Argan, Inc. (AGX) Announces Third Quarter Fiscal 2026 Earnings Results

Argan, Inc. (AGX) today announced its financial results for the fiscal quarter, revealing earnings per share of $2.17, which exceeded analysts’ expectations by $0.125. However, the company reported revenue of $251.2 million, falling short of the estimated $263.8 million by approximately $12.7 million. Despite the revenue miss, Argan’s strong earnings performance highlights its ability to outperform on profitability metrics.

Key Highlights:

• Argan, Inc. reported a record backlog of $3.0 billion.
• The company continues to show strong growth and profitability.
• A quarterly dividend increase of 33% was announced, raising it from $0.375 to $0.50 per common share.

Summary: Argan, Inc. has announced its financial results for the third quarter of fiscal year 2026, ending October 31, 2025, showcasing a record backlog of $3.0 billion, which underscores the company’s robust market position and ongoing demand for its services. David Watson, President and CEO, highlighted the company’s commitment to delivering strong growth and profitability, stating, “As Argan continues to deliver strong growth and profitability, we are pleased to increase our quarterly dividend.” This increase in the quarterly cash dividend to $0.50 per common share reflects the company’s financial health and its dedication to generating value for shareholders.

In addition to the impressive backlog and dividend increase, Argan’s performance indicates a solid foundation for future growth. The company is well-positioned to capitalize on the strong demand for its services, particularly in the power industry. The announcement of the dividend, payable on October 31, 2025, to stockholders of record at the close of business on October 23, 2025, further demonstrates Argan’s confidence in its ongoing profitability and commitment to returning value to its investors.

Argan, Inc. (AGX) has experienced a rollercoaster of price changes recently, with a notable decline of 6.37% over the past week, likely reflecting market volatility or investor profit-taking after a remarkable one-year surge of 141.29%. This impressive annual performance is underpinned by strong fundamentals, including a staggering two-year compound annual growth rate (CAGR) in earnings per share of 76.89% and revenue growth of 38.27%. The company’s free cash flow has also seen a robust CAGR of 56.20%, indicating solid operational efficiency and financial health. With a price-to-earnings ratio of 43.98, AGX is trading at a premium, which may suggest that investors are optimistic about its future growth potential. Furthermore, a return on invested capital of 51.11% and a net profit margin of 12.72% highlight the company’s ability to generate substantial returns from its investments. Despite the recent dip, the overall trajectory of Argan, Inc. remains bullish, driven by its strong financial metrics and growth prospects. Investors will be keen to see if the stock can regain momentum in the coming weeks.

Argan, Inc., through its subsidiaries, provides engineering, procurement, construction, commissioning, operations management, maintenance, project development, technical, and consulting services to the power generation and renewable energy markets. The company operates through Power Industry Services, Industrial Fabrication and Field Services, and Telecommunications Infrastructure Services segments. The Power Industry Services segment offers engineering, procurement, and construction contracting services to the owners of alternative energy facilities, such as biomass plants, wind farms, and solar fields; and design, construction, project management, start-up, and operation services for projects with approximately 15 gigawatts of power-generating capacity. This segment serves independent power project owners, public utilities, power plant equipment suppliers, and energy plant construction companies. The Industrial Fabrication and Field Services segment provides industrial field, and pipe and vessel fabrication services for forest products, industrial gas, fertilizer, and mining companies in southeast region of the United States. The Telecommunications Infrastructure Services segment offers trenchless directional boring and excavation for underground communication and power networks, as well as aerial cabling services; and installs buried cable, high and low voltage electric lines, and private area outdoor lighting systems. It also provides structured cabling, terminations, and connectivity that offers the physical transport for high-speed data, voice, video, and security networks. This segment serves state and local government agencies, regional communications service providers, electric utilities, and other commercial customers, as well as federal government facilities comprising cleared facilities in the mid-Atlantic region of the United States. Argan, Inc. was incorporated in 1961 and is headquartered in Rockville, Maryland.