Companies /Industrials

Argan Inc

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

Q3 2026 Earnings

Reported Dec 4, 2025, 4:15pm ET · SEC source
$2.17
Beat +3.52%
EPS · est. $2.10
$251.2M
Miss −5.20%
Revenue · est. $264.9M
−0.5%
Trailing market
AGX vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%0+8%+16%Dec 4Dec 5report 4:15pm ETearnings+0.3%+0.5%
−8%0+8%+16%Dec 4Dec 5earnings+0.3%+0.5%
AGX +0.5%S&P 500 +0.3%
−8%0+8%+16%Dec 4Dec 5report 4:15pm ETearnings+0.4%+0.5%
−8%0+8%+16%Dec 4Dec 5earnings+0.4%+0.5%
AGX +0.5%NASDAQ +0.4%
−7%0+7%+14%Dec 3Dec 12report 4:15pm ETearnings−0.3%+0.8%
−7%0+7%+14%Dec 3Dec 12earnings−0.3%+0.8%
AGX +0.8%S&P 500 −0.3%
−7%0+7%+14%Dec 3Dec 12report 4:15pm ETearnings−1.5%+0.8%
−7%0+7%+14%Dec 3Dec 12earnings−1.5%+0.8%
AGX +0.8%NASDAQ −1.5%
−11.98%
Day of report
+1.79%
Next session
+1.98%
One week
+0.09%
30 days

S&P 500 over the same 30 days: +0.56%.

Did AGX Beat Earnings? Q3 2026 Results

Argan delivered a mixed but fundamentally encouraging fiscal third quarter, beating earnings expectations while falling short on the top line as project timing created a modest revenue drag. The power plant construction specialist earned $2.17 per diluted share, clearing the $2.10 consensus by 3.52%, even as revenue of $251.15 million came in 5.20% below estimates and edged down 2.3% year over year from $257.01 million, with the decline reflecting recently awarded contracts still progressing through early construction phases. The more compelling story, however, was the record $2.97 billion project backlog, more than double the $1.36 billion reported at fiscal year-end 2025, fueled by two new large-scale gas-fired power projects in Texas totaling roughly 2.26 GW. Gross margin expanded to 18.7% from 17.2%, lifting net income to $30.74 million, while cash and investments swelled to $726.82 million on a zero-debt balance sheet. Despite some post-earnings volatility in the stock, management expressed confidence that the urgent demand for new combined-cycle natural gas capacity positions the company for sustained revenue growth and improved profitability in the years ahead.

Key Takeaways
  • Improved gross profit margins in Power Industry Services and Industrial Construction Services segments
  • Investment income contributing $7.1 million in other income
  • Strong cash generation increasing total cash, cash equivalents and investments to $726.8 million
  • Record project backlog of $3.0 billion with addition of two new gas-fired projects

“We delivered solid third quarter results highlighted by our record backlog of $3.0 billion, which as expected, reflects the addition of two new gas-fired projects in the quarter – the 1.4 GW CPV Basin Ranch Energy Center in Ward County, Texas, and a 860 MW facility, also located in Texas. With these new projects added, we are currently under contract for the construction of approximately 6 GW of power generating assets.”

Argan CEO, on the earnings call

Forward Guidance & Outlook

Argan expects to periodically add projects to its backlog as power plant construction projects underway make progress and are completed. The company is optimistic about its ability to drive revenue growth and enhanced profitability for many years to come, citing significant urgency around construction of new combined-cycle natural gas projects as older facilities retire and electrification demand grows. Argan remains committed to a disciplined approach to capitalizing on strong demand, focusing on the right projects with the right partners in the right geographies.

AGX YoY Financials

Q3 2026 vs Q3 2025 · SEC filings Q3 2025 Q3 2026
$0$80.0M$160.0M$240.0M$257.0M$251.2MRevenue$44.3M$46.9MGross Profit$30.3M$32.6MOperating Income$28.0M$30.7MNet Income
$0$80.0M$160.0M$240.0MRevenueGross ProfitOperating IncomeNet Income

AGX Revenue by Segment

Power

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