Argan (AGX) Achieves Record Backlog and Income

Argan (AGX) reported record net income of $35.3 million and revenue of $237.7 million for the fiscal second quarter ended July 31, 2025, with a backlog reaching $2 billion. Backlog growth of 5% from April 30, 2025, includes a major thermal facility in Ireland and a water treatment contract in Alabama. Gross margins rose to 18.6%, and the company maintained a strong cash position of $572 million. A 25% dividend increase to $0.375 per share in September 2024 and $25 million returned to shareholders in the first six months of fiscal 2026 reflect Argan’s confidence in sustained cash generation.

The company’s consolidated project backlog reached $2 billion at Q2 FY2026, with record backlogs in all business segments. Margins surged to 18.6%, driven by exceptional execution in the Power Industry Services segment. Capital allocation strategy includes a 25% dividend increase and $25 million returned to shareholders in the first half of fiscal 2026. Management anticipates finishing fiscal 2026 with a backlog significantly over $2 billion, with a focus on gas and renewable power facilities. No detailed revenue or EPS guidance was provided.

Argan’s backlog surpasses $2 billion with record backlogs in all business segments, underpinned by strong financial performance and operational execution. The company’s strategic backlog growth, enhanced gross margins, and capital allocation decisions demonstrate long-term value creation for investors.