Argan (AGX) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 results with revenue of $237.7M–$238M, up 5% year-over-year and 23% sequentially, driven by Power Industry Services and major project wins.

• Net income nearly doubled to $35.3M ($2.50 EPS), with EBITDA of $36.2M–$36.3M (15.2% margin) and gross margin of 18.6%.

• Project backlog reached a record $2.0B as of July 31, 2025, reflecting robust demand and new contracts in power, industrial, and renewable sectors.

• Strong cash position of $572M, net liquidity of $344M–$344.5M, and no debt.

• Increased quarterly dividend to $0.375 per share and expanded share repurchase authorization to $150M.

Financial highlights

• Q2 revenue: $237.7M–$238M, up 5% year-over-year; gross profit: $44.3M (18.6% margin), up from $31.1M (13.7%).

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

• EBITDA: $36.2M–$36.3M (15.2% margin), up from $24.8M (10.9%).

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

• Cash, cash equivalents, and investments totaled $572M at quarter-end.

Outlook and guidance

• Expect to exceed prior year’s gross profit margins and anticipate backlog to surpass $2B by fiscal year-end.

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

• Management expects strong EPC demand, especially in natural gas and renewables, with 26% of backlog expected to convert in fiscal 2026.

• Focus on disciplined project execution, capital allocation, and long-term shareholder value.