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olivLaw · US equity research

Argan, Inc. AGX

Construction - Special Trade Contractors · SIC 1700 · Vertical: Construction - Special Trade Contractors (SIC 1700)

290.66USD−16.53% · 1 dayClose 04 Nov 2026

Argan, Inc. is an engineering and construction firm with three segments, Power, Industrial and Teledata, led by natural gas power plant projects. Driven by data-center power demand and tight generation capacity, the company reported record second-quarter fiscal 2027 revenue of 384 million USD, and its backlog stood at 2.518 billion USD on 31 July 2026.

At the close of 04 Nov 2026, Argan, Inc. (AGX) stock was 290.66 USD (−16.53% on the day), with market capitalisation 4.1 bn USD, P/E 23.0 on diluted EPS of 12.64 USD over the last 12 months, dividend yield 0.69%, beta 1.64, 52-week range 290.66–798.55 USD. Latest reported quarter (Q2 2027): revenue of 384.0 m USD (+61.5% YoY), net income of 53.3 m USD (+51.1% YoY), diluted EPS 3.76 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
4.1 bn USD
shares as of 28 Aug 2026
P/E (TTM)
23.0
Diluted EPS TTM 12.64 · TTM to 31 Jul 2026
E/P (TTM)
4.35%
TTM to 31 Jul 2026
Dividend yield
0.69%
DPS 12m 2.00
Beta (2y)
1.64
Volatility (1y) 77%
52-week range
290.66798.55

Price history

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Technical reading

RSI (14)
30.0
weak (30–45)
Bollinger (20, 2)
302.46 – 403.05
below the lower band · %B -0.12 · band width 28.5%
SMA 50 / 200
379.85 / 520.31
downtrend (price < SMA50 < SMA200)
MACD (12, 26, 9)
-18.64 / -17.54
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−25.0%−1.1%−23.9 pp—
3 months−51.7%−0.5%−51.3 pp—
6 months−60.0%+4.4%−64.4 pp—
Year to date−7.2%+12.3%−19.5 pp—
1 year−4.1%+13.5%−17.7 pp−55.4%
3 years+544.1%+76.4%+467.6 pp−29.1%
5 years+539.7%+63.7%+476.0 pp—
Max drawdown (1y)
−63.6%
30 Jun 2026 → 04 Nov 2026
Max drawdown (5y)
−63.6%
30 Jun 2026 → 04 Nov 2026
Compound annual growth (5y)
+44.9%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2027 · 31 Jul 2026

Revenue
384.0 m USD
+61.5% YoY
Net income
53.3 m USD
+51.1% YoY
Diluted EPS
3.76
+50.4% YoY
net / operating
13.9% / 14.8%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '25Q4 '25Q1 '26Q2 '26Q3 '26Q4 '26Q1 '27Q2 '27
Revenue257.0 m232.5 m193.7 m237.7 m251.2 m262.1 m291.0 m384.0 m
Cost of revenue212.7 m184.9 m156.8 m193.5 m204.2 m196.5 m229.8 m309.8 m
Gross profit44.3 m47.6 m36.9 m44.3 m46.9 m65.6 m61.1 m74.2 m
SG&A14.0 m14.9 m12.5 m14.2 m14.3 m17.9 m15.7 m17.4 m
Operating income30.3 m32.7 m24.3 m30.1 m32.6 m47.7 m45.4 m56.8 m
Pre-tax income37.0 m38.6 m29.8 m35.6 m39.7 m55.4 m53.8 m66.9 m
Income tax9.0 m7.3 m7.2 m361.0 k9.0 m6.2 m7.7 m13.6 m
Net income28.0 m31.4 m22.6 m35.3 m30.7 m49.2 m46.1 m53.3 m
Diluted EPS2.002.22 ≈1.602.502.173.47 ≈3.243.76
Operating cash flow31.8 m ≈44.6 m35.3 m34.6 m ≈172.5 m ≈172.3 m113.4 m97.0 m ≈
Capex2.5 m ≈1.4 m395.0 k1.7 m ≈583.0 k ≈1.2 m2.4 m5.3 m ≈
Dividends paid5.2 m ≈5.0 m5.1 m5.2 m ≈7.1 m ≈7.0 m7.0 m7.0 m ≈
Share repurchases459.0 k ≈878.0 k6.8 m199.0 k ≈0 ≈2.8 m3.0 m6.7 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 67 percentile of its own 36-quarter history (min 9.5, median 19.3, max 457.2; quarters with earnings only).

Fiscal years

Fiscal year20192020202120222023202420252026
Revenue482.2 m239.0 m392.2 m509.4 m455.0 m573.3 m874.2 m944.6 m
Revenue YoY−46.0%−50.4%+64.1%+29.9%−10.7%+26.0%+52.5%+8.1%
Net income52.0 m-42.7 m23.9 m38.2 m33.1 m32.4 m85.5 m137.8 m
Net income YoY−27.7%−182.0%unavailable+60.3%−13.5%−2.2%+164.1%+61.2%
Diluted EPS3.32-2.731.512.402.332.396.159.74
Diluted EPS YoY−27.2%−182.2%unavailable+58.9%−2.9%+2.6%+157.3%+58.4%
net %10.8%-17.9%6.1%7.5%7.3%5.6%9.8%14.6%
Free cash flow-120.9 m46.5 m174.3 m27.0 m-33.4 m114.1 m161.0 m410.8 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2026 · 31 Jan 2026

Cash
339.5 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
462.3 m USD
Total assets
1.2 bn USD
Debt / equity
unavailable
Current ratio
1.59x
ROE
33.8%
ROA
13.6%
FCF margin
43.5%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2024
573.3 m
2025
874.2 m
2026
944.6 m

SEC (XBRL)· 26 Mar 2026verified

Cost of revenue
2024
492.5 m
2025
733.2 m
2026
750.9 m

SEC (XBRL)· 26 Mar 2026verified

Gross profit
2024
80.8 m
2025
141.0 m
2026
193.7 m

SEC (XBRL)· 26 Mar 2026verified

SG&A
2024
44.4 m
2025
52.8 m
2026
59.0 m

SEC (XBRL)· 26 Mar 2026verified

Operating income
2024
36.5 m
2025
88.2 m
2026
134.7 m

SEC (XBRL)· 26 Mar 2026verified

Pre-tax income
2024
48.9 m
2025
111.2 m
2026
160.5 m

SEC (XBRL)· 26 Mar 2026verified

Income tax
2024
16.6 m
2025
25.7 m
2026
22.7 m

SEC (XBRL)· 26 Mar 2026verified

Net income
2024
32.4 m
2025
85.5 m
2026
137.8 m

SEC (XBRL)· 26 Mar 2026verified

Diluted EPS
2024
2.39
2025
6.15
2026
9.74

SEC (XBRL)· 26 Mar 2026verified

Weighted average diluted shares
2024
13.5 m
2025
13.9 m
2026
14.1 m

SEC (XBRL)· 26 Mar 2026verified

Dividend per share
2024
1.10
2025
1.35
2026
1.75

SEC (XBRL)· 26 Mar 2026verified

Balance sheet · USD

Cash
2024
197.0 m
2025
145.3 m
2026
339.5 m

SEC (XBRL)· 26 Mar 2026verified

Receivables
2024
47.3 m
2025
175.8 m
2026
133.7 m

SEC (XBRL)· 26 Mar 2026verified

Current assets
2024
547.2 m
2025
781.3 m
2026
1.1 bn

SEC (XBRL)· 26 Mar 2026verified

Property, plant & equipment, net
2024
11.0 m
2025
14.5 m
2026
16.6 m

SEC (XBRL)· 26 Mar 2026verified

Goodwill
2024
28.0 m
2025
28.0 m
2026
28.0 m

SEC (XBRL)· 26 Mar 2026verified

Intangibles (excl. goodwill)
2024
2.2 m
2025
1.8 m
2026
1.5 m

SEC (XBRL)· 26 Mar 2026verified

Total assets
2024
598.2 m
2025
836.2 m
2026
1.2 bn

SEC (XBRL)· 26 Mar 2026verified

Accounts payable
2024
39.5 m
2025
97.3 m
2026
107.5 m

SEC (XBRL)· 26 Mar 2026verified

Current liabilities
2024
302.3 m
2025
479.9 m
2026
711.3 m

SEC (XBRL)· 26 Mar 2026verified

Total liabilities
2024
307.3 m
2025
484.4 m
2026
724.1 m

SEC (XBRL)· 26 Mar 2026verified

Equity
2024
290.9 m
2025
351.9 m
2026
462.3 m †

SEC (XBRL)· 26 Mar 2026verified

Cash flow · USD

Operating cash flow
2024
116.9 m
2025
167.6 m
2026
414.7 m

SEC (XBRL)· 26 Mar 2026verified

Capex
2024
2.8 m
2025
6.6 m
2026
3.9 m

SEC (XBRL)· 26 Mar 2026verified

Free cash flow
2024
114.1 m ≈
2025
161.0 m ≈
2026
410.8 m ≈

SEC (XBRL)· 26 Mar 2026derived

Investing cash flow
2024
-67.6 m
2025
-193.6 m
2026
-182.0 m

SEC (XBRL)· 26 Mar 2026verified

Financing cash flow
2024
-26.1 m
2025
-26.1 m
2026
-42.6 m

SEC (XBRL)· 26 Mar 2026verified

Dividends paid
2024
14.7 m
2025
18.3 m
2026
24.3 m

SEC (XBRL)· 26 Mar 2026verified

Share repurchases
2024
12.5 m
2025
1.5 m
2026
9.9 m

SEC (XBRL)· 26 Mar 2026verified

Computed indicators

Growth

Revenue growth (YoY)
8.1%
computed by olivLawFY 2026
Revenue CAGR 3Y
27.6%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
19.2%
computed by olivLawFY 2021 → FY 2026
EBIT growth (YoY)
52.7%
computed by olivLawFY 2026
Net income growth (YoY)
61.2%
computed by olivLawFY 2026
Net income CAGR 3Y
60.9%
computed by olivLawFY 2023 → FY 2026
Net income CAGR 5Y
42.0%
computed by olivLawFY 2021 → FY 2026
EPS growth (YoY)
58.4%
computed by olivLawFY 2026
EPS CAGR 3Y
61.1%
computed by olivLawFY 2023 → FY 2026
EPS CAGR 5Y
45.2%
computed by olivLawFY 2021 → FY 2026
FCF growth (YoY)
155.2%
computed by olivLawFY 2026

Profitability

Gross margin
20.9%
computed by olivLawTTM to 31 Jul 2026
EBITDA margin
unavailable
input data missing
EBIT margin
15.4%
computed by olivLawTTM to 31 Jul 2026
Net margin
15.1%
computed by olivLawTTM to 31 Jul 2026
FCF margin
45.9%
computed by olivLawTTM to 31 Jul 2026

Returns

ROE
39.8%
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
ROA
15.7%
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
ROIC
unavailable
input data missing
ROCE
34.9%
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
Payout ratio (EPS)
15.8%
computed by olivLawTTM to 31 Jul 2026
Payout ratio (FCF)
5.1%
computed by olivLawTTM to 31 Jul 2026

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
unavailable
input data missing

Liquidity

Current ratio
1.5x
computed by olivLawbalance sheet at 31 Jul 2026
Quick ratio
unavailable
input data missing
Cash ratio
0.4x
computed by olivLawbalance sheet at 31 Jul 2026

Cash

Operating cash flow
555.2 m USD
computed by olivLawTTM to 31 Jul 2026
Capital expenditure
9.5 m USD
computed by olivLawTTM to 31 Jul 2026
Free cash flow
545.7 m USD
computed by olivLawTTM to 31 Jul 2026
FCF conversion
304.3%
computed by olivLawTTM to 31 Jul 2026
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
55 days
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
41 days
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
4.1 bn USD
computed by olivLawbalance sheet at 31 Jul 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
22.7x
computed by olivLawTTM to 31 Jul 2026
P/E (TTM)
23.0x
computed by olivLawTTM to 31 Jul 2026
Earnings yield
4.3%
computed by olivLawTTM to 31 Jul 2026
P/B
8.0x
computed by olivLawbalance sheet at 31 Jul 2026
P/S
3.4x
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
7.5x
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
FCF yield
13.4%
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
Dividend yield
0.7%
computed by olivLawTTM to 31 Jul 2026
Shareholder yield (distributions)
1.0%
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026

Risk

Altman Z
4.88
computed by olivLawbalance sheet at 31 Jul 2026

Valuation

olivLaw classification

Neutral profile

Score: 77 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

290.66 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 4.1 bn USD

Key indicators

Market capitalisation
4.1 bn USD
computed by olivLawbalance sheet at 31 Jul 2026
P/E (TTM)
23.0x
computed by olivLawTTM to 31 Jul 2026
P/B
8.0x
computed by olivLawbalance sheet at 31 Jul 2026
EV/EBITDA
unavailable
input data missing
ROE
39.8%
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
Net margin
15.1%
computed by olivLawTTM to 31 Jul 2026
Revenue growth (YoY)
8.1%
computed by olivLawFY 2026
Dividend yield
0.7%
computed by olivLawTTM to 31 Jul 2026

Coverage and freshness

29/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 31 Jul 2026
Latest balance sheet date: 31 Jul 2026
Share count (cover of the latest filing), as of: 28 Aug 2026
Source: SEC (XBRL)published 02 Sept 2026
verified 2385derived 169

Score by group

  • Valuation62
  • Balance sheet58
  • Quality97
  • Growth100
  • Returns49

Estimated value range

Low
80.71
USD per share
Mid
187.85
USD per share
High
403.91
USD per share
Price: 290.66 USD
The price is within the range
Potential to the central value: -35.4% (value / price − 1)
Margin of safety: -54.7% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 80.71 – 403.91 USD.

Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · input data missing
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: P/E80.71 – 403.91 (Mid 187.85)
    4 companies used · median multiple 14.9x · quartiles 6.4x – 32.0x
    BBCP, LMB, MSGY, RUN
  • Dividend discount (DDM)outside the aggregate23.00 – 30.93 (Mid 26.38)
    a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Multiple comparisons use the SIC vertical: Construction - Special Trade Contractors (SIC 1700)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 77/100

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality15.1%94 (vs peers)10%
FCF conversion · Quality304.3%100 (on a fixed band)10%
Revenue CAGR 3Y · Growth27.6%100 (on a fixed band)13%
EPS CAGR 3Y · Growth61.1%100 (on a fixed band)13%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheet1.5x58 (on a fixed band)7%
P/E (TTM) · Valuation23.0x32 (on a fixed band)17%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation13.4%100 (on a fixed band)13%
Shareholder yield (distributions) · Returns1.0%14 (on a fixed band)10%
Payout ratio (FCF) · Returns5.1%100 (on a fixed band)7%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial58/100 · 1/3 factors with a value
  • Growth100/100 · 2/2 factors with a value
  • Quality97/100 · 2/3 factors with a value
  • Returns49/100 · 2/2 factors with a value
  • Valuation62/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

ARGAN INC (AGX). Latest full fiscal year: 2026; data up to 2026-07-31.

Figures computed from the financial statements: revenue 944.6 m USD in 2026; YoY growth 8.1%; net margin 15.1%; ROE 39.8%.

The estimated value range is 80.71–403.91 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 187.85 USD, the price of 290.66 USD leaves a potential of -35.4% (value / price − 1) and a margin of safety of -54.7% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 77/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Net margin: 15.1%
  • FCF conversion: 304.3%
  • Revenue CAGR 3Y: 27.6%
  • EPS CAGR 3Y: 61.1%
  • FCF yield: 13.4%
  • Payout ratio (FCF): 5.1%

What contradicts it

  • Shareholder yield (distributions): 1.0%

Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA.

Versus the vertical median

Construction - Special Trade Contractors (SIC 1700) · same industry (4-digit SIC) · compared with 18 companies

Multiples and returns vs the median

P/E
23.0x
vertical median 14.9x
above median (+54.7%)
EV/EBITDA
—
vertical median 10.8x
P/S
3.4x
vertical median 0.7x
above median (+361.8%)
P/B
8.0x
vertical median 1.9x
above median (+322.2%)
ROE
39.8%
vertical median -4.7%
above median
Net margin
15.1%
vertical median -4.7%
above median
EBIT margin
15.4%
vertical median -13.5%
above median
Revenue YoY
8.1%
vertical median 8.9%
below median (−9.6%)
Net debt/EBITDA
—
vertical median 0.1x
Dividend yield
0.7%
vertical median —

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
AGXArgan Inc4.1 bn23.039.8%15.1%+8.1%−4% / +544%
BBUCBrookfield Business Corporation2.7 bn—2.4%1.4%−32.4%−11% / +70%
RUNSunrun Inc.2.1 bn4.416.2%14.0%+45.1%−57% / −32%
LMBLimbach Holdings, Inc.681.6 m22.716.0%4.2%+24.7%−18% / +52%
BBCPConcrete Pumping Holdings, Inc.510.5 m59.83.9%2.4%−7.7%+61% / +36%
PHOEPhoenix Asia Holdings Limited401.7 m—-25.9%-16.7%−2.2%+32% / unavailable
MTRXMatrix Service Company258.3 m—-1.8%-0.3%+13.6%−22% / −8%
MSGYMasonglory Limited66.8 m7.0-135.4%-34.0%+1.0%−82% / unavailable
SPWRSunpower Inc.50.5 m——-3.8%+175.9%−86% / −79%
FGLFounder Group Limited24.7 m—-31.9%-5.6%unavailable−100% / unavailable
SMXTSolarMax Technology, Inc.19.5 m——-7.9%+295.8%−63% / unavailable
PMAMing Shing Group Holdings Limited16.9 m——-39.4%−56.8%−23% / unavailable
WXMWF International Limited14.4 m—-71.9%-24.5%−13.7%−62% / unavailable
CETXCemtrex, Inc.1.7 m—-152.4%-38.4%+14.4%−97% / −100%
AMRCAmeresco, Inc.——5.5%3.3%+28.8%−39% / −29%
LGNLegence Corp.——-7.5%-1.2%+21.5%−30% / unavailable
ZEOZeo Energy Corp.0——-15.4%−5.3%−83% / −98%
KAZRSkyline Builders Group Holding Limited——20.6%18.1%+8.9%−54% / unavailable
PBKPOWERBANK Corp——-174.4%-74.7%−28.9%−90% / unavailable

1- and 3-year price returns: for AGX from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
192.07
Total return -33% · Per year -33%
338.01
Total return 17% · Per year 17%
507.01
Total return 75% · Per year 75%
3 years
227.82
Total return -20% · Per year -7%
447.01
Total return 57% · Per year 16%
730.10
Total return 155% · Per year 37%
5 years
270.23
Total return -3% · Per year -1%
591.18
Total return 109% · Per year 16%
1,051.34
Total return 269% · Per year 30%
What moves the 3-year price the most
  • Exit P/E± 111.75
  • Net margin± 78.23
  • Annual revenue growth± 58.34
  • Annual dilution± 6.57

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

Argan, Inc. is an engineering and construction firm with three segments, Power, Industrial and Teledata, led by natural gas power plant projects. Driven by data-center power demand and tight generation capacity, the company reported record second-quarter fiscal 2027 revenue of 3 384 million USD, and its backlog stood at 2.518 billion USD on 31 July 2026 3.

SWOT

Strengths

  • A large backlog, a balance sheet with no debt and substantial liquidity give flexibility to execute large projects 23.
  • Experience in gas-fired EPC projects and the ability to complete complex work are recognized by management 1.
  • Diversification across three segments reduces dependence on a single client type or market 1.

Weaknesses

  • Revenue is concentrated in a small number of large clients and projects, which makes results volatile from quarter to quarter 1.
  • The Industrial and Teledata segments showed weaker performance on certain projects in the recent quarter 3.
  • Long-term projects depend on notices to proceed that are controlled by project owners 1.

Opportunities

  • Demand for power in data centers and for aluminum rolling could generate new contracts in the Industrial segment 13.
  • Extending Teledata into New England through ValCor could open defense and aerospace markets 2.
  • If governments support backup gas capacity, EPC projects could become more numerous in Ireland and the U.K. 1.

Threats

  • Volatility in natural gas prices could reduce demand for new plants and their financing 1.
  • Tariffs and trade uncertainty may raise equipment costs and delay projects 12.
  • Global competition for EPC contracts could reduce market share and margins 1.

Risks

  • Customer concentrationhigh

    A small number of customers generates a significant part of revenue, and losing one could affect results 1.

  • Project delays and cancellationshigh

    Projects can be postponed or cancelled after award, and clients may terminate work while paying only for completed work 1.

  • Accounting estimatesmedium

    Revenue recognized on a cost-to-cost basis depends on estimates, and adjustments can be material 1.

  • Geopolitical and energy risksmedium

    Conflicts in Ukraine and the Middle East can disrupt energy markets and supply chains 1.

  • Artificial intelligence and data securitylow

    Use of AI tools can expose confidential information, and rules in this area are evolving quickly 1.

Investment thesis

What would need to be true (bull case)

  • If data-center power demand and gas capacity keep growing, the high backlog and experience with large projects could support revenue for several years 12.
  • A balance sheet with no debt and substantial liquidity give the company flexibility for acquisitions or capacity investment 3.
  • Gross margin improvement in the latest quarter, driven by the Power project mix, could point to stronger execution 3.

What would break the thesis

  • Revenue concentrated in a few projects and clients means results depend on the timing of a handful of large contracts 1.
  • If gas prices become more volatile or project financing worsens, demand for new plants could fall 1.
  • Backlog declined from the end of fiscal 2026 to July 2026, which could foreshadow lower revenue ahead 3.

What to watch

  • Backlog trend and new Power contractsQ3 fiscal 2027
  • Completion of the new Industrial fabrication facilityQ3 fiscal 2027
  • Power segment gross margins as projects reach peak constructionfiscal 2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

Argan is essentially an engineering and construction firm organized into three reportable segments, each run as an independent subsidiary under holding-company oversight 1. The Power segment provides full EPC services for power projects, mainly natural gas plants, in the U.S., Ireland and the U.K. 1. Industrial provides field services for plants in the Southeast U.S. and fabricates metal components, while Teledata handles telecommunications and data infrastructure, mainly in the Mid-Atlantic region 1. In July 2026 the company acquired ValCor, extending Teledata into New England 2.

Segments

Power

The Power segment generated 756.5 million USD of revenue in fiscal 2026 1, equal to 80.1% of consolidated revenue 1. Its contracts are mostly long-term EPC agreements, and in the second quarter of fiscal 2027 revenue rose 53% year over year to 301 million USD 3.

Industrial

The Industrial segment reported 167.6 million USD of revenue in fiscal 2026 1, about 17.7% of the total 1. The company is building a new fabrication facility, with completion expected next quarter, to serve demand for vessels used in data centers 3.

Market context

U.S. electricity demand has reached its highest level in about two decades, driven by data centers, electrification and reshoring 12. Natural gas remains the main source of utility-scale generation, and the company says gas plants could remain a key part of new capacity 2. However, the market is constrained by the limited number of capable EPC contractors, scarce skilled labor and long development timelines 1.

Trends

  • Data-center power demandtailwind

    The growth of data centers and AI raises demand for new capacity, which the company links to its backlog growth 12. If demand holds, it could support gas-fired EPC projects.

  • Shortage of contractors and equipmentheadwind

    Supply chains and limited turbine manufacturing capacity can delay projects or push them out entirely, affecting schedules 12.

  • Energy policy and regulationmixed

    New programs supporting gas capacity and permitting reforms look favorable, but policy changes could alter project timing and financing 1.

  • Tariffs on materialsheadwind

    Tariffs on steel and aluminum could raise project costs and complicate budgeting and contract negotiations 1.

Competitive position

In Power, Argan competes with large, well-capitalized public and private firms, including global companies, and the number of capable gas-project contractors has declined over the past decade 1. In Industrial and Teledata, competition comes from regional, national and multinational contractors in fragmented markets 1.

  • Global engineering and construction firms

    Large companies with global operations that compete for gas-fired EPC and renewable energy contracts, as described in the annual report 1.

  • Regional construction contractors

    Regional firms in project areas, mainly active in the Industrial and Teledata segments 1.

  • Specialized telecommunications infrastructure contractors

    Regional and national providers serving telecom and data customers in a fragmented market 1.

  • Industrial fabrication and erection firms

    Metal fabrication and industrial contractors that compete on technical expertise and on-schedule delivery 1.

News & filings

In the press

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2026-01-31 · SEC / Argan, Inc. · 26 Mar 2026
  2. [2] Form 10-Q, quarter ended 2026-07-31 · SEC / Argan, Inc. · 02 Sept 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Argan, Inc. · 02 Sept 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.