Argan, Inc. (AGX) Earnings
Argan, Inc. is expected to report next earnings on December 3, 2026 (in NaN days), with a consensus EPS estimate of $2.95. AGX has beaten EPS estimates in 10 of its last 12 reported quarters (average surprise +34.4% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Sep 2, 2026 | $2.67 | $3.76 | +41.0% | $384M | +28.4% |
| Jun 4, 2026 | $2.31 | $3.24 | +40.0% | $291M | +14.7% |
| Mar 26, 2026 | $2.03 | $3.47 | +71.0% | $262M | +2.5% |
| Dec 4, 2025 | $2.11 | $2.17 | +2.6% | $251M | -6.0% |
| Sep 4, 2025 | $2.02 | $2.50 | +23.9% | $238M | -3.9% |
| Jun 4, 2025 | $1.10 | $1.60 | +45.7% | $194M | -1.2% |
| Mar 27, 2025 | $1.16 | $2.22 | +91.2% | $232M | +16.1% |
| Dec 5, 2024 | $1.24 | $2.00 | +60.8% | $257M | +13.5% |
| Sep 5, 2024 | $0.98 | $1.31 | +34.1% | $227M | +23.3% |
| Jun 6, 2024 | $0.51 | $0.58 | +13.1% | $158M | +17.2% |
| Dec 6, 2023 | $0.88 | $0.40 | -54.3% | $164M | +2.6% |
| Sep 6, 2023 | $0.75 | $0.94 | +25.3% | $141M | +1.6% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2027 · September 2, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Record Financials: Consolidated revenue reached a record $384 million, driven by activity ramps in the Power segment. Net income hit a record $53.3 million ($3.76 diluted share), and Adjusted EBITDA was $70 million (18.2% margin). - Strategic Acquisitions: Completed the acquisition of Valcor Communications to strengthen the Teledata segment, gaining presence in New England and access to Fortune 500 clients in technology, defense, and aerospace. - Operational Execution: Achieved early substantial completion on major Midwest solar projects. Construction is ramping on multiple natural gas projects in Texas, including a 1.2 GW plant for SLEC and other combined cycle facilities. - Capacity Expansion: Building a new fabrication facility in North Carolina to support industrial demand, particularly data center projects. The facility is expected to be completed in Q3 and contribute ~$10+ million in quarterly revenue starting late this year. - Backlog Strength: Consolidated backlog stands at $2.5 billion. Approximately 80% of the backlog consists of natural gas projects, with significant work in complex combined cycles. The company aims to execute 10-12 jobs simultaneously. - Capital Allocation: Maintained a strong balance sheet with ~$1 billion in cash/investments and no debt. Returned $51.7 million to shareholders via dividends and buybacks in H1 FY2027. Dividend increased to $0.50/share annually ($2.00 run rate). Buyback authorization raised to $200 million through Jan 2030.
Guidance
- Full Year Revenue: Expects Fiscal Year 2027 revenue to be significantly higher than Fiscal Year 2026. - Quarterly Sequencing: Anticipates limited sequential growth in Q3 compared to Q2 due to pull-forward effects and decreased industrial revenues relative to Q2. - Project Additions: Expects to add a handful of new projects over the next 7-15 months, primarily complex combined cycle natural gas projects. - Margin Expectations: Power segment margins are expected to remain healthy (>22%). Industrial margins may run below historical norms for one or two quarters as current underperforming projects wind down.
Segment performance
Power Segment: Revenue of $301 million (78% of consolidated revenue), representing a 53% year-over-year increase. Pre-tax book income was $66 million with a gross margin of 22.4%. Industrial Segment: Revenue of $76 million (20% of consolidated revenue), an 111% year-over-year increase. Pre-tax book income was approximately $4 million with a gross margin of 7.3%. Teledata Segment: Revenue of $7 million (2% of consolidated revenue), a 40% year-over-year increase. Gross margin was 16.6%.
Risks & headwinds
- Industrial Margin Pressure: Certain non-data-center industrial projects experienced cost overruns where estimates to complete exceeded initial estimates, impacting gross margins. These are expected to resolve over the next six months. - Regulatory and Political Uncertainty: While demand remains strong, there is regulatory back-and-forth regarding data center development (e.g., Texas grid requests) which could impact project timelines, though developer behavior has not yet changed materially. - Integration Risk: Potential risks associated with integrating Valcor Communications and executing the Teledata strategy. - Execution Constraints: Ability to hire and train skilled labor (GEMMA) to maintain capacity for 10-12 simultaneous large-scale projects.
Analyst Q&A
Q: Analyst asked about the nature of the project pipeline and whether the near-term outlook is conservative given recent commentary. /
A: Management reiterated a conservative approach to backlog prediction, expecting to add 'a handful' of new projects over the next 7-15 months. They noted that while they had no major power additions this quarter, they offset burn with $260M+ in scope increases on existing jobs and smaller new awards. Backlog remains above $2.5 billion, with natural gas combined cycles dominating the near-to-mid term mix.
Q: Analyst inquired about the revenue capacity and market focus of the new North Carolina fabrication facility. /
A: CEO David Watson stated the facility is on track for Q3 completion and is currently geared toward supporting a $125 million data center project involving thermal expansion tanks. He expects the facility to generate meaningful revenue uplift for the Industrial group later this year and into next year, potentially adding over $10 million in quarterly revenue, positioning the company for broader data center and power market opportunities.
Q: Analyst questioned the low Industrial gross margin (7.3%) and whether it reflects expansion costs or specific project issues. /
A: Management clarified that the low margin was not due to expansion costs but rather two unrelated projects where 'estimates to complete' exceeded initial projections. These projects are winding down over the next six months, and margins are expected to normalize after one or two quarters. The company remains focused on selecting profitable projects, particularly in the data center sector.
Q: Analyst asked if political headwinds, such as Texas halting data centers pending grid stability, are impacting Argan's business. /
A: CEO Watson reported no change in developer behavior despite news headlines. Developers continue to pursue necessary milestones like PPAs, permits, and financing. The urgency to build power infrastructure remains high, and Argan continues to engage with developers on early activities, anticipating new project starts in the coming months.
Q: Analyst sought clarity on pricing trends within the GEMMA business and how Argan manages inflation and labor costs. /
A: Management emphasized that pricing depends heavily on contract type, location, and labor availability. Argan typically uses fixed-price contracts but incorporates inflation and risk factors into their bids. With Power segment margins consistently north of 22%, management believes their pricing model is robust and reflective of current market conditions, allowing them to maintain profitability despite industry-wide cost pressures.