TLDR

  • AGX climbed approximately 10% in pre-market trading following Q4 EPS of $3.47, exceeding the $2.13 consensus estimate by $1.34
  • Q4 revenue reached $262.1M, representing 12.7% year-over-year growth while landing modestly under the $271M forecast
  • Full-year FY26 EPS reached $9.74 compared to $6.15 in FY25; gross margin grew to 25% from 20.5%
  • Project backlog expanded to $2.9B from $1.4B year-over-year following $2.5B in newly secured contracts
  • The company closed the year holding $895M in cash with no outstanding debt; FY27 revenue guidance of $415M–$440M exceeded the $385.68M consensus

Argan delivered Q4 adjusted EPS of $3.47, significantly surpassing the $2.13 analyst forecast. The beat of $1.34 per share represents the kind of outperformance that captures investor attention immediately.


AGX Stock Card
Argan, Inc., AGX

Q4 revenue totaled $262.1 million, marking a 12.7% increase from $232.5 million during the comparable period last year. While the figure came in below the $271 million estimate, market participants concentrated on the company’s profitability trajectory.

Gross profit margin improved to 25% in Q4, advancing from 20.5% during the year-ago period. Net income totaled $49.2 million, compared with $31.4 million in the corresponding quarter.

CEO David Watson characterized the quarter as “record” performance, concluding what he termed a year of solid operational execution. The annual results validated that assessment.

For FY26, Argan posted revenue of $944.6 million, reflecting 8.1% year-over-year expansion. Full-year EPS landed at $9.74, advancing from $6.15 in FY25. EBITDA grew to $162.8 million from $113.5 million in the preceding year.

The backlog figure stands out among the financial metrics. It soared to approximately $2.9 billion as of January 31, 2026, compared with $1.4 billion one year prior. This expansion followed the addition of $2.5 billion in new contract value throughout FY26.

Watson highlighted robust demand stemming from AI data center construction, electrification initiatives, and deteriorating power infrastructure as catalysts for the new contract awards.

Balance Sheet and Dividend

Argan concluded the year with considerable financial strength. The company maintained $895 million in cash, cash equivalents, and investments, advancing from $525.1 million one year earlier. Net liquidity reached $421 million.

The balance sheet carries zero debt obligations.

The company increased its quarterly dividend to $0.50 per share in FY26, marking the third straight year of dividend growth.

One significant factor supporting Q4 profitability involved the early achievement of substantial completion at the Trumbull Energy Center—a milestone that boosted gross margins during the quarter.

FY27 Outlook

Looking forward, Argan provided FY27 revenue guidance spanning $415 million to $440 million. This projection exceeds the analyst consensus of $385.68 million.

Adjusted EBITDA for FY27 is projected in the range of $0 to $10 million. CFO Baugher acknowledged that providing clear visibility on FY27 gross margins remains premature at this stage.

The company anticipates securing additional projects throughout the next 12 to 20 months.

AGX traded near $450 in pre-market hours on March 27, gaining roughly 10% during the session. The stock had already demonstrated upward momentum, advancing around 12.6% over the preceding month and approximately 3.15% during the past week.