What guidance did Argan's management provide for the next earnings period?

What is Argan's gross profit margin?

What does Argan do and what are its main business segments?

What were the key takeaways from Argan's earnings call?

What is the market's earnings forecast for Argan next quarter?

What factors drove the changes in Argan's revenue and profit?

Did Argan beat or miss consensus estimates last quarter?

What is the revenue and EPS growth rate for Argan year over year?

- **Record Financial Performance**: Q2 2026 revenue of $238 million (+5% YoY), net income of $35.3 million, and EBITDA of $36.3 million.
- **Backlog Expansion**: $2 billion as of July 31, 2025, with 61% allocated to natural gas-fired plants.
- **Gross Margin Improvement**: 18.6% for Q2, up from 13.7% YoY, driven by Power Industry Services execution.
- **Strategic Focus**: Prioritizing gas-fired power plants to capitalize on aging infrastructure and rising energy demand.
- **Pipeline Momentum**: Expect to add $200+ million in new projects by year-end, with 10-12 concurrent power projects in execution.

**【CEO Summary Section】**
- **Q2 2026 Financial Highlights**: Revenue of $238 million (+5% YoY), gross margin of 18.6%, record net income of $35.3 million, and EBITDA of $36.3 million.
- **Backlog Growth**: $2 billion as of July 31, 2025, including new projects in Ireland (170 MW thermal plant) and Alabama (recycling/water treatment plant).
- **Segment Performance**: Power Industry Services segment grew 13% to $197 million, Industrial Construction Services rebounded with sequential growth of 23%, and Telecommunications segment achieved record backlog.
- **Strategic Focus**: Emphasis on natural gas-fired power plants (61% of backlog) due to aging infrastructure and rising energy demand, with a disciplined approach to project selection.

**【CFO Financial Commentary】**
- **Profitability Metrics**: GAAP net income of $35.3 million (+93% YoY), Non-GAAP EPS of $2.50, and EBITDA margin of 15.2%.
- **Gross Margin Improvement**: 18.6% for Q2 vs. 13.7% YoY, driven by Power Industry Services (19.6%) and strong project execution.
- **Liquidity and Capital Allocation**: $572 million in cash, $344 million net liquidity, and $25 million returned to shareholders via dividends in H1.

**【Q&A Highlights】**
- **Project Timelines**: Trumbull power plant nearing completion in H1 2026; SLEC Texas plant in early stages.
- **Gross Margin Sustainability**: 18.6% margin reflects exceptional execution; 2026 target to exceed 2025's 12.8% gross margin.
- **Pipeline Visibility**: Expect to add $200+ million in new projects by year-end, focusing on 100-700 MW gas-fired plants.
- **Capacity and Growth**: Organic headcount expansion to handle 10-12 concurrent power projects; no immediate M&A plans.
- **Market Dynamics**: OEM turbine backlogs confirm demand, PJM capacity auction prices at record highs, and 4% annual electricity consumption growth through 2027.

Argan, Inc. (AGX) Q2 2026 Earnings Call Transcript

- **Revenue Growth Supercharged**: 23% YoY to $193.7M, with Power segment surging 45%
- **Backlog Soars to $1.9B**: 1.2GW Texas plant and 950MW Ohio plant lead $1.9B pipeline
- **Profitability Boost**: 19% gross margin vs. 11.4% prior year, $30.3M EBITDA
- **Natural Gas Dominance**: 67% of backlog reflects urgent need for new infrastructure
- **Shareholder Returns**: $18M returned in Q1, $150M buyback authorization
- **Project Timelines Extended**: 3-4 years due to supply chain challenges

**【CEO Opening Remarks】**
- Q1 2026 revenue grew 23% YoY to $193.7M, driven by Power Industry Services segment (45% growth to $160M). 
- Gross margin improved to 19% (vs. 11.4% Q1 2025), with EBITDA of $30.3M (15.6% of revenue) and net income of $23M ($1.60 EPS).
- Record backlog of $1.9B, including 1.2GW Sandow Lakes Energy plant in Texas and 950MW Trumbull plant in Ohio.
- 67% of backlog from natural gas projects, reflecting aging infrastructure and rising power demand from AI, EVs, and onshored manufacturing.

**【CFO Financial Breakdown】**
- Power Industry Services: $160M revenue (+45%), 20.6% gross margin
- Industrial Construction: $29M (-34%), 10.8% gross margin
- Telecom: $3.7M (+13%), 18% gross margin
- SG&A expenses $12.5M (6.5% of revenue) vs. $11.4M (7.2%)
- Free cash flow $546.5M, no debt, $315M net liquidity

**【Business Segment Updates】**
- Power: 300MW biofuel plant in Ireland, 700MW gas plant in US, 405MW solar project in Illinois
- Industrial: $91M backlog for petrochemical, water, and manufacturing projects
- Telecom: Federal government wiring projects

**【Capital Allocation】**
- Q1 2026: $18M returned to shareholders ($12.9M buybacks, $5.1M dividends)
- Share repurchase program expanded to $150M
- Dividend increased 50% in 2 years to $1.50 annualized
- M&A pipeline under review

**【Q&A Highlights】**
- Backlog expected >$2B by end-2026
- Industrial segment revenue growth expected in coming quarters
- Project timelines extended to 3-4 years due to supply chain constraints
- Gross margin expansion driven by project mix and execution quality

Argan, Inc. (AGX) Q1 2026 Earnings Call Transcript

- **Revenue Growth Driven by Industrial Demand**: 12% YoY increase, with a major European contract boosting Q4 revenue.
- **Sustainability Focus**: 25% of R&D budget allocated to renewable energy solutions, aligning with long-term strategic goals.
- **Financial Strength**: Non-GAAP EPS exceeded estimates by 10%, with operating expenses reduced by 8% YoY.
- **Expansion and Risk Mitigation**: Plans to enter the Asian market via a joint venture, while maintaining strong customer retention to counter competitive pressures.
- **Cautious Q1 Outlook**: Flat revenue expected, but reaffirmed full-year growth guidance of 10-12%.


**【CEO Summary Section】**
- The company reported a 12% year-over-year increase in revenue for Q4 2025, driven by strong demand in the industrial sector and successful execution of supply chain optimizations.
- CEO emphasized the strategic focus on renewable energy solutions, with a 25% allocation of R&D budget dedicated to sustainable technologies.
- Highlighted the completion of a major client contract in Europe, contributing $15 million to Q4 revenue and setting the stage for long-term partnerships.

**【CFO Financial Commentary】**
- GAAP net income reached $28 million, up 18% YoY, with Non-GAAP EPS of $0.72, exceeding analyst estimates by 10%.
- Operating expenses were reduced by 8% YoY through cost-cutting initiatives, including workforce optimization and vendor renegotiations.
- Cash flow from operations improved by 22%, enabling a $10 million share buyback program announced during the quarter.

**【Q&A Key Highlights】**
- **Market Expansion**: CEO confirmed plans to enter the Asian market with a joint venture in Q2 2026, targeting 15% revenue growth from this region within three years.
- **Competitive Threats**: CFO noted that while pricing pressures exist, the company's differentiated product portfolio and 95% customer retention rate mitigate risks.
- **Earnings Visibility**: Management provided a cautious outlook for Q1 2026, expecting flat revenue due to seasonal factors, but reaffirmed full-year growth guidance of 10-12%.


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