Key Highlights
- AGX shares rallied approximately 10% in pre-market trading following Q4 EPS of $3.47, exceeding the $2.13 consensus forecast by $1.34
- Quarterly revenue reached $262.1M, representing a 12.7% year-over-year increase, though marginally under the $271M projection
- Fiscal year 2026 EPS climbed to $9.74 compared to $6.15 in FY25; gross margin improved to 25% versus 20.5%
- Contract backlog expanded dramatically to $2.9B from $1.4B year-over-year following $2.5B in fresh contract awards
- Company closed the fiscal year holding $895M in cash with no outstanding debt; FY27 revenue forecast of $415M–$440M surpassed the $385.68M analyst consensus
Argan delivered fourth-quarter adjusted earnings per share of $3.47, significantly surpassing Wall Street’s $2.13 projection. The $1.34-per-share outperformance represents the type of substantial beat that captures market attention.
Quarterly revenue totaled $262.1 million, marking a 12.7% increase from the $232.5 million recorded in the comparable year-ago period. While the figure came in below the anticipated $271 million, market participants clearly prioritized the earnings outperformance.
The company’s gross profit margin widened to 25% during the fourth quarter, improving from 20.5% in the previous year’s corresponding period. Net income totaled $49.2 million versus $31.4 million in the prior-year quarter.
Chief Executive David Watson characterized the results as a “record fourth quarter” that concluded what he termed a year marked by robust operational performance. The full-year metrics supported his assessment.
For fiscal 2026, Argan posted revenue of $944.6 million, reflecting an 8.1% year-over-year advancement. Annual EPS reached $9.74, climbing from $6.15 in FY25. EBITDA increased to $162.8 million compared to $113.5 million in the previous fiscal year.
The most impressive metric may be the contract backlog. It surged to approximately $2.9 billion as of January 31, 2026, more than doubling from $1.4 billion twelve months earlier. This substantial growth followed the company securing $2.5 billion in new contract value throughout FY26.
Watson attributed the contract momentum to robust demand stemming from AI data center development, ongoing electrification initiatives, and the need to replace deteriorating power generation infrastructure.
Financial Position and Shareholder Returns
Argan concluded the fiscal year maintaining a robust liquidity profile. The company possessed $895 million in cash, cash equivalents, and investment holdings, increasing from $525.1 million a year prior. Net liquidity stood at $421 million.
The balance sheet carries zero debt obligations.
The company also increased its quarterly dividend distribution to $0.50 per share during FY26, representing the third straight year of dividend enhancements.
A significant factor contributing to fourth-quarter profitability was reaching substantial completion ahead of schedule at the Trumbull Energy Center — a benchmark achievement that provided meaningful support to quarterly gross margin performance.
Fiscal 2027 Projections
For the year ahead, Argan provided FY27 revenue guidance spanning $415 million to $440 million. This forecast range exceeds the Street consensus estimate of $385.68 million.
Adjusted EBITDA for FY27 is projected within a range of $0 to $10 million. Chief Financial Officer Baugher indicated that providing precise visibility into FY27 gross margin expectations remains premature at this stage.
Management anticipates securing additional project awards throughout the next 12 to 20 months.
AGX shares were changing hands near $450 during pre-market hours on March 27, representing an approximate 10% gain for the session. The stock had already demonstrated positive momentum, advancing roughly 12.6% over the preceding month and approximately 3.15% during the past week.
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