Argan (AGX) Q3 2026 earnings summary

Executive summary

• Achieved record project backlog of $3.0 billion as of October 31, 2025, supporting approximately 6 GW in new energy builds, including major new gas-fired projects in Texas and the Midwest.

• Quarterly revenue was $251.2 million, down 2.3% year-over-year but up 6% sequentially, with gross margin improving to 18.7%.

• Net income for the quarter was $30.7 million ($2.17 per diluted share), up 9.7% year-over-year; EBITDA reached $40.3 million (16% margin).

• Strong balance sheet with $727 million in cash/investments, $377 million net liquidity, and no debt.

• Increased quarterly dividend by 33% to $0.50 per share, third consecutive annual increase; share repurchase authorization raised to $150 million.

Financial highlights

• Q3 2026 revenues: $251.2 million (down 2% YoY, up 6% sequentially); nine-month revenues: $682.6 million (up 6.4% YoY).

• Gross profit for Q3: $46.9 million (18.7% margin), up from $44.3 million (17.2%) last year.

• Net income for Q3: $30.7 million; nine-month net income: $88.6 million (up from $54.1 million YoY).

• EBITDA for Q3: $40.3 million (16% margin); nine-month EBITDA: $107 million (15.7% margin).

• Cash, cash equivalents, and investments totaled $727 million as of October 31, 2025; no debt.

Outlook and guidance

• Record backlog and diversified project pipeline position the company for continued growth.

• Electrification, AI/data center expansion, and manufacturing onshoring are driving strong demand.

• Management expects continued revenue growth and enhanced profitability, with optimism for adding projects to backlog.

• Gross margin guidance remains conservative at 16%+, though recent performance exceeded this.

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