Argan

Argan (AGX) Q1 2026 Earnings

Reported Jun 4, 2025 at 4:10 PM ET · SEC Source

Q1 26 EPS

$1.60

BEAT +46.79%

Est. $1.09

Q1 26 Revenue

$193.7M

MISS 0.05%

Est. $193.8M

vs S&P Since Q1 26

+226.7%

BEATING MARKET

AGX +252.4% vs S&P +25.7%

Market Reaction

Did AGX Beat Earnings? Q1 2026 Results

Argan delivered a standout first quarter of fiscal 2026, posting earnings per diluted share of $1.60 against a consensus estimate of $1.09, a beat of 46.79% that sent shares up roughly 8% following the report. Revenue climbed 22.8% year-over-year to … Read more Argan delivered a standout first quarter of fiscal 2026, posting earnings per diluted share of $1.60 against a consensus estimate of $1.09, a beat of 46.79% that sent shares up roughly 8% following the report. Revenue climbed 22.8% year-over-year to $193.66 million, just a hair below the $193.75 million consensus, as accelerating project activity across the company's power plant construction portfolio drove the top-line expansion. The most material force behind the earnings outperformance was a sharp improvement in gross margin, which expanded to 19.0% from 11.4% a year earlier, reflecting a favorable shift in project mix and the absence of the overseas project loss that had weighed on the prior-year quarter. Looking ahead, management pointed to a record project backlog of $1.86 billion as of April 30, 2025, anchored by full notice to proceed on the 1.2 GW Sandow Lakes Power Station in Texas, with several recently awarded projects still in early stages, signaling a meaningful revenue ramp in coming quarters.

Key Takeaways

  • 23% year-over-year revenue growth driven by increased number of current projects and contract backlog
  • Gross margin expansion to 19.0% from 11.4% due to favorable project mix and contract types; prior year negatively impacted by overseas project loss
  • SG&A as percentage of revenue declined to 6.5% from 7.2%, demonstrating operating leverage
  • Investment income contributed $5.4 million in other income
  • Record project backlog of $1.9 billion as of April 30, 2025
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AGX YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

“Our first quarter results reflect a strong start to fiscal 2026, with consolidated revenue growth of 23% to $193.7 million, gross margin of 19.0%, significantly enhanced diluted earnings per share of $1.60, and EBITDA of $30.3 million. During the first quarter, we also received full notice to proceed for the Sandow Lakes Power Station, a 1.2 GW ultra-efficient combined-cycle natural gas-fired plant in Lee County, Texas, which increased our backlog to a record $1.9 billion as of April 30, 2025.”

— David Watson, Q1 2026 Earnings Press Release