Argan 2026 Q3 Earnings Record Net Income Surpasses 20-Year High

Argan (AGX) delivered mixed Q3 2026 results, with revenue declining 2.3% to $251.15 million but net income rising 9.7% to $30.74 million. The company maintained guidance in-line with expectations, emphasizing a record $3 billion backlog and strategic capital returns.

Revenue

Argan’s Power Services division remained the backbone, generating $195.51 million in revenue, while Industrial Services contributed $49.36 million. Telecom Services accounted for $6.29 million, with no revenue from other segments. The sequential revenue increase of 6% contrasted with the year-over-year decline, reflecting project timing and execution phases.

Earnings/Net Income

The company’s EPS surged 7.2% to $2.22, driven by improved gross margins (18.7%) and disciplined cost management. This marked a new fiscal Q3 record for net income, underscoring Argan’s ability to convert operational efficiency into profitability.

Post-Earnings Price Action Review

A backtested strategy of buying AGX shares post-earnings and holding for 30 days yielded a 687.99% total return over three years, vastly outperforming the benchmark. With a CAGR of 99.91%, zero drawdowns, and a Sharpe ratio of 1.97, the approach balanced risk and reward effectively, highlighting AGX’s momentum potential.

CEO Commentary

CEO David Watson attributed the results to a $3 billion backlog, including new projects like the 1.4 GW Basin Ranch facility. Despite Q3 revenue challenges, he emphasized sequential growth, margin improvements, and a $0.50 quarterly dividend hike, reflecting confidence in long-term demand for energy infrastructure.

Guidance

Argan plans to maintain a 10–12 project capacity and target gross margins above 16%. The company also authorized $150 million in share repurchases, reinforcing its commitment to shareholder returns amid a $2 annual dividend run rate.

Additional News

Argan’s $0.50 quarterly dividend increase and $150 million share buyback authorization underscored its capital return focus. The company also highlighted a $3 billion backlog, driven by new Texas-based gas-fired projects, positioning it to capitalize on grid modernization and renewable energy demand. No executive changes or M&A activity were reported in the three-week period post-earnings.