Key Takeaways
- AGX shares climbed approximately 10% in pre-market trading following Q4 EPS of $3.47, significantly 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 reached $9.74 compared to $6.15 in FY25; gross profit margin improved to 25% from 20.5%
- Contract backlog more than doubled to $2.9B from $1.4B a year prior following $2.5B in newly secured contracts
- Argan closed the fiscal year with $895M in cash reserves and maintains a debt-free balance sheet; FY27 revenue outlook of $415M–$440M exceeds the $385.68M consensus projection
Argan delivered fourth-quarter adjusted earnings per share of $3.47, substantially surpassing Wall Street’s $2.13 projection. The $1.34-per-share beat represents the type of outperformance that captures immediate market attention.
Quarterly revenue totaled $262.1 million, marking a 12.7% climb from the $232.5 million recorded in the comparable quarter last year. While the figure came in marginally below the $271 million projection, market participants clearly prioritized the earnings outperformance.
Gross profit margin strengthened to 25% during the quarter, up from 20.5% in the year-ago period. Net income totaled $49.2 million versus $31.4 million in the prior-year quarter.
CEO David Watson characterized the period as a “record fourth quarter” that concluded what he termed a year of robust operational execution. The full-year results supported that assessment.
For the complete fiscal year 2026, Argan recorded revenue of $944.6 million, reflecting an 8.1% year-over-year increase. Annual EPS totaled $9.74, up from $6.15 in FY25. EBITDA climbed to $162.8 million from $113.5 million in the previous fiscal year.
The most striking metric might be the contract backlog. It surged to roughly $2.9 billion as of January 31, 2026, compared to $1.4 billion twelve months earlier. This expansion followed the addition of $2.5 billion in new contract value throughout FY26.
Watson attributed the robust demand to AI data center construction activity, electrification trends, and the replacement needs of aging power infrastructure as primary catalysts behind the contract awards.
Financial Position and Shareholder Returns
Argan concluded the fiscal year with a robust liquidity profile. The company maintained $895 million in cash, cash equivalents, and investments, up from $525.1 million in the prior year. Net liquidity stood at $421 million.
The company carries zero debt obligations.
Argan also increased its quarterly dividend to $0.50 per share in FY26, marking the third consecutive annual increase.
A significant contributor to fourth-quarter profitability was reaching substantial completion ahead of schedule at the Trumbull Energy Center—a development that supported the quarter’s improved gross margin performance.
Fiscal 2027 Projections
For the coming fiscal year, Argan provided revenue guidance ranging from $415 million to $440 million. This outlook exceeds the analyst consensus estimate of $385.68 million.
Adjusted EBITDA for FY27 is projected between $0 and $10 million. CFO Baugher indicated it remains premature to provide specific guidance on FY27 gross margin expectations.
Management anticipates securing additional projects within the next 12 to 20 months.
AGX traded around $450 during pre-market hours on March 27, representing roughly a 10% session gain. The shares had already demonstrated momentum, climbing approximately 12.6% over the preceding month and about 3.15% during the past week.
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