AGX NYSE Earnings call
ARGAN Inc. (AGX) · Q2 2026 results and valuation
Share price: $322.00 · 2026-11-11
ARGAN INC is an engineering and construction firm providing services in the power, industrial, and teledata sectors. The company provides engineering, procurement, construction, and maintenance services for power generation, industrial operations, and data networks. It serves commercial, industrial, and government customers in the United States, Ireland, and the United Kingdom. Source: 10-K annual report (2026-03-26)
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q2 2027 · published 2 Sep 2026 and 4 Jun 2026
Net income up 15.7% on the previous quarter. Management sounded cautious, in its script and in answers to analysts.
1 · Numbers
+15.7%
Net income vs Q1 2026
Outlook given
Net income 53.3M vs 46.1M
Revenue +32.0%
Against the same quarter last year (Q2 2025) it is +51.1%, so it is not just seasonal.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
ARGAN Inc. increased its opportunistic buyback program from $150 million to $200 million and extended the expiration date to January 31, 2030.
Valuation
Is ARGAN Inc. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-01-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 20.0% growth a year (3-year revenue growth), the model's fair value is $1481.87 a share — the stock trades 78% below it. Today's price assumes −2.3% growth a year.
Current price
$322.00
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
-2.3% for 10 yrs
Fair value / share
$1481.87
Buy below
$1111.40
Price vs fair value
Undervalued 78%
Price vs buy-below price
Undervalued 71%
Read between the lines
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Figure
Quarter highlights included record revenue of $291 million, improved gross margins of 21%, increased net income of $46 million or $3.24 per diluted share and improved adjusted EBITDA of $56.4 million.
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Figure
Net income rose from $22.6 million or $1.60 per diluted share in the first quarter of fiscal 2026 to $46.1 million or $3.24 per diluted share in the first quarter of fiscal 2027.
Source quote
“Net income for the first quarter of fiscal 2027 was $46.1 million or $3.24 per diluted share compared to $22.6 million or $1.60 per diluted share for last year's comparable quarter.”
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Guidance
AGX currently has 8 power jobs underway, including 6 thermal and 2 renewables, with more expected to be added over the next 10 to 18 months.
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Figure
At April 30, 2026, ARGAN had $974 million of cash and investments, net liquidity of $421 million and no debt.
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Figure
The consolidated project backlog for the Power, Industrial, and Teledata segments totaled $2.8 billion as of April 30, 2026.
Source quote
“Our consolidated project backlog consists of fully committed projects across our Power, Industrial and Teledata segments and totaled $2.8 billion at April 30, 2026.”
3 more
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Figure
AGX highlights its 20 years of experience executing fixed price contracts, which are the preferred contract type for Independent Power Producers (IPPs).
Source quote
“IPPs typically do utilize the fixed price contract, which we are very happy to take on and frankly, have 20 years of proving that we can execute on fixed price contracts.”
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Key theme
The electrification of the economy, the use of EVs, and the proliferation of data centers are creating urgent demand for additional energy infrastructure to support a power grid under tremendous pressure.
Source quote
“The electrification of the economy, including the onshoring of domestic manufacturing, the use of EVs and the proliferation of data centers is creating urgent demand for additional energy infrastructure to support a power grid that is under tremendous pressure.”
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Figure
Net liquidity remained consistent at $421 million, which supports a book of business of $2.8 billion in backlog.
Source quote
“So net liquidity remained consistent at $421 million. And so that clearly supports a book of business of $2.8 billion in backlog.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“The increase in gross profit and improvement in gross margin for the recently ended quarter was primarily driven by our Power segment, reflecting a shift in project and contract mix...”
“Our strong second quarter built on the momentum we created in the first quarter of fiscal 2027, demonstrating our operational strength across our business.”
“The increase represented our third consecutive year of raising our quarterly dividend, which cumulatively has increased by 100%, reflecting the strength of our business and our commitment to returning shareholder...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-07-31)
| Metric | Q2 2026period end 2026-07-31 | Q1 2026period end 2026-04-30 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 384.0M | 291.0M | +32.0% | 237.7M | +61.5% |
| Gross profit | 74.2M | 61.1M | +21.4% | 44.3M | +67.7% |
| Operating income | 56.8M | 45.4M | +25.1% | 30.1M | +89.0% |
| Net income | 53.3M | 46.1M | +15.7% | 35.3M | +51.1% |
| EPS | 3.76 | 3.24 | +16.0% | 2.50 | +50.4% |
| P/E today 21.9 | 45.1 | 58.9 | −13.8 | 29.4 | +15.7 |
Topics
Most discussed now
- Each of ARGAN's operating segments recorded substantially improved revenue, contributing to its record consolidated revenue of $384 million…
- ARGAN's second quarter highlights include consolidated gross margin of 19.3%, record net income of $53.3 million or $3.76 per diluted...
- ARGAN is pleased to keep the backlog over $2.5 billion despite not adding any major power projects in the quarter,...
- ARGAN did say it expects to add a handful of new projects over the next 7 to 15 months, and...
- Just to the construction on that facility is going really well, and ARGAN expects to have that complete in Q3,...
Faded since Q1 2026
- Fading Its balance sheet remains strong, and ARGAN generated substantial cash flow in the first quarter.
- Fading Quarter revenues increased 50% to $291 million as compared to $194 million for the first quarter of fiscal 2026,...
- Fading Yes, when you're able to achieve early substantial completion on your jobs like ARGAN did last quarter with Trumbull and...
- Fading Visibility into where ultimate margins end up is dependent on a lot of factors.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Other events · SEC 8-K
Argan, Inc. declared a 40% increase in its quarterly cash dividend, raising it from $0.50 to $0.70 per common share.
- Results of operations · SEC 8-K
Argan, Inc. reported revenue of $384 million and net income of $53.3 million for the quarter ended July 31, 2026, compared to $237.7 million and $35.3 million in the same period of 2025.
- Other events · SEC 8-K
Argan's subsidiary, Southern Maryland Cable Inc., completed the acquisition of ValCor Communications, LLC for approximately $8.3 million in cash and common stock on July 31, 2026.
- Shareholder vote results; Other events · SEC 8-K
Argan, Inc. shareholders elected nine board members, approved executive compensation, ratified Grant Thornton LLP as auditors, and the board declared a quarterly cash dividend of $0.50 per share.
- Results of operations · SEC 8-K
Argan reported revenue of $291.0 million for the first quarter of fiscal 2027, an increase of 50.2% compared to $193.7 million in the same period of the previous year.
- Other events · SEC 8-K
Argan, Inc. declared a $0.50 quarterly cash dividend and increased its share repurchase program from $150 million to $200 million with an expiration date extended to January 31, 2030.
- Results of operations · SEC 8-K
- Other events · SEC 8-K
Argan, Inc. declared a regular quarterly cash dividend of $0.50 per share, which represents a 33% increase from the previous quarterly dividend amount.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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through January 31, 2030
buyback program expiration date
Source quote
“We have an active and opportunistic buyback program in place, which we increased during the first quarter to $200 million from $150 million, while also extending the program's expiration date through January 31, 2030.”
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over the next 10 to 18 months
add a handful of new projects
Source quote
“As I discussed on our last call, we expect to add a handful of new projects over the next 10 to 18 months.”
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later this year
complete construction on an additional fabrication facility in North Carolina
Source quote
“In support of this project and to better position the company to address new opportunities, we have begun construction on an additional fabrication facility in North Carolina, which we expect to complete later this year.”
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during the first quarter
substantial completion on the final project of our three-part Midwest solar and battery projects
Source quote
“Additionally, during the first quarter, we reached substantial completion also ahead of schedule on the final project of our three-part Midwest solar and battery projects.”
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January 31, 2030
expiration date for the share buyback program
Source quote
“And during the first quarter of fiscal year 2027, our Board increased the total repurchase authorization to $200 million and extended the expiration date through January 31, 2030.”