Argan Revenue Growth Accelerates to 61.5% at $384 Million
The power and industrial construction firm posted record net income of $53.3 million, or $3.76 a share, in the quarter ended July 31, 2026.
Argan, Inc. (AGX), a provider of construction and related services to the power industry, reported record revenue of $384.0 million for the quarter ended July 31, 2026, up 61.5% from $237.7 million a year earlier. That year-over-year pace quickened from the 50.2% increase recorded in the immediately preceding quarter.
The Arlington, Virginia-based company said the increase reflected higher revenues across all of its business segments. President and Chief Executive Officer David Watson said the Power segment “continued to execute extremely well,” growing revenue 53% year over year to $301 million at a 22% gross margin.
Consolidated gross profit was $74.2 million, or 19.3% of revenue, compared with $44.3 million, or 18.6%, a year earlier. The year-over-year rise in the gross-profit percentage was driven primarily by a changing mix of projects and contract types and strong execution in Power, and was partially offset by decreased performance on certain projects in the Industrial and Teledata segments. Sequentially, the gross margin contracted to 19.3% from 21.0% in the quarter ended April 30, 2026.
Net income reached a record $53.3 million, or $3.76 a share on a diluted basis, versus $35.3 million, or $2.50 a share, a year earlier. Adjusted EBITDA was a record $70.0 million, or an 18.2% margin, compared with $38.5 million, or 16.2%, a year earlier. Adjusted EBITDA margin compressed from 19.4% in the prior quarter.
Selling, general and administrative expenses were $17.4 million, or 4.5% of revenue, versus $14.2 million, or 6.0%, a year earlier. Other income, net, was $10.1 million, primarily reflecting investment income, compared with $5.6 million a year earlier.
Cash, cash equivalents and investments were $1.03 billion at July 31, 2026, up from $895.0 million at January 31, 2026. Net liquidity was $440.4 million. The company had no debt. Share-repurchase treasury stock at cost was $144.9 million. The quarterly cash dividend remained $0.500 a share.
Project backlog was approximately $2.5 billion at July 31, 2026, compared with approximately $2.9 billion at January 31, 2026.
Following the close of the quarter, Argan achieved final completion on the remaining project of its Midwest Solar and Battery Projects. In Industrial, construction of a new fabrication facility continues as planned, with expected completion next quarter; the plant will support heightened demand for fabrication of vessels for data centers. In Teledata, Argan closed the acquisition of ValCor Communications, a Connecticut-based provider of installation and repair services for information, communication, and data networks, increasing geographic presence and expanding the segment’s client base to defense, aerospace, and technology clients in the region.
Watson said the company is “energized by the opportunities we are seeing across all three of our business segments” and that its diverse capabilities, execution record, and balance sheet position it to benefit from the current demand environment.
For the six months ended July 31, 2026, consolidated revenues were $674.9 million, up 56.5% from $431.4 million a year earlier. Net income for that six-month period was $99.4 million, or $7.01 a share. Adjusted EBITDA was $126.5 million.