Latest news with #ArganInc
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10 hours ago
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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
5 days ago
- 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
Yahoo
5 days ago
- Business
- Yahoo
Argan: Fiscal Q1 Earnings Snapshot
ROCKVILLE, Md. (AP) — ROCKVILLE, Md. (AP) — Argan Inc. (AGX) on Wednesday reported fiscal first-quarter earnings of $22.6 million. The Rockville, Maryland-based company said it had profit of $1.60 per share. The builder of energy plants posted revenue of $193.7 million in the period. Argan shares have climbed 58% since the beginning of the year. In the final minutes of trading on Wednesday, shares hit $216.60, more than tripling in the last 12 months. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on AGX at
Yahoo
04-04-2025
- Business
- Yahoo
Is Argan Inc. (AGX) the Best Engineering Stock to Invest in Now?
We recently published a list of . In this article, we are going to take a look at where Argan Inc. (NYSE:AGX) stands against other best engineering stocks to invest in now. The global engineering services market was valued at $3.26 trillion in 2023, as reported by Grand View Research. It's projected to grow at a CAGR of 5.5% from 2024 to 2030, due to several driving factors. Technological advancements, particularly the integration of automation, AI, and IoT, are dramatically enhancing productivity and operational efficiency. Simultaneously, rapid urbanization and substantial government investments are driving increased infrastructure development worldwide. Stringent environmental regulations are also forcing an emphasis on sustainable solutions, which further propels this market expansion. According to ALLPLAN, the architecture, engineering, and construction (AEC) industry collectively is undergoing a fundamental shift, with sustainability transitioning from an optional consideration to an essential imperative. As the urgency of climate change intensifies, the built environment faces increasing pressure to minimize its environmental impact and contribute to global net-zero targets. The engineering industry is actively exploring and implementing innovative sustainable solutions. The adoption of green building materials, such as recycled aggregates and low-carbon concrete, is gaining traction as a means of reducing environmental footprints and promoting circular construction principles. Energy-efficient designs that incorporate passive strategies and renewable energy systems are becoming standard practice. The rise of smart cities, which are powered by IoT and AI, further underscores the industry's commitment to urban sustainability. Technology is pivotal for driving sustainable practices. Building Information Modeling (BIM) and Digital Twins empower engineering teams to optimize designs, reduce material waste, and enhance operational efficiency, which leads to more sustainable project outcomes. Automation and prefabrication are reshaping construction methodologies by minimizing both material waste and energy consumption. Real-time monitoring systems, which use IoT and AI, provide critical data for informed decision-making. Achieving sustainability in engineering projects necessitates a proactive and collaborative approach. Lifecycle assessments, localized material sourcing, and robust monitoring systems are essential engineering strategies. By embracing principles of technological innovation and collaborative engineering practices, engineers are mitigating the environmental impact of their projects and creating more resilient and sustainable infrastructure. We used the Finviz stock screener to compile an initial list of top engineering stocks. We then selected 11 engineering stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database which tracks the moves of over 900 elite money managers. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A worker inspecting a newly built bridge, symbolic of the company's engineering prowess. Number of Hedge Fund Holders: 33 Argan Inc. (NYSE:AGX) delivers specialized engineering and construction solutions that are focused on the power generation sector. This includes large-scale energy projects and alternative energy facilities. It also provides industrial construction and telecom infrastructure services which encompass underground and aerial cabling for communication and power networks. The company's Power Industry Services segment is focused on the engineering and construction of power facilities. It saw a 65% year-over-year revenue surge to $173.8 million in FQ2 2025 and accounted for 77% of the company's total quarterly revenue. This growth was driven by projects like the 950-megawatt natural gas-fired power plant under the name of Trumbull Energy Center and the 405-megawatt solar field. The segment's project backlog includes $570 million in renewable projects, which represents 91% of the current backlog that supports low or zero carbon emissions. Argan Inc. (NYSE:AGX) anticipates growth in the Power Industry Services segment due to the increasing energy demand. The company is actively pursuing new projects using its expertise in complex power facility construction. Overall, AGX ranks 10th on our list of best engineering stocks to invest in now. While we acknowledge the growth potential of AGX, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AGX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
