Argan, Inc. Reports Record-Breaking Second Quarter as Company Continues to Deliver on Operational Strength and Growth
Argan, Inc., a leading provider of power and industrial services, has announced record-breaking results for the second quarter of fiscal year 2027 ended July 31, 2026. The company's strong performance was driven by significant revenue growth across all operating segments, with consolidated revenue reaching $384 million for the quarter.
According to David Watson, CEO of Argan, "Our power and industrial segments delivered substantial revenue growth of 53% and 111%, respectively, for the quarter, with Teledata revenue growing 40%." The company's power segment, which builds all types of power facilities including thermal and renewable energy systems, contributed $301 million or 78% of total revenue in the second quarter. This represents a 53% increase from the same period last year.
The industrial segment, which provides field services supporting new plant construction and additions for industrial facilities, also reported significant growth, with revenue increasing by 111% to $76 million in the second quarter. This represents a substantial contribution of 20% to consolidated revenue. The company's backlog for the industrial segment stood at $210 million at July 31, 2026, indicating strong demand for its services.
The Teledata segment, which provides installation and repair services for information, communication, and data networks, also reported a significant increase in revenue, growing 40% to $7 million in the second quarter. This represents a 2% contribution to consolidated revenue.
Argan's CEO, David Watson, highlighted the company's operational strength across all business segments during the second quarter. He stated that "each of our operating segments recorded substantially improved revenue, contributing to our record consolidated revenue." The company's strong balance sheet, with approximately $1 billion of cash and investments, net liquidity of $440 million, and no debt at July 31, 2026, also provided a solid foundation for its continued growth.
The company's commitment to returning capital to shareholders was evident through the payment of a quarterly dividend of $0.50 per share, which is $2 per share on an annual basis.
Argan's acquisition of ValCor Communications at the end of the quarter added strength to its Teledata segment, providing a presence in New England and bringing a client base of Fortune 500 technology, defense, and aerospace customers from the region. This strategic move is expected to drive further growth for the company.
Key highlights from Argan's second quarter results include:
- Record consolidated revenue of $384 million
- Consolidated gross margin of 19.3%
- Record net income of $53.3 million or $3.76 per diluted share
- Record adjusted EBITDA of $70 million, with adjusted EBITDA margin of 18.2%
Argan's CFO, Josh Baugher, will provide further details on the company's financial results and provide a more detailed analysis of its performance during the second quarter.
