Key Takeaways
- Pre-market trading saw AGX surge approximately 10% following quarterly earnings per share of $3.47, surpassing the Street’s $2.13 projection by a substantial $1.34
- Quarterly revenue reached $262.1M, marking a 12.7% annual increase despite landing marginally under the $271M forecast
- Fiscal 2026 delivered EPS of $9.74 versus $6.15 in the previous fiscal year; gross profit margin improved to 25% from 20.5%
- Contract backlog climbed to $2.9B from $1.4B twelve months prior following $2.5B in freshly secured agreements
- Argan closed the fiscal period with $895M in cash reserves and a debt-free balance sheet; fiscal 2027 revenue projection of $415M–$440M exceeded the Street’s $385.68M expectation
Argan delivered fourth-quarter adjusted earnings per share of $3.47, significantly outperforming Wall Street’s $2.13 consensus forecast. The $1.34 beat represents the kind of outperformance that typically captures market attention.
Quarterly revenue landed at $262.1 million, representing a 12.7% increase from the $232.5 million generated during the comparable quarter last year. While the figure came in below analyst expectations of $271 million, market participants appeared far more impressed with the bottom-line performance.
Gross profitability improved to 25% during the quarter, compared with 20.5% in the year-ago period. Net earnings climbed to $49.2 million versus $31.4 million reported in the prior-year quarter.
Chief Executive David Watson characterized the period as a “record fourth quarter” that concluded what he termed a year marked by exceptional operational performance. The annual figures supported his assessment.
For the complete fiscal 2026 period, Argan generated revenue of $944.6 million, an 8.1% year-over-year advancement. Annual earnings per share reached $9.74, climbing from $6.15 in fiscal 2025. EBITDA expanded to $162.8 million compared with $113.5 million in the preceding year.
The most impressive metric may well be the contract backlog. It surged to roughly $2.9 billion as of January 31, 2026, up from $1.4 billion one year earlier. This expansion followed the addition of $2.5 billion in new contracted work throughout fiscal 2026.
Watson attributed the contract wins to robust demand stemming from artificial intelligence data center development, broader electrification initiatives, and the need to replace outdated power generation facilities.
Financial Position and Shareholder Returns
Argan concluded the fiscal year with a robust financial foundation. Cash, cash equivalents, and investments totaled $895 million, up considerably from $525.1 million in the prior year. Net liquidity stood at $421 million.
The balance sheet carries zero debt obligations.
Additionally, the company increased its quarterly dividend payment to $0.50 per share during fiscal 2026, marking the third straight year of dividend growth.
A significant factor supporting fourth-quarter profitability was reaching substantial completion at the Trumbull Energy Center ahead of schedule—a development that contributed to enhanced gross margin performance during the period.
Fiscal 2027 Projections
For the coming fiscal year, Argan provided revenue guidance ranging from $415 million to $440 million. This outlook exceeds the analyst consensus estimate of $385.68 million.
Adjusted EBITDA for fiscal 2027 is projected to fall between $0 and $10 million. CFO Baugher indicated it remains premature to provide detailed gross margin guidance for the upcoming year.
Management anticipates securing additional project awards over the next 12 to 20 months.
AGX shares traded around $450 during pre-market hours on March 27, reflecting an approximate 10% gain for the session. The equity had already demonstrated momentum, advancing roughly 12.6% over the preceding month and approximately 3.15% during the past week.
