Argan 2026 Q2 Earnings Strong Performance as Net Income Surges 93.8%

Argan (AGX) reported its fiscal 2026 Q2 earnings on Sep 04th, 2025, delivering robust financial results that exceeded expectations. The company posted a 93.8% year-over-year increase in net income, reflecting strong operational execution and disciplined capital allocation. While no specific revenue or EPS guidance was issued, the CEO expressed confidence in converting a record backlog into revenue in the second half of 2026.

Revenue
The total revenue for Argan grew by 4.7% to $237.74 million in 2026 Q2, compared to $227.01 million in the same period of the prior year, indicating steady top-line expansion.

Earnings/Net Income
Argan’s earnings per share (EPS) surged by 89.0% to $2.57 in 2026 Q2 from $1.36 in 2025 Q2. Net income climbed to $35.27 million, a 93.8% increase from $18.20 million in the prior year. This performance marked a new record high for fiscal Q2 net income, the highest in over 20 years. The significant improvement in EPS and net income underscores the company’s strong profitability and operational efficiency.

Price Action
The stock price of Argan rose 3.71% during the latest trading day, 4.83% during the most recent full trading week, and 6.45% month-to-date, reflecting positive investor sentiment.

Post Earnings Price Action Review
Following the earnings release, Argan’s shares experienced a notable upward trend, with gains across daily, weekly, and monthly metrics. The stock’s performance suggests market confidence in the company’s operational momentum and future growth prospects.

CEO Commentary
David Watson, CEO, highlighted Argan’s strong operational performance in Q2 2026, with 5% revenue growth, 18.6% gross margins, and record net income of $35.3 million or $2.50 per diluted share. He emphasized the company’s energy-agnostic capabilities in constructing gas-fired and renewable power plants, noting robust demand driven by aging infrastructure and rising energy consumption, particularly for AI data centers. Strategic priorities include workforce investment, disciplined capital allocation, and maintaining Argan’s reputation for on-time, on-budget project execution. Watson expressed optimism about future growth, citing a $2 billion backlog, including new projects in Ireland and Alabama, and a strengthening pipeline for complex combined cycle plants. He reaffirmed the company’s focus on long-standing customer relationships and strategic positioning in the evolving energy infrastructure market.

Guidance
Argan did not provide specific revenue or EPS guidance for 2026, citing the lumpy nature of the construction business. However, the company expects to exceed the prior year’s gross margin as a percent of revenue and anticipates further growth in backlog, potentially surpassing $2 billion by year-end. The CEO indicated the team is prepared to handle 10 to 12 jobs in the power segment, leveraging organic growth and existing workforce investments.

Additional News
On September 5, 2025, Argan outlined a record $2 billion backlog and set new growth targets for 2026. The company highlighted its strong project pipeline and ongoing expansion in the energy infrastructure sector. With a growing number of new projects in the United States and Ireland, Argan is focusing on converting this backlog into revenue. The CEO expressed confidence in the company’s ability to manage a robust workload while maintaining its reputation for on-time, on-budget execution. No major M&A activity, C-level changes, or dividend/buyback announcements were reported within the three weeks following the earnings release.