Argan Inc
Q4 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +12.22%.
Did AGX Beat Earnings? Q4 2026 Results
Argan delivered a blowout fourth quarter for fiscal 2026, posting diluted EPS of $3.47 against a consensus estimate of $1.98, a beat of 75.25%, while revenue climbed 12.7% year-over-year to $262.05 million, edging past the $260.32 million estimate. The standout driver was a sharp expansion in gross margin, which widened to 25.0% from 20.5% a year earlier, fueled in large part by strong execution in the Power segment, including the early achievement of substantial completion at the Trumbull Energy Center. Full-year net income reached $137.77 million, or $9.74 per diluted share, nearly doubling the prior year's profitability on an absolute basis, while project backlog more than doubled to approximately $2.93 billion, a figure that drew significant investor attention despite some debate over valuation at elevated multiples. Looking ahead, Argan's management pointed to accelerating demand from AI data center buildouts, electrification trends, and aging infrastructure replacement as catalysts supporting continued growth and margin strength.
- Strong project execution including early achievement of substantial completion at Trumbull Energy Center
- Higher revenues across all business segments
- Recently awarded contracts progressing through early stages of construction in the Power segment
- Improved gross profit margins in the Power segment
- Investment income contributing to other income
“Our record fourth quarter performance capped a year of strong execution throughout fiscal 2026, driving record top and bottom-line performance for the full year. During the year, we added $2.5 billion in new contract value, increasing our consolidated project backlog to more than $2.9 billion at year-end, reflecting substantial growth across the entire Argan platform. These are exciting times for our company as demand for our services remains exceptionally strong.”
Argan CEO, on the earnings call
Forward Guidance & Outlook
Argan sees exceptionally strong demand for its services driven by the rapid growth of AI and data centers, electrification of everything, replacement of aging power facilities, and a prolonged period of underinvestment in power infrastructure. The company reports a robust pipeline of opportunities to build new gas-fired power plants. With a consolidated project backlog of approximately $2.9 billion at year-end, the company is energized by its ability to continue driving meaningful revenue growth and enhanced profitability in the years ahead.
AGX YoY Financials
AGX Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.