Download PDF

1. Company Snapshot

1.a. Company Description

Argan, Inc., through its subsidiaries, provides engineering, procurement, construction, commissioning, operations management, maintenance, project development, technical, and consulting services to the power generation and renewable energy markets.The company operates through Power Industry Services, Industrial Fabrication and Field Services, and Telecommunications Infrastructure Services segments.The Power Industry Services segment offers engineering, procurement, and construction contracting services to the owners of alternative energy facilities, such as biomass plants, wind farms, and solar fields; and design, construction, project management, start-up, and operation services for projects with approximately 15 gigawatts of power-generating capacity.


This segment serves independent power project owners, public utilities, power plant equipment suppliers, and energy plant construction companies.The Industrial Fabrication and Field Services segment provides industrial field, and pipe and vessel fabrication services for forest products, industrial gas, fertilizer, and mining companies in southeast region of the United States.The Telecommunications Infrastructure Services segment offers trenchless directional boring and excavation for underground communication and power networks, as well as aerial cabling services; and installs buried cable, high and low voltage electric lines, and private area outdoor lighting systems.


It also provides structured cabling, terminations, and connectivity that offers the physical transport for high-speed data, voice, video, and security networks.This segment serves state and local government agencies, regional communications service providers, electric utilities, and other commercial customers, as well as federal government facilities comprising cleared facilities in the mid-Atlantic region of the United States.Argan, Inc.


was incorporated in 1961 and is headquartered in Rockville, Maryland.

Show Full description

1.b. Last Insights on AGX

Argan, Inc.'s recent performance is driven by robust growth in its Power Industry Services segment, fueled by an 88.7% year-over-year surge in project backlog to $1.95 billion. Demand from AI, data centers, EV infrastructure, and renewable energy projects is a key growth driver. The company has a solid position to capitalize on power generation demand, with a record backlog and a zero-debt balance sheet. Analysts have a "Moderate Buy" consensus rating, with a price target of $258.20. Cwm LLC also increased its holdings in Argan by 5.8% in Q2.

1.c. Company Highlights

2. Argan's Q3 2026 Earnings: A Strong Backlog and Growing Profitability

Argan, Inc. reported revenue of $251.2 million for the third quarter of 2026, a 2% decrease from the prior year period, primarily due to the timing of certain projects. However, revenue increased 6% sequentially from the second quarter. Gross margin improved to 18.7% compared to 17.2% in the prior year period. Net income was $31 million or $2.17 per diluted share, beating analyst estimates of $1.82. EBITDA was $40.3 million or 16% of revenue.

Publication Date: Dec -07

📋 Highlights
  • Record Backlog:: $3 billion backlog (~6 GW of new power projects), including 1.4 GW CPB Basin Ranch and 816 MW Texas project.
  • Revenue & Margins:: $251.2M revenue (-2% YoY, +6% QoQ), gross margin improved to 18.7% (vs. 17.2% prior year).
  • Strong Profitability:: Net income $31M ($2.17/share), EBITDA $40.3M (16% of revenue), $727M cash/investments, no debt.
  • Dividend & Shareholder Returns:: 33% dividend increase to $0.50/share (annual $2/share), $32M returned to shareholders YTD 2026.
  • Strategic Growth Focus:: 10–12 labor teams, targeting large CCGT projects (>1 GW), exploring M&A, and expanding in Texas/PJM regions.

Strong Backlog and Growth Prospects

The company has a record backlog of approximately $3 billion, representing over six gigawatts of new thermal and renewable power plants. Argan added several new projects to its backlog, including the 1.4 gigawatt CPB Basin Ranch project and an 816 megawatt project in Texas. Management discussed their strategy to drive growth, improve project management effectiveness, and minimize costly project overruns. The company expects continued long-term growth and profitability driven by the increasing demand for new power resources to support the grid.

Margin Expansion and Cost Management

Argan's gross margin has expanded due to its focus on project management effectiveness and minimizing costly project overruns. The company remains intentionally conservative with its guidance, citing an 18% range as a possible target for fiscal year '27 gross margins. With an 18.8% gross margin over the year to date, the company has exceeded its 16% benchmark.

Valuation and Dividend Yield

With a P/E Ratio of 36.17 and an EV/EBITDA of 31.07, Argan's valuation multiples indicate a premium for its growth prospects. The company's dividend yield is 0.52%, with a quarterly dividend increased by 33% to 50¢ per common share. The ROE of 31.38% and ROIC of 23.17% demonstrate the company's ability to generate strong returns on equity and invested capital. Analysts estimate next year's revenue growth at 13.0%, which may justify the current valuation multiples.

Operational Capacity and Future Opportunities

Argan is growing its headcount to take on more work, with a labor capacity of around 10 to 12 teams. The company is being creative in deploying its talent, optimizing leaders across multiple jobs, and growing its teams to meet customer needs. Argan is seeing opportunities for larger projects, with some averaging over 1 gigawatt each, particularly in Texas, the PJM region, and other areas, including West Virginia and the Eastern Seaboard.

3. NewsRoom

Card image cap

Bosun Asset Management LLC Cuts Holdings in Argan, Inc. $AGX

Dec -07

Source: defenseworld.net

Card image cap

Argan (NYSE:AGX) Trading Down 14% – What’s Next?

Dec -07

Source: defenseworld.net

Card image cap

Why Argan Stock Plummeted by 12% Today

Dec -05

Source: fool.com

Card image cap

Argan, Inc. (AGX) Q3 2026 Earnings Call Transcript

Dec -05

Source: seekingalpha.com

Card image cap

Argan (AGX) Beats Q3 Earnings and Revenue Estimates

Dec -04

Source: zacks.com

Card image cap

Argan, Inc. Reports Third Quarter Fiscal 2026 Results

Dec -04

Source: businesswire.com

Card image cap

Is Argan (AGX) Stock Outpacing Its Construction Peers This Year?

Dec -04

Source: zacks.com

Card image cap

Best Momentum Stocks to Buy for Dec.3

Dec -03

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.42%)

6. Segments

Power

Expected Growth: 8.3%

Power from Argan, Inc.'s 8.3% growth driven by increasing demand for renewable energy, expansion into new markets, and strategic acquisitions. Additionally, government incentives and tax credits for clean energy projects, as well as declining costs of wind and solar energy, contribute to the company's growth momentum.

Industrial

Expected Growth: 4.83%

Argan's Industrial segment growth of 4.83% is driven by increasing demand for engineering and construction services in the power generation and renewable energy markets, as well as the company's strategic acquisitions and expansion into new geographic regions.

Telecom

Expected Growth: 7.77%

Argan's Telecom segment growth of 7.77% is driven by increasing demand for 5G infrastructure, growing need for network densification, and rising adoption of IoT devices. Additionally, the company's focus on providing engineering and construction services for wireless network infrastructure, and its strategic acquisitions, have contributed to its growth momentum.

7. Detailed Products

Power Generation Systems

Argan, Inc. provides power generation systems that offer reliable and efficient power solutions for various industries.

Combined Heat and Power (CHP) Systems

Argan, Inc. offers CHP systems that generate both electricity and thermal energy from a single fuel source.

Biomass-Based Renewable Energy Systems

Argan, Inc. provides biomass-based renewable energy systems that convert organic waste into electricity and heat.

Energy Storage Systems

Argan, Inc. offers energy storage systems that store excess energy for later use, reducing peak demand and energy costs.

Engineering, Procurement, and Construction (EPC) Services

Argan, Inc. provides EPC services for the design, construction, and commissioning of power generation and energy storage projects.

8. Argan, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Argan, Inc. is medium due to the availability of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers for Argan, Inc. is high due to the concentration of buyers in the market.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Argan, Inc. is low due to the availability of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Argan, Inc. is medium due to the moderate barriers to entry in the market.

Intensity Of Rivalry

The intensity of rivalry for Argan, Inc. is high due to the high level of competition in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.80%
Debt Cost 3.95%
Equity Weight 98.20%
Equity Cost 6.00%
WACC 5.96%
Leverage 1.83%

11. Quality Control: Argan, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Argan

A-Score: 5.3/10

Value: 1.2

Growth: 8.7

Quality: 7.2

Yield: 2.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Willdan

A-Score: 4.8/10

Value: 2.1

Growth: 7.4

Quality: 6.4

Yield: 0.0

Momentum: 10.0

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Tutor Perini

A-Score: 4.6/10

Value: 5.9

Growth: 4.7

Quality: 4.4

Yield: 0.0

Momentum: 9.5

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Orion Holdings

A-Score: 4.4/10

Value: 5.2

Growth: 5.7

Quality: 4.2

Yield: 0.0

Momentum: 9.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
NV5 Global

A-Score: 4.3/10

Value: 4.1

Growth: 5.0

Quality: 5.3

Yield: 0.0

Momentum: 4.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Limbach Holdings

A-Score: 4.2/10

Value: 1.7

Growth: 8.0

Quality: 6.7

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

317.51$

Current Price

317.51$

Potential

-0.00%

Expected Cash-Flows