Argan Reports Record Q2 Earnings Amid Strong Revenue Growth
Argan (AGX) reported record second-quarter earnings for fiscal year 2027, driven by a significant increase in revenue to $384.0 million — up 61.5% from the previous year due largely to construction activity ramp-ups in its Power segment. The company's net income reached $53.3 million or $3.76 per diluted share and adjusted EBITDA hit $70.0 million, with a margin of 18.2%. The Industrial Segment saw an impressive revenue increase of 111%, but gross margins fell short due to revised cost estimates on two projects. The Power segment accounted for the majority (78%) of total revenue at $301 million and grew by 53% year-over-year, with a strong margin performance. Argan also expanded its Teledata services through an acquisition and is building a new fabrication facility in North Carolina to support data center projects. The company's consolidated backlog stands at $2.5 billion — down from the start of the fiscal year due to project burn and timing delays on contract awards. Argan maintains strong liquidity with cash and investments totaling $1.03 billion, supporting both organic growth and potential acquisitions. Shareholders received dividends amounting to an annual run rate of $2 per share, while capital returns reached $51.7 million in the first half of the year.
Tickers: $AGX
Topics: backlog ebitda liquidity net_income revenue segment_performance