Argan reported record second quarter fiscal 2027 results, with revenue surging 61.5% year-over-year to $384.0 million, significantly exceeding analyst expectations. Net income reached a record $53.3 million, or $3.76 per diluted share, driven by accelerated construction activities in the Power segment and a record adjusted EBITDA of $70.0 million.
Key Highlights
- Power segment revenue grew 53% year-over-year to $301 million at a 22% gross margin, fueled by the ramp-up of several large-scale contracts.
- Total project backlog stood at $2.52 billion as of July 31, 2026, substantially outperforming the previewed analyst expectation of $1.1 billion.
- The company maintained a debt-free balance sheet with $1.03 billion in cash and investments, supporting a 33% increase in the quarterly dividend to $0.50 per share.
- Consolidated gross margin expanded by 70 basis points to 19.3%, primarily due to favorable project mix and strong execution within the Power division.