Argan Reports Record Q2 Earnings with Strong Revenue Growth
Argan Inc. (NYSE:AGX) reported record second-quarter results for fiscal 2027, driven by a significant increase in revenue and profitability across its segments. The company's revenue rose 62% year-over-year to $384 million, with net income reaching $53.3 million and adjusted EBITDA climbing to $70 million. Strong performance was led by the power segment, which accounted for 78% of total revenue due to increased activity in natural gas and renewable projects. Despite these gains, Argan's consolidated backlog declined to approximately $2.5 billion, with management cautioning that project mix could limit sequential growth in Q3. The company maintained a strong financial position, holding about $1 billion in cash and investments along with $440 million in net liquidity and no debt. Shareholders received $51.7 million in returns through dividends and share repurchases during the first half of fiscal 2027. CEO David Watson highlighted operational momentum across all segments, noting significant revenue growth from power (up 53%), industrial (up 111%), and Teledata (up 40%). CFO Josh Baugher attributed improved gross margins to better project execution in the power segment. However, he noted that consolidated margins have declined sequentially due to changes in project mix.
Topics: ebitda financial_results revenue_growth shareholder_returns