TLDR
- AGX jumped ~10% in pre-market after Q4 EPS of $3.47 beat the $2.13 consensus by $1.34
- Q4 revenue came in at $262.1M, up 12.7% year-over-year but slightly below the $271M estimate
- Full-year FY26 EPS hit $9.74 vs $6.15 in FY25; gross margin expanded to 25% from 20.5%
- Project backlog surged to $2.9B from $1.4B a year ago after $2.5B in new contracts
- The company ended the year with $895M in cash and zero debt; FY27 revenue guidance of $415M–$440M beat the $385.68M consensus
Argan posted Q4 adjusted EPS of $3.47, well ahead of the $2.13 analyst estimate. That’s a beat of $1.34 per share — not the kind of number that goes unnoticed.
Q4 revenue came in at $262.1 million, up 12.7% from $232.5 million in the same period last year. It did fall short of the $271 million estimate, but investors clearly focused on the profit story.
$AGX | Q4 2026 Earnings
EPS: $3.47
Revenue: $262.1M
Net Income: $49.2MARGAN INC
— Earnings Alert (@EarningAlerts) March 26, 2026
Gross profit margin expanded to 25% in Q4, up from 20.5% a year ago. Net income reached $49.2 million, compared to $31.4 million in the prior-year quarter.
CEO David Watson called it a “record fourth quarter” that capped what he described as a year of strong execution. The full year backed that up.
For FY26, Argan reported revenue of $944.6 million, up 8.1% year-over-year. Full-year EPS came in at $9.74, up from $6.15 in FY25. EBITDA rose to $162.8 million from $113.5 million the prior year.
The standout number may be the backlog. It jumped to approximately $2.9 billion as of January 31, 2026, from $1.4 billion a year earlier. That growth came after the company added $2.5 billion in new contract value during FY26.
Watson pointed to strong demand from AI data center construction, electrification trends, and aging power infrastructure as drivers behind the new contract wins.
Balance Sheet and Dividend
Argan ended the year in a strong cash position. The company held $895 million in cash, cash equivalents, and investments, up from $525.1 million a year ago. Net liquidity stood at $421 million.
There is no debt on the balance sheet.
The company also raised its quarterly dividend to $0.50 per share in FY26, the third consecutive year of increases.
One key contributor to Q4 profitability was the early achievement of substantial completion at the Trumbull Energy Center — a milestone that helped lift gross margins for the quarter.
FY27 Outlook
Looking ahead, Argan issued FY27 revenue guidance of $415 million to $440 million. That range sits above the analyst consensus of $385.68 million.
Adjusted EBITDA for FY27 is expected in the range of $0 to $10 million. CFO Baugher noted it is still too early to give a clear view on FY27 gross margins.
The company expects to add new projects over the next 12 to 20 months.
AGX was trading near $450 in pre-market on March 27, up roughly 10% on the session. The stock had already been moving higher, up around 12.6% over the prior month and about 3.15% over the past week.
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