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Argan (AGX) Q2 2027 Earnings Report

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AGX Q2 2027 EPS Results

Actual EPS
$3.76
Consensus EPS
$2.64
Beat/Miss
Beat by +$1.12
One Year Ago EPS
$2.50

AGX Q2 2027 Revenue Results

Actual Revenue
$383.98M
Expected Revenue
$300.53M
Beat/Miss
Beat by +$83.45M
YoY Revenue Growth
+61.51%

Earnings Announcement Details

Quarter
Q2 2027
Date
09/02/2026
Time
After Close
Conference Call
Wednesday, September 2, 2026
AGX Upcoming Earnings

Argan's next earnings date is estimated for December 9, 2026, based on past reporting schedules.

Q2 2027 Earnings Call Audio

AGX Q2 2027 Earnings Call
0:00 / 0:00

Q2 2027 Earnings Slide Deck

Q2 2027 Earnings Call Summary

Q2 2027
Earnings Call Date:Sep 02, 2026|% Change Since:-21.38%|
Earnings Call Sentiment|Positive

The call was strongly positive overall, supported by record quarterly revenue, net income and adjusted EBITDA, substantial year-over-year growth across all segments, strong demand and pipeline commentary, a solid balance sheet, shareholder returns and progress on major projects. The main concerns were the decline in reported backlog, sequential consolidation margin compression, below-expectation Industrial margins, anticipated lower Industrial revenue and limited potential sequential growth in the third quarter.

Company Guidance

Management expects to add a handful of new projects over the next 7 to 15 months and remains positioned to execute on 10 to 12 jobs simultaneously, with complex combined cycle projects representing the majority of backlog for the near and midterm; the North Carolina fabrication facility is expected to be complete in Q3 and to generate around $10-plus million a quarter in industrial revenues later this year and into the next year. Industrial margins may run below historical norms for a quarter or 2, while fiscal year '27 is expected to be significantly above fiscal year '26, with limited quarter over consecutive quarter growth in Q3 and decreased industrial revenues compared to Q2 for the rest of the year; Teledata revenues are expected to potentially double revenues from fiscal year '26 and drive EBITDA growth over the next couple of quarters and beyond.

  • Record Quarterly Revenue and EarningsSecond-quarter consolidated revenue reached a record $384 million, up 62% from $237.7 million in the comparable fiscal 2026 quarter. Record net income was $53.3 million, or $3.76 per diluted share, compared with $35.3 million, or $2.50 per diluted share, in the prior-year quarter.
  • Strong Adjusted EBITDA PerformanceSecond-quarter adjusted EBITDA was a record $70 million, with an adjusted EBITDA margin of 18.2%, compared with adjusted EBITDA of $38.5 million and a margin of 16.2% in the comparable prior-year quarter.
  • Improved Gross Profit and First-Half ResultsSecond-quarter gross profit was approximately $74.2 million, with a gross margin of 19.3%, compared with $44.3 million and an 18.6% margin in the prior-year quarter. First-half fiscal 2027 revenue increased 56.5% to $674.9 million, net income increased to $99.4 million, or $7.01 per diluted share, and adjusted EBITDA reached $126.5 million, or an 18.7% margin.
  • Power Segment Growth and ProfitabilityPower segment revenue grew 53% to $301 million, representing 78% of consolidated revenue, with pretax book income of $66 million. Power gross margin was 22.4% in the second quarter, following 23.6% in the first quarter, remaining above 22% in both quarters.
  • Industrial Segment Revenue ExpansionIndustrial segment revenue increased 111% to $76 million, representing 20% of consolidated revenue, with pretax book income of approximately $4 million. Industrial backlog was $210 million at July 31, 2026.
  • Teledata Segment Growth and ExpansionTeledata revenue grew 40% to $7 million in the second quarter, representing 2% of consolidated revenue. The segment serves commercial and industrial customers, data centers, federal government locations and military installations requiring high-level security clearance.
  • ValCor Communications AcquisitionArgan completed the acquisition of ValCor Communications, a Connecticut-based provider of installation and repair services for information, communication and data networks. The acquisition strengthens Teledata, adds a New England presence and expands the customer base to Fortune 500 technology, defense and aerospace companies. Management expects Teledata revenues to potentially double from fiscal 2026 and expects EBITDA growth over the next couple of quarters and beyond.
  • Strong Balance Sheet and LiquidityAt July 31, 2026, Argan had approximately $1 billion of cash and investments, $440 million of net liquidity, no debt and stockholders' equity of over $0.5 billion. Net liquidity increased by $19 million from $421 million at January 31, 2026, despite returning $51.7 million of capital to shareholders during the first six months.
  • Shareholder Returns and Capital AllocationThe quarterly dividend is $0.50 per share, or $2 per share annually, following a 33% increase in September 2025. This was the third consecutive annual dividend increase, with the dividend cumulatively increasing 100%. The share repurchase authorization was increased to $200 million and extended through January 31, 2030; approximately $123.8 million has been returned through the repurchase program since inception.
  • Substantial Project Backlog and AdditionsConsolidated backlog of fully committed projects was $2.5 billion at July 31, 2026. Management said backlog remained above $2.5 billion despite generating $675 million of revenue in the first six months and not adding a major power project during the quarter, supported by more than $260 million of additions from scope increases, smaller jobs and intra-quarter revenues.
  • Strong Demand for Power InfrastructureManagement described the pipeline as exceptionally strong, with high demand across all three operating segments, particularly Power. The current Power backlog includes four U.S. gas-fired power plants totaling over 4.1 gigawatts. Approximately 80% of total backlog is natural gas, 11% renewable and 8% industrial.
  • Expected New Projects and Execution CapacityManagement expects to add a handful of new projects over the next 7 to 15 months and believes the company is positioned to execute on 10 to 12 jobs simultaneously. The company reported a significant number of inbound service requests and said headcount is at record levels and meaningfully above the prior year, with ongoing hiring and training across all segments.
  • Fabrication Facility ExpansionConstruction of the additional North Carolina fabrication facility is progressing well and is expected to be completed in Q3, later this year. The facility is primarily geared toward the $125 million data center project involving thermal expansion and energy storage tanks, and management expects approximately $10-plus million per quarter of incremental Industrial revenue later this year and into next year.
  • Early Project Completions and ExecutionArgan reached final completion on the last project in its three-part Midwest solar and battery project portfolio after reaching substantial completion ahead of schedule in the first quarter. The company also expects to reach substantial completion ahead of schedule on a 405-megawatt Midwest solar project later this month.
  • Progress Across Major ProjectsThe 1.2-gigawatt SLEC combined-cycle natural gas plant in Texas is moving forward as expected. Construction is ramping on the 1.4-gigawatt CPV project and the 860-megawatt Texas project, while progress is also being made on a 700-megawatt U.S. combined-cycle natural gas plant and two projects in Ireland: a 300-megawatt biofuel plant and a 170-megawatt thermal facility.
  • SG&A LeverageSecond-quarter SG&A increased to $17.4 million from $14.2 million year over year, but declined as a percentage of revenue to 4.5% from 6%. First-half SG&A increased to $33.1 million from $26.7 million, while declining as a percentage of revenue to 4.9% from 6.2%.
  • Positive Pricing and Power Margin OutlookManagement said Power margins have been above 22% over the last three quarters and expects future contracts to have meaningful pricing based on current market conditions. The company considers inflation, labor costs, other risk factors, contract type and location when pricing its typically fixed-price contracts.
  • Fiscal 2027 Revenue Expected Above Fiscal 2026Management expects fiscal 2027 revenue to be significantly above fiscal 2026. It also stated that the company achieved greater second-quarter revenue than anticipated across all segments, especially Power.

AGX Earnings History

AGX earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Dec 09, 20262027 (Q3)3.13-2.17――
Sep 02, 20262027 (Q2)2.643.762.550.40% (+1.26)
Jun 04, 20262027 (Q1)2.313.241.6102.50% (+1.64)
Mar 26, 20262026 (Q4)1.983.472.2256.31% (+1.25)
Dec 04, 20252026 (Q3)2.042.1728.50% (+0.17)
Sep 04, 20252026 (Q2)1.642.501.3190.84% (+1.19)
Jun 04, 20252026 (Q1)1.091.600.58175.86% (+1.02)
Mar 27, 20252025 (Q4)1.152.220.89149.44% (+1.33)
Dec 05, 20242025 (Q3)1.262.000.4400.00% (+1.60)
Sep 05, 20242025 (Q2)0.971.310.9439.36% (+0.37)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed