Argan, Inc. Reports First Quarter Fiscal 2027 Results

Record Revenue of $291.0 Million; Backlog of $2.8 Billion

Argan, Inc. (NYSE: AGX) ("Argan" or the "Company") today announces financial results for its first quarter of fiscal year 2027 ended April 30, 2026. The Company will host an investor conference call today, June 4, 2026, at 5:00 p.m. ET.

Consolidated Financial Highlights
($ in thousands, except per share data)
		April 30,
For the Quarter Ended:		2026			2025			Change
Revenues			290,954			193,660			97,294
Gross profit			61,114			36,863			24,251
Gross margin			21.0			19.0			2.0
Net income			46,063			22,550			23,513
Diluted earnings per share			3.24			1.60			1.64
Adjusted EBITDA(1)			56,439			31,487			24,952
Adjusted EBITDA margin(1)			19.4			16.3			3.1
Cash dividends per share			0.500			0.375			0.125

		April 30,			January 31,
As of:		2026			2026			Change
Cash, cash equivalents and investments			973,555			894,981			78,574
Net liquidity(2)			421,419			421,000			419
Share repurchase treasury stock, at cost			134,969			114,361			20,608
Project backlog			2,767,000			2,929,000			(162,000

(1)		Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. Please refer to "Non-GAAP Financial Measures."
(2)		Net liquidity, or working capital, is defined as total current assets less total current liabilities.

David Watson, President and Chief Executive Officer of Argan, commented, "We delivered a strong start to fiscal 2027 with record revenue of $291 million, gross margin of 21%, diluted earnings per share of $3.24, and adjusted EBITDA of $56.4 million. Our first quarter results reflect exceptional execution across our business, with all three of our operating segments achieving significant revenue growth as compared to the first quarter of fiscal 2026.

"Our project pipeline remains robust, with heightened demand for our capabilities as the electrification of everything, the onshoring of domestic manufacturing, and the proliferation of data centers continue to create an urgent need for additional energy infrastructure. Gas-fired plants remain the ideal solution for delivering the reliable, uninterrupted power needed, and only a limited number of firms are able to successfully execute these complex projects. The robust demand environment, coupled with our proven track record, allows us a disciplined approach in choosing the right projects, in the right locations, with the right partners.

"Our industrial segment is also seeing increased demand, highlighted by a data center contract we were awarded in November 2025 for the fabrication of pressure vessels. In support of this project and to better position us to address new opportunities, we have begun construction on a new fabrication facility in North Carolina, which we expect to complete during the third quarter of fiscal 2027.

"Argan remains very well positioned with the skill set, financial flexibility, industry relationships and longstanding customer base to capitalize on the current demand environment as we strengthen our leadership role as a partner of choice for the buildout of energy and industrial infrastructure."

First Quarter Results

Consolidated revenues for the quarter ended April 30, 2026, were $291.0 million, an increase of $97.3 million, or 50.2%, from consolidated revenues of $193.7 million reported for the comparable prior-year quarter. The year-over-year increase reflects higher revenues across all of the Company's business segments. In the Power segment, revenue growth was driven by the continued ramp-up of construction activities on recently awarded contracts.

For the quarter ended April 30, 2026, Argan's consolidated gross profit was $61.1 million, or 21.0% of consolidated revenues, compared to $36.9 million, or 19.0% of consolidated revenues, for the quarter ended April 30, 2025. The increase primarily reflects improved gross profit margins in the Power segment, driven by a shift in project and contract mix, strong project execution, and the achievement of substantial completion ahead of schedule on the final Midwest Solar and Battery Project.

Selling, general and administrative expenses were $15.7 million and $12.5 million for the three months ended April 30, 2026 and 2025, respectively, and represented 5.4% and 6.5% of corresponding consolidated revenues, respectively.

Other income, net, for the three months ended April 30, 2026 was $8.4 million, which primarily reflected investment income earned during the period.

For the quarter ended April 30, 2026, Argan achieved net income of $46.1 million, or $3.24 per diluted share, compared to $22.6 million, or $1.60 per diluted share, for last year's first quarter. EBITDA for the quarter ended April 30, 2026 increased to $54.4 million compared to $30.3 million for the same quarter of last year. Adjusted EBITDA for the quarter ended April 30, 2026 increased to $56.4 million compared to $31.5 million for the same quarter of last year.

Argan continues to generate significant cash flow and increased its total balance of cash, cash equivalents and investments during the quarter. The total balances were $973.6 million and $895.0 million as of April 30, 2026 and January 31, 2026, respectively. Balance sheet net liquidity was $421.4 million at April 30, 2026 and $421.0 million at January 31, 2026; furthermore, the Company had no debt.

As of April 30, 2026, consolidated project backlog was approximately $2.8 billion, as compared to approximately $2.9 billion at January 31, 2026.

Conference Call and Webcast

Argan will host a conference call and webcast for investors today, June 4, 2026, at 5:00 p.m. ET.

Domestic stockholders and interested parties may participate in the conference call by dialing [phone] and international participants should dial [phone]; all callers shall use access code: 208616.

The call and the accompanying slide deck will also be webcast at: https://www.webcaster5.com/Webcast/Page/2961/54078

The conference call and slide deck may also be accessed via the Investor Center section of the Company's website at https://arganinc.com/investor-center. Please allow extra time prior to the call to visit the site.

A replay of the teleconference will be available until June 18, 2026, and can be accessed by dialing 877-481-4010 (domestic) or 919-882-2331 (international). The replay access code is 54078. A replay of the webcast can be accessed until June 4, 2027.

About Argan

Argan's primary business is providing a full range of construction and related services to the power industry. Argan's service offerings focus on the engineering, procurement, and construction of natural gas-fired power plants and renewable energy facilities, along with related commissioning, maintenance, project development and technical consulting services, through its Gemma Power Systems and Atlantic Projects Company operations. Argan also owns The Roberts Company, which is a fully integrated industrial construction, fabrication and plant services company, and SMC Infrastructure Solutions, which provides teledata infrastructure services.

Non-GAAP Financial Measures

The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States ("GAAP"). Within this press release, the Company makes reference to earnings before interest, taxes, depreciation and amortization ("EBITDA"), Adjusted EBITDA, and Adjusted EBITDA margin, each of which is a non-GAAP financial measure. The Company defines Adjusted EBITDA as EBITDA adjusted to exclude the impact of non-cash stock-based compensation expense. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by total revenues.

The Company believes these non-GAAP financial measures provide useful supplemental information to management and investors in evaluating the Company's operating performance because they exclude certain items that may not be indicative of the Company's core operating results or may affect comparability between periods or among companies with different capital structures, tax positions, depreciation policies, or equity compensation practices. Adjusted EBITDA and Adjusted EBITDA margin exclude stock-based compensation expense, a non-cash item that management believes impacts the comparability of operating results between reporting periods.

These non-GAAP financial measures should be considered in conjunction with, and not as substitutes for, the GAAP financial information presented in this press release. These measures have limitations as analytical tools because they exclude certain items, including interest, income tax expense, depreciation and amortization expense, and in the case of Adjusted EBITDA and Adjusted EBITDA margin, stock-based compensation expense. The methods used by the Company to calculate these non-GAAP financial measures may differ from methods used by other companies and, as a result, may not be comparable to similarly titled measures reported by other companies. Financial tables at the end of this press release provide reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures.

Safe Harbor Statement

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Reference is hereby made to the cautionary statements made by the Company with respect to risk factors set forth in its most recent reports on Form 10-K, Forms 10-Q and other SEC filings. The Company's future financial performance is subject to risks and uncertainties including, but not limited to, the successful addition of new contracts to project backlog, the receipt of corresponding notices to proceed with contract activities, and the Company's ability to successfully complete the projects that it obtains. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to the risk factors highlighted above and described regularly in the Company's SEC filings.

Argan, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(In thousands, except per share data)
		Three Months Ended
		April 30,
		2026				2025
		(Unaudited)
REVENUES			290,954				193,660
Cost of revenues			229,840				156,797
GROSS PROFIT			61,114				36,863
Selling, general and administrative expenses			15,719				12,521
INCOME FROM OPERATIONS			45,395				24,342
Other income, net			8,374				5,444
INCOME BEFORE INCOME TAXES			53,769				29,786
Provision for income taxes			7,706				7,236
NET INCOME			46,063				22,550
OTHER COMPREHENSIVE INCOME, NET OF TAXES
Foreign currency translation adjustments			(541				3,621
Net unrealized (losses) gains on available-for-sale securities			(2,659				2,680
COMPREHENSIVE INCOME			42,863				28,851
EARNINGS PER SHARE
Basic			3.30				1.65
Diluted			3.24				1.60
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic			13,959				13,628
Diluted			14,197				14,112
CASH DIVIDENDS PER SHARE			0.500				0.375

Argan, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Dollars in thousands, except per share data)
		April 30,				January 31,
		2026				2026
		(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents			355,847				339,481
Investments			617,708				555,500
Accounts receivable, net			130,808				133,677
Contract assets			36,917				43,397
Other current assets			74,828				60,202
TOTAL CURRENT ASSETS			1,216,108				1,132,257
Property, plant and equipment, net			18,271				16,596
Goodwill			28,033				28,033
Intangible assets, net			1,375				1,450
Deferred taxes, net
Right-of-use and other assets			22,651				8,018
TOTAL ASSETS			1,286,438				1,186,354
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable			123,850				107,540
Accrued expenses			105,065				89,748
Contract liabilities			565,774				513,969
TOTAL CURRENT LIABILITIES			794,689				711,257
Deferred taxes, net			4,907				6,555
Noncurrent liabilities			13,331				6,280
TOTAL LIABILITIES			812,927				724,092
STOCKHOLDERS' EQUITY
Preferred stock, par value $0.10 per share 500,000 shares authorized; no shares issued and outstanding
Common stock, par value $0.15 per share 30,000,000 shares authorized; 15,828,289 shares issued; 14,020,427 and 13,950,712 shares outstanding at April 30, 2026 and January 31, 2026, respectively			2,374				2,374
Additional paid-in capital			163,233				167,234
Retained earnings			445,255				406,197
Treasury stock, at cost 1,807,862 and 1,877,577 shares at April 30, 2026 and January 31, 2026, respectively			(134,969				(114,361
Accumulated other comprehensive (loss) income			(2,382				818
TOTAL STOCKHOLDERS' EQUITY			473,511				462,262
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			1,286,438				1,186,354

Argan, Inc. and Subsidiaries
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations
(Dollars in thousands)
(Unaudited)
		Three Months Ended
		April 30,
		2026			2025
Revenues			290,954			193,660
Net income, as reported			46,063			22,550
Provision for income taxes			7,706			7,236
Depreciation			559			415
Amortization of intangible assets			75			98
EBITDA			54,403			30,299
Stock-based compensation expense			2,036			1,188
Adjusted EBITDA			56,439			31,487
Adjusted EBITDA margin			19.4			16.3

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Contacts:

Company Contact:
David Watson
301.315.0027

Investor Relations Contacts:
John Nesbett/Jennifer Belodeau
IMS Investor Relations
203.972.9200
[e-mail]