Argan (AGX) Q4 2026 earnings summary

Executive summary

• Achieved record revenue of $262.1 million in Q4 and $944.6 million for fiscal 2026, with strong execution and substantial growth in project backlog.

• Delivered record net income of $49.2 million in Q4 and $137.8 million for the year, with EPS of $3.47 and $9.74, respectively.

• Added $2.5 billion in new contract value, increasing project backlog to $2.9 billion at year-end.

• Maintained a strong balance sheet with $895 million in cash and investments, $421 million net liquidity, and no debt.

• Raised quarterly dividend to $0.50 per share, marking the third consecutive annual increase.

Financial highlights

• Q4 revenue up 13% year-over-year to $262.1 million, driven by Power segment project timing.

• Q4 gross margin improved to 25% from 20.5% in prior year; full-year gross margin rose to 20.5% from 16.1%.

• Q4 EBITDA reached $56 million (21.4% margin); full-year EBITDA was $163 million (17.2% margin).

• Net income for Q4 was $49.2 million, up from $31.4 million last year; full-year net income was $137.8 million, up from $85.5 million.

• SG&A expenses increased to $17.9 million in Q4 and $59 million for the year, but remained consistent as a percentage of revenue.

Outlook and guidance

• Strong demand for large, complex power projects expected to continue, driven by electrification, AI/data center growth, and grid modernization.

• Confident in ability to execute 10-12 projects simultaneously; currently have capacity for additional jobs.

• Gross margin for fiscal 2027 expected to fluctuate due to project mix and execution, with no specific guidance provided.

• Robust pipeline of opportunities across all segments and geographies.

• Electricity demand expected to rise 25% by 2030 and 78% by 2050 from 2023 levels.