Argan (AGX) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 FY2026 results with revenue up 4.7–5% year-over-year and 23% sequentially, driven by Power Industry Services and robust demand across all segments.

• Net income nearly doubled to $35.3 million ($2.50 EPS), with EBITDA of $36.2 million (15.2% margin) and gross margin improving to 18.6%.

• Project backlog reached a record $2.0 billion at July 31, 2025, reflecting major new contracts in power, renewables, and industrial services.

• Strong cash and investment position of $572 million, net liquidity of $344 million, and no debt.

• Continued focus on disciplined project execution, capital allocation, and long-term growth strategy.

Financial highlights

• Q2 revenue: $237.7–$238 million, up 4.7–5% year-over-year and 23% sequentially.

• Gross profit: $44.3 million (18.6% margin), up from $31.1 million (13.7%) last year.

• Net income: $35.3 million ($2.50 per diluted share), up from $18.2 million ($1.31 per share) last year.

• EBITDA: $36.2 million (15.2% margin), up from $24.8 million (10.9%) last year.

• Six-month revenue: $431.4 million, up 12.1% year-over-year; net income: $57.8 million ($4.09 per share).

Outlook and guidance

• Expect to exceed prior year’s gross profit margins as strong execution continues and backlog conversion remains high.

• Anticipate backlog to surpass $2 billion by fiscal year-end, with several large power projects in the pipeline.

• Positioned for growth amid rising electricity demand, electrification, and AI/data center expansion.

• Confident in ability to handle 10–12 major projects concurrently, focusing on organic growth and revenue diversification.

• Monitoring potential impacts from tariffs, supply chain uncertainties, and regulatory changes.