Companies /Industrials

Argan Inc

NYSE: AGX Engineering & Construction
$410.40
▲ $5.65 (+1.40%) today
Markets closed · 9:06am ET

Q2 2026 Earnings

Reported Sep 4, 2025, 4:06pm ET · SEC source
$2.50
Beat +52.44%
EPS · est. $1.64
$237.7M
Miss −2.55%
Revenue · est. $244.0M
+23.6%
Beating market
AGX vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+7%+14%+21%Sep 4Sep 5report 4:06pm ETearnings−0.5%+7.7%
0+7%+14%+21%Sep 4Sep 5earnings−0.5%+7.7%
AGX +7.7%S&P 500 −0.5%
0+7%+14%+21%Sep 4Sep 5report 4:06pm ETearnings−0.1%+7.7%
0+7%+14%+21%Sep 4Sep 5earnings−0.1%+7.7%
AGX +7.7%NASDAQ −0.1%
−10%−5%0+5%Sep 3Sep 12report 4:06pm ETearnings+1.3%+1.0%
−10%−5%0+5%Sep 3Sep 12earnings+1.3%+1.0%
AGX +1.0%S&P 500 +1.3%
−10%−5%0+5%Sep 3Sep 12report 4:06pm ETearnings+1.9%+1.0%
−10%−5%0+5%Sep 3Sep 12earnings+1.9%+1.0%
AGX +1.0%NASDAQ +1.9%
−11.07%
Day of report
−3.63%
Next session
+8.89%
One week
+26.96%
30 days

S&P 500 over the same 30 days: +3.38%.

Did AGX Beat Earnings? Q2 2026 Results

Argan delivered a standout second quarter for fiscal 2026, posting diluted EPS of $2.50 against a consensus estimate of $1.64, a beat of 52.44% that reflects a dramatic shift in the company's profitability profile. Revenue climbed 4.7% year-over-year to $237.74 million, falling just 2.55% short of the $243.97 million analysts had expected, a modest top-line miss that was more than offset by the earnings strength underneath. The core driver was a sharp expansion in gross margins within the Power Industry Services segment, which lifted consolidated margins to 18.6% from 13.7% in the year-ago period, with an unusually low income tax expense tied to stock option exercise deductions amplifying the bottom-line result. EBITDA surged to $36.23 million, representing 15.2% of revenues compared to 10.9% a year earlier. Adding to the constructive picture, the company's project backlog reached a record $1.95 billion, up from $1.36 billion earlier in the year, signaling meaningful revenue acceleration ahead as recently awarded projects move toward active construction.

Key Takeaways
  • Improved gross profit margins in the Power Industry Services segment driving 18.6% consolidated gross margin vs. 13.7% year-ago
  • Increased project activity from growing number of current projects and contract backlog
  • Favorable tax benefit from stock option exercise deductions reducing income tax expense to $361K on $35.6M pre-tax income
  • Completion of LNG project in Louisiana and first fire milestones at Trumbull units
  • Investment income contributing $5.6 million in other income

“We drove continued momentum in the second quarter of fiscal 2026, as reflected in consolidated revenue of $237.7 million, gross margin of 18.6%, significantly improved diluted earnings per share of $2.50 and substantially increased EBITDA of $36.2 million. Additionally, demand for our capabilities across all of our business segments remains strong, with record backlog of $2.0 billion.”

Argan CEO, on the earnings call

AGX YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$70.0M$140.0M$210.0M$227.0M$237.7MRevenue$31.1M$44.3MGross Profit$18.7M$30.1MOperating Income$18.2M$35.3MNet Income
$0$70.0M$140.0M$210.0MRevenueGross ProfitOperating IncomeNet Income

AGX Revenue by Segment

Power

Figures from SEC filings and company reports. Not investment advice.