Argan Shares Surge After Strong Q4 Earnings and Revenue Beat

Argan Inc. (AGX) shares jumped 13% in after-hours trading on Thursday, closing at $129.99, following the company’s release of impressive fourth-quarter results. The performance was fueled by surging demand in its Power Industry Services segment and a growing project backlog, reflecting broader industry trends toward electrification and infrastructure modernization.

Over the past 12 months, Argan shares have gained an outstanding 128%, far outperforming the broader industrial sector.

📊 Q4 Financial Highlights

• Net income: $31.4 million vs. $12 million YoY

• Earnings per share (EPS): $2.22 vs. $0.89 YoY

• Revenue: $232.5 million vs. $164.6 million YoY

• Revenue growth: +41% YoY

• Earnings beat estimates by $1.07; revenue beat by $34.97 million

The fourth quarter marked Argan’s strongest revenue performance since 2017, driven by double-digit growth across several key business units.

🔧 Power Industry Demand Driving Results

The standout performer was Argan’s Power Industry Services segment, which saw a 65% year-over-year increase in sales. This business unit, which accounts for a significant portion of the company’s overall revenue, specializes in the engineering, procurement, and construction (EPC) of various energy facilities, including:

• Natural gas-fired power plants

• Solar fields

• Biomass and wind energy projects

The company reported a growing project backlog of $1.4 billion, boosted by recent contracts including:

• A combined-cycle natural gas plant in the U.S.

• A biofuel-powered facility in Ireland

• A newly signed deal for an ultra-efficient natural gas plant in Texas

Argan attributed the momentum to long-term industry trends such as:

• Accelerated electrification

• Aging infrastructure in need of replacement

• Underinvestment in natural gas generation assets

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🚀 Positioned for Future Growth

The company emphasized that demand for new power infrastructure is at unprecedented levels, driven by structural shifts such as the global AI revolution, vehicle electrification, and the transition from legacy power systems to more efficient alternatives.

Argan has also been actively expanding its footprint in the renewable energy sector, aligning its long-term strategy with the industry’s shift toward cleaner and more sustainable energy solutions.

🏗️ Company Overview: Argan, Inc. (AGX)

Founded in 1961 and headquartered in Arlington, VA, Argan operates through four subsidiaries across three main business segments:

1. Power Industry Services (77% of revenue)

• EPC services for energy facilities in the U.S., Ireland, and the UK

• Includes natural gas, solar, biomass, and wind projects

2. Industrial Construction Services (22% of revenue)

• On-site construction services for multiple sectors in the U.S. Southeast

3. Telecommunication & Infrastructure Services (<2% of revenue)

• Power distribution and communication infrastructure for government and commercial clients

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📈 Why Investors Are Watching

Argan continues to demonstrate strong fundamentals, a diversified revenue base, and exposure to both traditional and renewable energy markets. With a robust backlog, expanding capabilities, and exposure to megatrends in energy transformation, Argan is positioned to benefit from ongoing shifts in global infrastructure investment.

✅ Stay tuned for more earnings coverage, market analysis, and top-performing stocks shaping the energy and infrastructure sectors.

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Past performance is not indicative of future results. All investments carry risk, including the potential loss of capital.