Key Takeaways
- Shares of AGX climbed approximately 10% in premarket hours following a Q4 EPS of $3.47 that exceeded the $2.13 Wall Street consensus by $1.34
- Fourth quarter revenue reached $262.1M, representing 12.7% year-over-year growth, though marginally under the $271M forecast
- Fiscal year 2026 EPS reached $9.74 compared to $6.15 in FY25; gross margin improved to 25% from the prior year’s 20.5%
- Contract backlog climbed to $2.9B from $1.4B twelve months earlier following $2.5B in newly secured agreements
- Argan closed the fiscal year holding $895M in cash with a debt-free balance sheet; FY27 revenue projections of $415M–$440M surpassed the $385.68M analyst consensus
Argan delivered fourth quarter adjusted earnings per share of $3.47, significantly exceeding Wall Street’s projection of $2.13. The $1.34 per share outperformance represents the kind of substantial beat that captures investor attention.
Revenue for the fourth quarter totaled $262.1 million, marking a 12.7% increase from the $232.5 million recorded in the comparable period last year. While the figure came in beneath the anticipated $271 million, market participants evidently prioritized the company’s profitability metrics.
$AGX | Q4 2026 Earnings
EPS: $3.47
Revenue: $262.1M
Net Income: $49.2MARGAN INC
— Earnings Alert (@EarningAlerts) March 26, 2026
Gross profit margin improved to 25% during the quarter, advancing from 20.5% in the year-ago period. Net income totaled $49.2 million, a substantial increase from $31.4 million reported in the prior year’s fourth quarter.
Chief Executive Officer David Watson characterized the results as a “record fourth quarter” that concluded what he termed a year marked by robust execution. The complete fiscal year figures supported this assessment.
For the full fiscal 2026, Argan posted revenue of $944.6 million, reflecting 8.1% year-over-year growth. Annual EPS registered at $9.74, up sharply from $6.15 in FY25. EBITDA climbed to $162.8 million from the previous year’s $113.5 million.
The most remarkable figure may be the project backlog. It surged to approximately $2.9 billion as of January 31, 2026, up from $1.4 billion one year prior. This expansion followed the addition of $2.5 billion in new contract value throughout FY26.
Watson attributed the contract wins to robust demand stemming from AI data center construction, electrification initiatives, and the replacement needs of outdated power infrastructure.
Financial Position and Shareholder Returns
Argan concluded the fiscal year with a robust cash position. The company maintained $895 million in cash, cash equivalents, and investments, up considerably from $525.1 million twelve months earlier. Net liquidity reached $421 million.
The balance sheet carries zero debt.
The company also increased its quarterly dividend to $0.50 per share during FY26, marking the third straight year of dividend growth.
One significant factor contributing to Q4 profitability was reaching substantial completion ahead of schedule at the Trumbull Energy Center — a development that provided a boost to gross margins during the quarter.
Forward Guidance for FY27
For the coming fiscal year, Argan provided revenue guidance ranging from $415 million to $440 million. This projection exceeds the analyst consensus estimate of $385.68 million.
Adjusted EBITDA for FY27 is projected to fall between $0 and $10 million. CFO Baugher indicated that it remains premature to provide detailed insight on FY27 gross margin expectations.
Management anticipates securing additional projects throughout the next 12 to 20 months.
AGX traded around $450 during premarket hours on March 27, representing an approximate 10% gain for the session. The shares had already demonstrated positive momentum, advancing roughly 12.6% during the preceding month and approximately 3.15% over the past week.
