Argan (AGX) Q2 2027 earnings summary

Executive summary

• Achieved record consolidated revenue of $384 million for Q2 FY2027, up 62% year-over-year, with all segments contributing to growth and gross margin of 19.3%.

• Net income reached a record $53.3 million ($3.76 per diluted share), up over 50% year-over-year.

• Adjusted EBITDA was $70 million (18.2% margin), also a record.

• Completed the acquisition of ValCor Communications, expanding the Teledata segment's reach into New England and the defense/aerospace market.

• Maintained a strong balance sheet with $1 billion in cash/investments, $440 million net liquidity, and no debt.

Financial highlights

• Q2 revenue grew 62% year-over-year to $384 million, driven by Power segment project ramp-up.

• Gross profit was $74.2 million (19.3% margin), up from $44.3 million (18.6%) last year.

• Net income for Q2 was $53.3 million, up from $35.3 million a year ago.

• Adjusted EBITDA for Q2 was $70 million (18.2% margin), up from $38.5 million (16.2%) last year.

• Six-month revenue rose 56.5% to $674.9 million; net income was $99.4 million ($7.01 per share).

Outlook and guidance

• Project backlog stood at $2.5 billion as of July 31, 2026, primarily in the Power segment, with 48% expected to convert to revenue in the next 12 months.

• Management expects continued strong demand for EPC services, especially for natural gas-fired and renewable energy projects, driven by U.S. electricity demand and data center growth.

• Electricity demand expected to rise 25% by 2030 and 78% by 2050, supporting long-term growth.

• Confident in ability to execute 10-12 jobs simultaneously, supported by record headcount.

• Focus remains on capturing high-quality projects with strategic partners in key geographies.