Argan’s Record Fiscal 2026: Backlog Surges to $2.9 Billion Amidst Strong Profitability and Growth
All-Time Highs in Revenue, Margins, and Backlog Mark an Exceptional Year
Argan, Inc. (NYSE: AGX) delivered record-setting performance for both its fourth quarter and fiscal year ending January 31, 2026, driven by robust execution across all business segments and a historic jump in project backlog. With consolidated backlog doubling year-over-year to $2.93 billion, the outlook for further growth remains positive as demand for new power infrastructure continues to accelerate.
Strong Top and Bottom-Line Results Support Momentum
For the fourth quarter, Argan reported revenues of $262.05 million, up 12.7% from a year earlier. Gross margin expanded sharply to 25.0%, buoyed by strong project execution, including the early completion of key projects like the Trumbull Energy Center. Net income rose to $49.21 million, with diluted earnings per share (EPS) at $3.47. The company’s quarterly EBITDA hit $55.98 million, or 21.4% of revenues—up 4.5 percentage points from the prior year.
| Q4 Metric | 2026 | 2025 | Change |
|---|---|---|---|
| Revenue ($M) | 262.05 | 232.47 | +29.58 |
| Gross Margin (%) | 25.0 | 20.5 | +4.5 |
| Net Income ($M) | 49.21 | 31.37 | +17.84 |
| Diluted EPS ($) | 3.47 | 2.22 | +1.25 |
| EBITDA ($M) | 55.98 | 39.26 | +16.72 |
| EBITDA Margin (%) | 21.4 | 16.9 | +4.5 |
Fiscal Year Records: Profit and Margin Expansion
Full-year revenues reached $944.61 million, an 8% increase over the prior year. Gross profit advanced to $193.68 million, representing a margin of 20.5%, while net income jumped more than 61% to $137.77 million. Diluted EPS climbed to $9.74. The year saw EBITDA surge to $162.80 million as the business captured higher-margin project wins and continued strong cash flow generation.
| Fiscal Year Metric | 2026 | 2025 | Change |
|---|---|---|---|
| Revenue ($M) | 944.61 | 874.18 | +70.43 |
| Gross Margin (%) | 20.5 | 16.1 | +4.4 |
| Net Income ($M) | 137.77 | 85.46 | +52.31 |
| Diluted EPS ($) | 9.74 | 6.15 | +3.59 |
| EBITDA ($M) | 162.80 | 113.50 | +49.30 |
| EBITDA Margin (%) | 17.2 | 13.0 | +4.2 |
| Cash Dividends per Share ($) | 1.75 | 1.35 | +0.40 |
Backlog and Cash Growth Point to Future Strength
Perhaps most noteworthy is the dramatic rise in project backlog, which grew by $1.57 billion year-over-year to $2.93 billion as of January 31, 2026. This reflects $2.5 billion in new contract value during the year, highlighting strong demand for Argan’s expertise in power and infrastructure construction. Cash and investments also reached a new high of $894.98 million, more than $369 million higher than a year ago, and net liquidity improved to $421.0 million. Importantly, Argan reported no debt on its balance sheet, enabling flexibility to capture future opportunities.
| Balance Sheet Metric | 2026 | 2025 | Change |
|---|---|---|---|
| Cash, Equivalents & Investments ($M) | 894.98 | 525.14 | +369.84 |
| Net Liquidity ($M) | 421.00 | 301.44 | +119.56 |
| Project Backlog ($M) | 2,929.00 | 1,361.00 | +1,568.00 |
Industry Tailwinds and Commentary
Argan’s CEO David Watson highlighted industry shifts such as the electrification of infrastructure, rising demand from AI and data centers, and the need to upgrade aging power grids—all of which create strong long-term opportunities. The company’s proven track record in large, complex power generation projects and disciplined approach are core differentiators as competition heats up in the sector.
Takeaway: Positioned for Growth With Robust Backlog and Financial Flexibility
Argan’s latest results underscore resilience and opportunity. With record backlog, strong liquidity, and no debt, the company is structurally well-positioned to benefit from industry trends in power and infrastructure. Investors may wish to watch for continued updates as the existing backlog converts into revenue—and as management pursues additional high-margin contracts in a dynamic landscape.
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