Argan (AGX) investor relations material

Executive summary

• Achieved record quarterly revenue of $291 million, up 50.2% year-over-year, with all segments contributing to growth and gross margin of 21.0%.

• Net income rose to $46.1 million ($3.24 per diluted share), more than doubling from the prior year.

• Adjusted EBITDA increased to $56.4 million (19.4% margin), up from $31.5 million (16.3% margin) year-over-year.

• Project backlog remained robust at $2.8 billion, with major new EPC contracts and a strong pipeline.

• Maintained a strong balance sheet with $974 million in cash and investments, net liquidity of $421 million, and no debt.

Financial highlights

• Revenue grew 50% year-over-year to $291 million, driven by ramp-up in power and industrial segment projects.

• Gross profit reached $61.1 million (21% margin), up from $36.9 million (19% margin) last year.

• Net income more than doubled to $46.1 million, up from $22.6 million year-over-year.

• Adjusted EBITDA rose to $56.4 million from $31.5 million, with margin improvement.

• Cash, cash equivalents, and investments increased to $973.6 million; no debt on the balance sheet.

Outlook and guidance

• Expect to add several new projects over the next 10–18 months, maintaining capacity for 10–12 simultaneous jobs.

• Project pipeline remains robust, with continued high demand for power infrastructure, especially gas-fired plants and data centers.

• Margins expected to remain in the high teens to low 20s, with variability based on project execution.

• Approximately 42% of the $2.8 billion backlog is expected to convert to revenue over the next 12 months.

• New fabrication facility in North Carolina expected to be completed in Q3 FY2027 to support industrial segment growth.