Argan Inc. Reports Strong Q1 2026 Results: Record Backlog, Revenue Growth, and Enhanced Profitability
Argan Inc. has announced its strong start to fiscal 2026 in the first quarter, delivering consolidated revenue growth of 23% to $193.7 million and achieving enhanced profitability as demonstrated by net income of approximately $23 million, or $1.60 per diluted share, up $1.02 year over year.
According to David Watson, Chief Executive Officer of Argan Inc., the company 'delivered a strong start to fiscal 2026 in the first quarter with consolidated revenue growth of 23% to $193.7 million and gross margin of 19%, led by continued momentum in our Power Industry Services segment.'
The company's Power Industry Services segment, which focuses on the construction of multiple types of power facilities, including efficient gas-fired power plants, solar energy fields, biomass facilities, and battery energy storage systems, reported revenues of $160 million in the first quarter, a 45% increase from the same period last year. This segment represented 83% of Argan Inc.'s first quarter revenues and reported pretax book income of approximately $31 million.
Argan Inc.'s record backlog of $1.9 billion as of April 30, 2025, reflects the company's receipt of full notice to proceed on its project with Sandow Lakes Energy Company for a 1.2-gigawatt ultra-efficient combined cycle natural gas-fired plant in Texas.
The company believes that today's energy demand environment has created a substantial pipeline of project opportunities, and they are seeing heightened demand for their expertise and capabilities, particularly as they relate to the construction of complex combined cycle natural gas facilities.
Argan Inc.'s balance sheet remains strong with $546.5 million of cash and investments, net liquidity of $315 million, and no debt at April 30, 2025. The company's financial strength and discipline have enabled them to continue to return capital to shareholders, paying a quarterly dividend of $0.375 and repurchasing approximately 100,000 shares for approximately $12.9 million.
Argan Inc.'s CFO, Josh Baugher, stated that the company 'reported record backlog of $1.9 billion as of April 30, 2025,' which reflects the company's strong position in the market.
The company is very pleased with the start to fiscal 2026 and remains focused on executing on their ongoing projects while also intent on winning new opportunities.
In conclusion, Argan Inc.'s Q1 2026 results demonstrate the company's continued momentum and strength in the power industry services segment. The record backlog, revenue growth, and enhanced profitability are testaments to the company's expertise and capabilities, and its strong financial position enables it to continue returning capital to shareholders.
