Power plant construction leader Argan, Inc. (NYSE: AGX) delivered a standout earnings beat after the close on Thursday, sending shares surging more than 9% in after-hours trading.
Q4 FY2026 Highlights
For the fourth quarter ended January 31, 2026, Argan reported diluted EPS of $3.47 — a massive beat versus the consensus estimate of $1.99 and up 56% from $2.22 in the year-ago quarter. Revenue came in at $262.1 million, up 12.7% year-over-year, with gross margins expanding sharply to 25.0% from 20.5%.
| Metric | Q4 FY2026 | Q4 FY2025 | Change |
|---|---|---|---|
| Revenue | $262.1M | $232.5M | +12.7% |
| Gross Margin | 25.0% | 20.5% | +450 bps |
| Net Income | $49.2M | $31.4M | +56.9% |
| Diluted EPS | $3.47 | $2.22 | +56.3% |
| EBITDA | $56.0M | $39.3M | +42.6% |
Record Full-Year FY2026 Results
The quarter capped a record fiscal year. For the full year ended January 31, 2026, Argan posted revenue of $944.6 million (+8.1%) and net income of $137.8 million, translating to $9.74 in diluted EPS — up 58% from $6.15 in FY2025. EBITDA rose to $162.8 million from $113.5 million. The company ended the year with $895 million in cash and investments and zero debt.
$2.9 Billion Backlog — Nearly Double Year-Over-Year
Perhaps the most striking headline: Argan’s consolidated project backlog surged to $2.929 billion at year-end, up from $1.361 billion a year ago — an increase of $1.568 billion, or 115%. During the fiscal year, the company added $2.5 billion in new contract value, signaling an explosive demand environment for new power generation infrastructure.
The AI and Data Center Tailwind
CEO David Watson pointed directly to secular demand drivers: “The rapid growth of AI and data centers, the electrification of everything, the replacement of aging power facilities, and a prolonged period of underinvestment in power infrastructure are placing increasing pressure on our power grids. We are seeing a robust pipeline of opportunities to build new gas-fired power plants capable of delivering reliable, high-quality power on a 24/7 basis.”
Argan specializes in engineering, procurement, and construction (EPC) of large, complex gas-fired and renewable power plants — a niche where years of execution track record matter. With data center buildouts accelerating across the US, developers need reliable baseload power fast, and Argan’s proven execution capability gives it a strong competitive moat.
Dividend Raised
Argan also raised its quarterly cash dividend to $0.50 per share, up from $0.375 in the year-ago quarter — a 33% increase, reflecting management’s confidence in the cash flow outlook.
Market Reaction
Shares traded around $449 in after-hours — up roughly 9% from the regular-session close of $410.85 — recouping intraday weakness ahead of the print. The stock has a 52-week range of $111.16 to $492.70. At after-hours levels, the company carries a market cap of approximately $6.3 billion.
Argan hosted an investor conference call today at 5:00 p.m. ET to discuss the results.
