Argan (AGX) quarter year Argan Financial Results Summary
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Argan, Inc. (AGX) Q2 2027: Record Revenue and Net Income — Strong Performance
Argan, Inc. (NYSE: AGX) reported a remarkable second quarter for fiscal year 2027, showcasing significant growth compared to the prior year. The company achieved consolidated revenues of $384 million, marking an increase of $146.2 million or 61.5% from $237.7 million in the same quarter last year. Additionally, net income reached a record $53.3 million, up $18.0 million or 51.1% from $35.3 million in Q2 2026.
This quarter's performance is undoubtedly positive for shareholders, reflecting robust operational execution and strong demand across all business segments. The substantial revenue and net income growth indicate that Argan is effectively capitalizing on market opportunities, particularly in its Power segment, which saw a 53% year-over-year revenue increase.
Key Financial Metrics
- Revenues: $384 million (up $146.2 million or +61.5% YoY)
- Gross Profit: $74.2 million (up $29.9 million or +67.5% YoY)
- Gross Margin: 19.3% (up from 18.6%)
- Net Income: $53.3 million (up $18.0 million or +51.1% YoY)
- Diluted EPS: $3.76 (up from $2.50)
- Adjusted EBITDA: $70.0 million (up $31.5 million or +81.9% YoY)
- Adjusted EBITDA Margin: 18.2% (up from 16.2%)
- Cash Dividends: $0.500 per share (up from $0.375)
Operational Highlights
- The Power segment generated $301 million in revenue, driven by increased construction activities.
- Gross profit margin improved to 19.3%, attributed to a favorable project mix and strong execution in the Power segment.
- Selling, general, and administrative expenses were $17.4 million, representing 4.5% of revenues, down from 6.0% in the prior year.
- The company reported $1.03 billion in cash, cash equivalents, and investments, up from $895 million at the beginning of the year, indicating strong cash flow generation.
Shareholder Returns and Guidance
Argan has increased its cash dividend to $0.500 per share, up from $0.375 in the prior year, reflecting the company's commitment to returning value to shareholders. The company also continues to maintain a strong balance sheet with no debt and a net liquidity of $440.4 million.
Looking ahead, investors should monitor the completion of the new fabrication facility in the Industrial segment, which is expected to support increased demand for data center fabrication. Additionally, the successful integration of the recently acquired ValCor Communications in the Teledata segment could further enhance Argan's market position.
Conclusion
Overall, Argan's second quarter results for fiscal 2027 demonstrate a strong operational performance and a positive outlook for future growth. The record revenue and net income figures, coupled with an increased dividend, suggest that the company is well-positioned to capitalize on ongoing market opportunities. Investors should keep an eye on the upcoming developments in the Industrial segment and the integration of new acquisitions as potential catalysts for continued growth.
Note: The following tables contain amounts in thousands/millions.
| Three Months Ended July 31, 2026 | Three Months Ended July 31, 2025 | Six Months Ended July 31, 2026 | Six Months Ended July 31, 2025 |
|---|---|---|---|
| $383,700 | $237,700 | $674,700 | $431,400 |
| $309,500 | $193,500 | $539,500 | $350,200 |
| $74,200 | $44,200 | $135,200 | $81,130 |
| $17,400 | $14,200 | $33,100 | $26,733 |
| $56,800 | $30,000 | $102,000 | $54,397 |
| $10,000 | $5,581 | $18,400 | $11,025 |
| $66,800 | $35,600 | $120,400 | $65,422 |
| $13,500 | $361 | $21,200 | $7,597 |
| $53,300 | $35,200 | $99,300 | $57,825 |
| $-267 | $-251 | $-808 | $3,370 |
| $-4,500 | $-1,000 | $-7,200 | $1,598 |
| $48,400 | $33,900 | $91,300 | $62,793 |
| $3.80 | $2.57 | $7.10 | $4.23 |
| $3.76 | $2.50 | $7.01 | $4.09 |
| 14,000 | 13,700 | 13,900 | 13,680 |
| 14,100 | 14,100 | 14,100 | 14,122 |
| $0.500 | $0.375 | $1.000 | $0.750 |
| July 31, 2026 | January 31, 2026 |
|---|---|
| $364,481 | $339,481 |
| $663,965 | $555,500 |
| $180,356 | $133,677 |
| $35,713 | $43,397 |
| $73,955 | $60,202 |
| $1,318,470 | $1,132,257 |
| $22,797 | $16,596 |
| $30,670 | $28,033 |
| $6,030 | $1,450 |
| $23,003 | $8,018 |
| $1,400,970 | $1,186,354 |
| $115,212 | $107,540 |
| $135,878 | $89,748 |
| $627,020 | $513,969 |
| $878,110 | $711,257 |
| $3,061 | $6,555 |
| $12,960 | $6,280 |
| $894,131 | $724,092 |
| $2,374 | $2,374 |
| $165,039 | $167,234 |
| $491,539 | $406,197 |
| $-144,914 | $-114,361 |
| $-7,199 | $818 |
| $506,839 | $462,262 |
| $1,400,970 | $1,186,354 |
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