Argan, Inc. Sees Record Growth with 52% Consolidated Revenue Increase and Strong Project Pipeline
On March 27th, Argan, Inc., a leading provider of energy infrastructure solutions, announced its record-breaking fiscal fourth quarter and full year results for the period ended January 31st, 2025. The company's strong performance was reflected in its consolidated revenue growth, gross margin, earnings per share (EPS), and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
The Argan team achieved a remarkable 52% increase in consolidated revenue to $874 million for the fiscal year. This significant growth was driven by increased revenue from its Power Industry Services segment and strong performance in its Industrial Construction Services business. The company's full-year gross margin reached a record 16.1%, while diluted EPS came in at $6.15, a new high-water mark for the company.
Argan's Power Industry Services segment saw a substantial increase of 65% to $197 million in revenue for the fourth quarter compared to the same period last year. This growth was fueled by new project wins, including an approximately 700-megawatt combined cycle natural gas-powered project in the U.S. and a 300-megawatt biofuel plant in Ireland. The company added 1 gigawatt of power projects to its backlog during the fourth quarter, further solidifying its position as a leader in the energy infrastructure sector.
David Watson, CEO of Argan, highlighted the company's exceptional execution across all its businesses, stating that the focus and dedication of its team resulted in these outstanding achievements. Josh Baugher, CFO, emphasized the strength of the company's balance sheet, which features $525 million in cash and investments, net liquidity of $301 million, and no debt at January 31st, 2025.
The company's Board approved a 25% increase to its annual dividend rate during the third quarter of fiscal 2025, setting it at $1.50 per common share. This move demonstrates Argan's commitment to returning value to its shareholders while continuing to invest in its growth prospects.
Argan's industrial construction services segment, represented by TRC, had a solid quarter but experienced a decrease in revenues due to the timing of certain projects. Despite this, the company remains optimistic about its long-term growth prospects and expects heightened demand for its capabilities to continue for the next decade and beyond.
With an 80% increase in project backlog compared to last year's figures at January 31st, 2025, Argan is well-positioned to capitalize on a vast pipeline of opportunities. As David Watson noted, the energy demand environment, characterized by increasing pressure on the power grid and an urgent need for additional resources, presents a significant runway for growth in the near, mid, and long term.
