Argan, Inc. — Second Quarter Fiscal 2027 Earnings Summary

Financial Performance

• Consolidated revenues for the quarter ended July 31, 2026, reached a record $384.0 million, a 61.5% increase from $237.7 million in the prior-year quarter.
• Consolidated net income for the quarter was $53.3 million, compared to $35.3 million in the prior-year quarter.
• Diluted earnings per share (EPS) were $3.76, up from $2.50 in the prior-year quarter.
• Gross profit was $74.2 million with a gross margin of 19.3%, compared to $44.3 million and 18.6% in the prior-year quarter.
• Adjusted EBITDA for the quarter was $70.0 million, an increase from $38.5 million in the prior-year quarter, with an Adjusted EBITDA margin of 18.2% versus 16.2%.
• For the six months ended July 31, 2026, consolidated revenues were $674.9 million, a 56.5% increase from $431.4 million in the prior-year period.
• Net income for the six-month period was $99.4 million, compared to $57.8 million in the prior-year period.
• Diluted EPS for the six-month period was $7.01, compared to $4.09 in the prior-year period.
• Adjusted EBITDA for the six-month period was $126.5 million, up from $70.0 million in the prior-year period, with an Adjusted EBITDA margin of 18.7% versus 16.2%.
• Cash, cash equivalents, and investments totaled $1.03 billion as of July 31, 2026, up from $895.0 million as of January 31, 2026.
• Net liquidity was $440.4 million as of July 31, 2026, compared to $421.0 million as of January 31, 2026.
• The Company reported no debt.
• Selling, general, and administrative expenses were $17.4 million (4.5% of revenue) for the quarter, compared to $14.2 million (6.0% of revenue) in the prior-year quarter.
• Other income, net, was $10.1 million for the quarter, primarily from investment income.

Business Segments and Product Lines

• The Power segment revenue grew 53% year-over-year to $301 million with a gross margin of 22%.
• Power segment growth was driven by the ramp-up of construction activities on several contracts not yet at peak construction.
• The Industrial segment is constructing a new fabrication facility with expected completion next quarter to support demand for data center vessel fabrication.
• The Teledata segment closed the acquisition of ValCor Communications, a Connecticut-based provider of installation and repair services for information, communication, and data networks.
• The ValCor acquisition expands the Teledata segment's geographic presence and client base to include defense, aerospace, and technology clients in the region.

Other Key Points

• Project backlog was approximately $2.5 billion as of July 31, 2026, down from $2.9 billion as of January 31, 2026.
• Cash dividends per share were increased to $0.500 for the quarter, compared to $0.375 in the prior-year quarter.
• Cash dividends per share totaled $1.000 for the six months ended July 31, 2026, compared to $0.750 in the prior-year period.
• Share repurchase treasury stock at cost increased to $144.9 million as of July 31, 2026, from $114.4 million as of January 31, 2026.
• The Company completed final construction on the remaining Midwest Solar and Battery Projects following the close of the quarter.
• The conference call and webcast were scheduled for September 2, 2026, at 5:00 p.m. ET.