comparisons. Backlog was below the approximately $2.9 billion recorded at the end of January, despite remaining sizable.
• Negative Sentiment: Reported insider-trading data showed numerous sales and no insider purchases during the past six months. While these transactions may reflect diversification or scheduled selling, they could temper investor enthusiasm, particularly after the stock’s substantial prior gains.

Analyst Ratings Changes

Several research firms recently weighed in on AGX. Zacks Research cut Argan from a “strong-buy” rating to a “hold” rating in a report on Friday, August 7th. Lake Street Capital raised Argan from a “hold” rating to a “buy” rating and set a $600.00 target price for the company in a report on Thursday. Weiss Ratings raised shares of Argan from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, August 27th. Finally, Wall Street Zen downgraded shares of Argan from a “buy” rating to a “hold” rating in a research note on Saturday, August 22nd. Five investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $470.40.

Insider Activity

In other news, Chairman William Griffin, Jr. sold 20,000 shares of the business’s stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $760.43, for a total value of $15,208,600.00. Following the completion of the transaction, the chairman directly owned 40,976 shares in the company, valued at approximately $31,159,379.68. The trade was a 32.80% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Joshua Baugher sold 760 shares of the company’s stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $733.30, for a total transaction of $557,308.00. Following the sale, the chief financial officer directly owned 1,479 shares of the company’s stock, valued at approximately $1,084,550.70. This trade represents a 33.94% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 127,973 shares of company stock valued at $87,554,828. Company insiders own 2.99% of the company’s stock.

Hedge Funds Weigh In On Argan

Several hedge funds and other institutional investors have recently modified their holdings of AGX. Danske Bank A S bought a new stake in shares of Argan during the 3rd quarter worth $27,000. Greenline Wealth Management LLC bought a new position in Argan in the fourth quarter valued at about $43,000. National Bank of Canada FI raised its stake in Argan by 26.7% during the third quarter. National Bank of Canada FI now owns 147 shares of the construction company’s stock worth $40,000 after acquiring an additional 31 shares in the last quarter. Palisade Asset Management LLC bought a new position in shares of Argan in the third quarter worth about $41,000. Finally, Smartleaf Asset Management LLC lifted its holdings in shares of Argan by 191.7% in the fourth quarter. Smartleaf Asset Management LLC now owns 210 shares of the construction company’s stock worth $66,000 after acquiring an additional 138 shares during the last quarter. Institutional investors own 79.43% of the company’s stock.

Argan Company Profile

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.