Latest news with #ArganInc
Yahoo
24-07-2025
- Business
- Yahoo
Argan, Inc. (AGX): A Bull Case Theory
We came across a bullish thesis on Argan, Inc. on Beating The Tide: Stock Picks That Outperform's Substack by George Atuan, CFA. In this article, we will summarize the bulls' thesis on AGX. Argan, Inc.'s share was trading at $203.84 as of July 17th. AGX's trailing P/E was 28.43 according to Yahoo Finance. A portrait of a woman entrepreneur in a clean energy plant, an inspiration for others. Argan Inc. (AGX), a specialized engineering, procurement, and construction (EPC) contractor, has delivered exceptional results amid accelerating power infrastructure investment, driven by rising electricity demand from data centers, manufacturing reshoring, and renewables integration. The company's backlog has surged to a record $1.9 billion, providing multi-year revenue visibility, with large-scale projects like the 1.2 GW Sandow gas plant in Texas and a series of high-margin gas and battery storage contracts. Argan's unique positioning lies in its ability to handle multi-technology projects—gas-fired plants, battery storage, and renewables—allowing it to market itself as 'energy transition ready.' Execution remains a key strength, with gross margins sustaining in the high teens and EBITDA margins trending above 15%, supported by a selective bidding approach and operational discipline. Its fortress balance sheet, with over $540 million in cash and no debt, underpins capital returns through buybacks and dividends while generating significant interest income, further boosting free cash flow. A refreshed DCF model values AGX at $290 per share, up from $278, implying roughly 32% upside from current levels, with upside scenarios reaching $360 if backlog growth persists. However, the premium valuation (~33x forward P/E) leaves less room for error, as execution risks, project lumpiness, and competitive pressures remain key sensitivities. Heavy insider selling over the past year signals tempered management sentiment but coincides with a period of record performance rather than operational weakness. Overall, AGX remains a high-quality play on the long-term rebuild of U.S. power infrastructure, offering resilient growth, strong cash generation, and an attractive risk/reward profile despite elevated expectations. Previously, we covered a bullish thesis on EMCOR Group, Inc. (EME) by CompanyCharts in April 2025, which highlighted its U.S.-centric operations, fixed-price contracts, and strong earnings growth protecting margins amid trade volatility. The stock has appreciated about 46.2% since the thesis played out. It still stands, while George Atuan, CFA shares a similar view, emphasizing Argan, Inc.'s record backlog and energy transition focus. Argan, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held AGX at the end of the first quarter which was 33 in the previous quarter. While we acknowledge the potential of AGX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-07-2025
- Business
- Yahoo
Argan Gains Analyst Praise While Executives Cash Out After Record Quarter
Argan, Inc. (NYSE:AGX) is one of the . Amid strong quarter results and raised price targets, the company witnessed major sell-offs by its top executives in June. A worker inspecting a newly built bridge, symbolic of the company's engineering prowess. Based in Maryland, the engineering, procurement, and construction holding company, Argan, Inc. (NYSE:AGX) engages in its business through subsidiaries like Gemma Power Systems. Specializing in power infrastructure, including natural gas and clean-energy plant construction, the company benefits from a robust project pipeline amid rising demand. On June 4, 2025, the company reported its first quarter fiscal 2026 results, where it highlighted a 23% year-over-year increase in consolidated revenue reaching $193.7 million. Argan, Inc. (NYSE:AGX) also reported a record backlog of $1.9 billion as of April 30, 2025. On June 5, 2025, while maintaining a Buy rating on the stock, Lake Street raised the price target on Argan, Inc. (NYSE:AGX) from $150 to $236, signaling immense confidence in the stock's potential. Following the target price increase, the company's top executives, including the President, CEO, and Directors, sold a total of 118,000 shares in a total transaction valued at more than $25.58 million between June 11 and June 30, 2025. Argan, Inc. (NYSE:AGX) keeps risk in check with a 0.58 beta, while the next five years could bring 17% EPS growth, suggesting a potential buy. While we acknowledge the potential of AGX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Metal Stocks with Insider Buying in 2025 and 10 Energy Stocks with Insider Buying in 2025 Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-06-2025
- Business
- Yahoo
Argan, Inc. Declares Regular Quarterly Cash Dividend of $0.375 Per Common Share
ARLINGTON, Va., June 17, 2025--(BUSINESS WIRE)--Argan, Inc. (NYSE: AGX) ("Argan" or the "Company") today announces that its Board of Directors (the "Board") declared a regular quarterly cash dividend in the amount of $0.375 per share of common stock. The dividend will be payable on July 31, 2025, to stockholders of record at the close of business on July 23, 2025. David Watson, President and Chief Executive Officer of Argan commented, "Argan has paid dividends consistently since 2011 and has returned over $217 million to shareholders during that time. Our regular quarterly dividend has grown from $0.25 per share to $0.375 per share over the last two years, representing a 50% increase. This growth reflects Argan's strong balance sheet, confidence in future earnings growth, and long-term commitment to returning capital to shareholders. In addition, I want to thank Rainer Bosselmann, Argan's founder and former Chief Executive Officer and Chairman of the Board, who has completed his final term as a director. Rainer's vision and entrepreneurial spirit laid the groundwork for the Company's sustained performance and long-term value creation. We are deeply grateful for his enduring contributions to Argan's success and culture." About Argan, Inc. 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 telecommunications infrastructure services. 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, 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. View source version on Contacts Company Contact: David Watson301.315.0027 Investor Relations Contacts:John Nesbett/Jennifer BelodeauIMS Investor Relations203.972.9200argan@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-06-2025
- Business
- Yahoo
Argan Inc (AGX) Q1 2026 Earnings Call Highlights: Record Backlog and Strong Revenue Growth
Revenue: $193.7 million, a 23% increase year-over-year. Gross Margin: 19%, up from 11.4% in the previous year. Net Income: $22.6 million, or $1.60 per diluted share, compared to $7.9 million, or $0.58 per diluted share, last year. EBITDA: $30.3 million, representing 15.6% of revenue, up from $11.9 million, or 7.5% of revenue, last year. Backlog: Record $1.9 billion as of April 30, 2025. Cash and Investments: $546.5 million with net liquidity of $315 million and no debt. Dividend: Quarterly dividend of $0.375 per share. Share Repurchase: Approximately 100,000 shares repurchased for $12.9 million; program increased to $150 million. Power Industry Services Revenue: Increased 45% to $160 million, representing 83% of first-quarter revenues. Industrial Construction Services Revenue: Decreased to $29 million from $44 million, contributing 15% of first-quarter revenues. Telecommunications Infrastructure Services Revenue: Contributed 2% of first-quarter revenues. Release Date: June 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Argan Inc (NYSE:AGX) reported a 23% increase in consolidated revenue to $193.7 million for the first quarter of fiscal 2026. The company achieved a gross margin of 19%, reflecting strong execution and a favorable mix of projects. Argan Inc (NYSE:AGX) reported a record backlog of $1.9 billion as of April 30, 2025, indicating strong future project opportunities. The company's balance sheet remains robust with $546.5 million in cash and investments, and no debt. Argan Inc (NYSE:AGX) increased its quarterly dividend to $0.375 per share and expanded its share repurchase program to $150 million, demonstrating a commitment to returning capital to shareholders. The Industrial Construction Services segment experienced a revenue decrease to $29 million from $44 million in the first quarter of fiscal 2025 due to project timing. The Telecommunications Infrastructure Services segment contributed only 2% of first-quarter revenues, indicating limited growth in this area. Gross margins for the Industrial Construction Services segment decreased to 10.8% from 13.3% in the previous year. The timeline for completing gas-fired power plant projects has extended from 2.5-3 years to 3-4 years, primarily due to supply chain issues. Selling, general, and administrative expenses increased to $12.5 million, although they decreased as a percentage of revenues. Q: Can you provide an update on the pipeline visibility for the rest of the year, especially after the Sandow Lakes project award? A: The pipeline remains strong, and we are optimistic about adding to our backlog, which was $1.9 billion as of April 30. We expect to add several power industrial jobs over the next six months, potentially pushing our backlog significantly over $2 billion. However, project start times are not always within our control, but demand is expected to remain strong for the next decade. Q: What is the potential for backlog growth given your current capacity and project pipeline? A: We anticipate our backlog to grow significantly over $2 billion. We have the capacity to handle multiple projects, including renewable and gas jobs. We recently started several new projects, such as a 700-megawatt power plant, and expect to add more, which should increase our backlog substantially. Q: How does the outlook for the Industrial Business segment look, and what are the revenue trends? A: We anticipated a slight contraction in the past quarter, but we are seeing strong interest in TRC due to increased onshoring of US manufacturing. The TRC backlog increased to $91 million, and we expect revenues to increase significantly over the next several quarters. Q: Can you discuss the recent gross margins and the factors contributing to their increase? A: The recent gross margins reflect strong execution and a changing mix of projects and contract types. We are in a competitive but favorable market and expect to exceed last year's margin profile as we progress through the year. Q: Is the extended project timeline from 2.5-3 years to 3-4 years a permanent change, and what are the contributing factors? A: The extended timeline is primarily supply chain driven. If supply chain issues are resolved, there will be a push for quicker project completion. Currently, the timeline is typically 3-4 years, although smaller jobs may be shorter. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-06-2025
- Business
- Yahoo
Argan Inc (AGX) Q1 2026 Earnings Call Highlights: Record Backlog and Strong Revenue Growth
Revenue: $193.7 million, a 23% increase year-over-year. Gross Margin: 19%, up from 11.4% in the previous year. Net Income: $22.6 million, or $1.60 per diluted share, compared to $7.9 million, or $0.58 per diluted share, last year. EBITDA: $30.3 million, representing 15.6% of revenue, up from $11.9 million, or 7.5% of revenue, last year. Backlog: Record $1.9 billion as of April 30, 2025. Cash and Investments: $546.5 million with net liquidity of $315 million and no debt. Dividend: Quarterly dividend of $0.375 per share. Share Repurchase: Approximately 100,000 shares repurchased for $12.9 million; program increased to $150 million. Power Industry Services Revenue: Increased 45% to $160 million, representing 83% of first-quarter revenues. Industrial Construction Services Revenue: Decreased to $29 million from $44 million, contributing 15% of first-quarter revenues. Telecommunications Infrastructure Services Revenue: Contributed 2% of first-quarter revenues. Release Date: June 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Argan Inc (NYSE:AGX) reported a 23% increase in consolidated revenue to $193.7 million for the first quarter of fiscal 2026. The company achieved a gross margin of 19%, reflecting strong execution and a favorable mix of projects. Argan Inc (NYSE:AGX) reported a record backlog of $1.9 billion as of April 30, 2025, indicating strong future project opportunities. The company's balance sheet remains robust with $546.5 million in cash and investments, and no debt. Argan Inc (NYSE:AGX) increased its quarterly dividend to $0.375 per share and expanded its share repurchase program to $150 million, demonstrating a commitment to returning capital to shareholders. The Industrial Construction Services segment experienced a revenue decrease to $29 million from $44 million in the first quarter of fiscal 2025 due to project timing. The Telecommunications Infrastructure Services segment contributed only 2% of first-quarter revenues, indicating limited growth in this area. Gross margins for the Industrial Construction Services segment decreased to 10.8% from 13.3% in the previous year. The timeline for completing gas-fired power plant projects has extended from 2.5-3 years to 3-4 years, primarily due to supply chain issues. Selling, general, and administrative expenses increased to $12.5 million, although they decreased as a percentage of revenues. Q: Can you provide an update on the pipeline visibility for the rest of the year, especially after the Sandow Lakes project award? A: The pipeline remains strong, and we are optimistic about adding to our backlog, which was $1.9 billion as of April 30. We expect to add several power industrial jobs over the next six months, potentially pushing our backlog significantly over $2 billion. However, project start times are not always within our control, but demand is expected to remain strong for the next decade. Q: What is the potential for backlog growth given your current capacity and project pipeline? A: We anticipate our backlog to grow significantly over $2 billion. We have the capacity to handle multiple projects, including renewable and gas jobs. We recently started several new projects, such as a 700-megawatt power plant, and expect to add more, which should increase our backlog substantially. Q: How does the outlook for the Industrial Business segment look, and what are the revenue trends? A: We anticipated a slight contraction in the past quarter, but we are seeing strong interest in TRC due to increased onshoring of US manufacturing. The TRC backlog increased to $91 million, and we expect revenues to increase significantly over the next several quarters. Q: Can you discuss the recent gross margins and the factors contributing to their increase? A: The recent gross margins reflect strong execution and a changing mix of projects and contract types. We are in a competitive but favorable market and expect to exceed last year's margin profile as we progress through the year. Q: Is the extended project timeline from 2.5-3 years to 3-4 years a permanent change, and what are the contributing factors? A: The extended timeline is primarily supply chain driven. If supply chain issues are resolved, there will be a push for quicker project completion. Currently, the timeline is typically 3-4 years, although smaller jobs may be shorter. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
