Argan (AGX) Q3 2025 earnings summary

Executive summary

• Third-quarter revenues reached $257 million, up 57% year-over-year, with net income of $28 million and EBITDA of $37.5 million, both among the highest in company history.

• EPS for the quarter was $2.00, the highest since October 2018.

• Project backlog stood at $800 million, with about 60% related to renewables, reflecting strong market demand and diversification.

• The company is well-positioned to capitalize on rising energy demand, with a diversified backlog and robust pipeline of traditional and renewable power projects.

• Balance sheet remains robust with $506 million in cash and investments, no debt, and increased shareholder returns.

Financial highlights

• Q3 revenues were $257 million (up from $164 million), with nine-month revenues at $642 million (up from $409 million).

• Q3 net income was $28 million (up from $5.5 million); nine-month net income was $54.1 million.

• Q3 EBITDA was $37.5 million (up from $12.2 million); EBITDA margin improved to 14.6%.

• Gross margin for Q3 improved to 17.2% from 11.7% year-over-year; gross profit was $44.3 million.

• Diluted EPS for Q3 was $2.00, up from $0.40; nine-month EPS was $3.91.

Outlook and guidance

• Backlog expected to exceed $1 billion by early next year, with multiple gas-fired projects anticipated to start over the next eight months.

• Management expects continued strong demand for power generation and industrial construction services, driven by electrification, data centers, and manufacturing onshoring.

• About 26% of the $800 million backlog is expected to convert to revenue in the remainder of fiscal 2025, with most of the rest recognized in fiscal 2026 and 2027.

• Positioned as a partner of choice for innovative energy solutions amid rising power grid demand and industry growth drivers like AI, EVs, and renewables.

• Industrial segment revenues may decline in the next quarters before rebounding in fiscal 2026, based on project timing.