Download PDF

1. Company Snapshot

1.a. Company Description

Argan, Inc., through its subsidiaries, provides engineering, procurement, construction, commissioning, operations management, maintenance, project development, technical, and consulting services to the power generation and renewable energy markets.The company operates through Power Industry Services, Industrial Fabrication and Field Services, and Telecommunications Infrastructure Services segments.The Power Industry Services segment offers engineering, procurement, and construction contracting services to the owners of alternative energy facilities, such as biomass plants, wind farms, and solar fields; and design, construction, project management, start-up, and operation services for projects with approximately 15 gigawatts of power-generating capacity.


This segment serves independent power project owners, public utilities, power plant equipment suppliers, and energy plant construction companies.The Industrial Fabrication and Field Services segment provides industrial field, and pipe and vessel fabrication services for forest products, industrial gas, fertilizer, and mining companies in southeast region of the United States.The Telecommunications Infrastructure Services segment offers trenchless directional boring and excavation for underground communication and power networks, as well as aerial cabling services; and installs buried cable, high and low voltage electric lines, and private area outdoor lighting systems.


It also provides structured cabling, terminations, and connectivity that offers the physical transport for high-speed data, voice, video, and security networks.This segment serves state and local government agencies, regional communications service providers, electric utilities, and other commercial customers, as well as federal government facilities comprising cleared facilities in the mid-Atlantic region of the United States.Argan, Inc.


was incorporated in 1961 and is headquartered in Rockville, Maryland.

Show Full description

1.b. Last Insights on AGX

Argan, Inc.'s recent performance is driven by robust growth in its Power Industry Services segment, fueled by an 88.7% year-over-year surge in project backlog to $1.95 billion. Demand from AI, data centers, EV infrastructure, and renewable energy projects is a key growth driver. The company has a solid position to capitalize on power generation demand, with a record backlog and a zero-debt balance sheet. Analysts have a "Moderate Buy" consensus rating, with a price target of $258.20. Cwm LLC also increased its holdings in Argan by 5.8% in Q2.

1.c. Company Highlights

2. Argan's Q2 2026 Earnings: Strong Revenue and Margin Expansion

Argan reported Q2 2026 revenue of $238 million, representing a 5% year-over-year growth and a 23% sequential increase. The gross margin expanded to 18.6% from 13.7% in 2025, driven by strong execution in power and renewable projects. Earnings per share (EPS) came in at $2.50, beating estimates of $1.99. The company's EBITDA margin stood at 15.2%, with a record EBITDA of $36.3 million.

Publication Date: Sep -28

📋 Highlights
  • Trumbull Project Timeline:: First fire achieved in Q2 2026, second unit in August 2026; completion expected by mid-2027.
  • Gross Margin Performance:: 18.6% margin driven by strong execution in power/renewables; guidance avoided due to project variability but exceeding 2025 gross profit margin expected.
  • Backlog Growth:: $189M industrial backlog and $2B+ power backlog by year-end, with $100M–$600M new projects added in Q2–Q3 2026.
  • Industrial Recovery:: Industrial segment backlog at $189M, with improved H2 2026 performance anticipated amid stable pipeline and OEM/IEA-driven demand.
  • Capacity & Strategy:: Capacity sufficient for 10–12 power projects; organic growth prioritized, with headcount expanded to absorb new workloads.

Segment Performance

The Power Industry Services segment drove revenue growth, with a 13% increase to $197 million, accounting for 83% of total revenue. The Industrial Construction Services segment saw a sequential increase of 23% to $36 million, with a pretax income of $3 million. The Telecommunications segment contributed 2% to revenue, with a record backlog.

Valuation and Outlook

With a P/E Ratio of 31.25, the stock appears to be priced for growth. The company's Return on Equity (ROE) stands at 32.61%, indicating strong profitability. The Net Debt / EBITDA ratio is -1.39, reflecting Argan's net cash position. As the company continues to execute on its projects, including the Trumbull plant and the SLEC project, its strong backlog and disciplined capital allocation are expected to drive future growth. David Watson's comment on exceeding last year's gross profit margin supports this outlook.

Operational Highlights

Argan achieved significant milestones, including the first fire at the Trumbull project in Q2 and the second unit in August, with completion expected in H1 2026. The company has a record backlog of $2 billion, with 61% in natural gas and 29% in renewable projects, positioning it for long-term growth in energy infrastructure.

3. NewsRoom

Card image cap

Argan, Inc. (AGX) Q3 2026 Earnings Call Transcript

Dec -05

Source: seekingalpha.com

Card image cap

Argan (AGX) Beats Q3 Earnings and Revenue Estimates

Dec -04

Source: zacks.com

Card image cap

Argan, Inc. Reports Third Quarter Fiscal 2026 Results

Dec -04

Source: businesswire.com

Card image cap

Is Argan (AGX) Stock Outpacing Its Construction Peers This Year?

Dec -04

Source: zacks.com

Card image cap

Best Momentum Stocks to Buy for Dec.3

Dec -03

Source: zacks.com

Card image cap

3 Momentum Anomaly Stocks to Buy as Markets Gear Up for 2025 Swansong

Dec -03

Source: zacks.com

Card image cap

Navellier Ups Energy Exposure, Increases Argan Position to Over $10 Million

Dec -02

Source: fool.com

Card image cap

Cetera Investment Advisers Sells 372 Shares of Argan, Inc. $AGX

Dec -02

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.42%)

6. Segments

Power

Expected Growth: 8.3%

Power from Argan, Inc.'s 8.3% growth driven by increasing demand for renewable energy, expansion into new markets, and strategic acquisitions. Additionally, government incentives and tax credits for clean energy projects, as well as declining costs of wind and solar energy, contribute to the company's growth momentum.

Industrial

Expected Growth: 4.83%

Argan's Industrial segment growth of 4.83% is driven by increasing demand for engineering and construction services in the power generation and renewable energy markets, as well as the company's strategic acquisitions and expansion into new geographic regions.

Telecom

Expected Growth: 7.77%

Argan's Telecom segment growth of 7.77% is driven by increasing demand for 5G infrastructure, growing need for network densification, and rising adoption of IoT devices. Additionally, the company's focus on providing engineering and construction services for wireless network infrastructure, and its strategic acquisitions, have contributed to its growth momentum.

7. Detailed Products

Power Generation Systems

Argan, Inc. provides power generation systems that offer reliable and efficient power solutions for various industries.

Combined Heat and Power (CHP) Systems

Argan, Inc. offers CHP systems that generate both electricity and thermal energy from a single fuel source.

Biomass-Based Renewable Energy Systems

Argan, Inc. provides biomass-based renewable energy systems that convert organic waste into electricity and heat.

Energy Storage Systems

Argan, Inc. offers energy storage systems that store excess energy for later use, reducing peak demand and energy costs.

Engineering, Procurement, and Construction (EPC) Services

Argan, Inc. provides EPC services for the design, construction, and commissioning of power generation and energy storage projects.

8. Argan, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Argan, Inc. is medium due to the availability of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers for Argan, Inc. is high due to the concentration of buyers in the market.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Argan, Inc. is low due to the availability of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Argan, Inc. is medium due to the moderate barriers to entry in the market.

Intensity Of Rivalry

The intensity of rivalry for Argan, Inc. is high due to the high level of competition in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.80%
Debt Cost 3.95%
Equity Weight 98.20%
Equity Cost 6.00%
WACC 5.96%
Leverage 1.83%

11. Quality Control: Argan, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Argan

A-Score: 5.3/10

Value: 1.2

Growth: 8.7

Quality: 7.2

Yield: 2.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Willdan

A-Score: 4.8/10

Value: 2.1

Growth: 7.4

Quality: 6.4

Yield: 0.0

Momentum: 10.0

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Tutor Perini

A-Score: 4.6/10

Value: 5.9

Growth: 4.7

Quality: 4.4

Yield: 0.0

Momentum: 9.5

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Orion Holdings

A-Score: 4.4/10

Value: 5.2

Growth: 5.7

Quality: 4.2

Yield: 0.0

Momentum: 9.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
NV5 Global

A-Score: 4.3/10

Value: 4.1

Growth: 5.0

Quality: 5.3

Yield: 0.0

Momentum: 4.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Limbach Holdings

A-Score: 4.2/10

Value: 1.7

Growth: 8.0

Quality: 6.7

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

313.7$

Current Price

313.7$

Potential

-0.00%

Expected Cash-Flows