Argan Inc. Reports Strong Q1 Fiscal 2026 Results
Argan Inc. (NYSE: AGX), a prominent player in the construction and engineering sector, has announced its financial results for the first quarter of fiscal year 2026, ending April 30, 2025. The company, known for designing and constructing energy plants, including traditional gas and alternative energy sources like biodiesel, ethanol, wind power, and solar, has reported a robust start to the fiscal year.
In a press release dated June 4, 2025, Argan Inc. revealed a significant increase in consolidated revenue, which grew by 23% to $193.7 million. This growth is accompanied by a gross margin of 19.0%, a substantial improvement from the previous year’s 11.4%. The company’s net income for the quarter was $22.5 million, up from $7.9 million in the same period last year, marking a 14.7% increase. Diluted earnings per share also saw a significant rise, reaching $1.60 compared to $0.58 in the previous year.
David Watson, President and Chief Executive Officer of Argan, expressed optimism about the company’s performance, stating, “Our first quarter results reflect a strong start to fiscal 2026, with consolidated revenue growth of 23% to $193.7 million, gross margin of 19.0%, significantly enhanced diluted earnings per share of $1.60, and EBITDA as a percentage of revenues at 15.6%.”
One of the standout achievements for Argan Inc. this quarter is the record backlog of $1.9 billion, up from $1.36 billion in the previous year. This increase in backlog underscores the company’s strong market position and future growth potential.
In addition to financial highlights, Argan Inc. reported improvements in its cash position. Cash, cash equivalents, and investments increased to $546.5 million from $525.1 million, while net liquidity rose to $315.1 million from $301.4 million. The company also repurchased treasury stock, bringing the total to $114.0 million at cost.
Argan Inc. will host an investor conference call on June 4, 2025, at 5:00 p.m. ET to discuss these results in more detail and provide further insights into the company’s strategic direction.
Operations Improving at Silver Project in Peru
In related news, Silver X Mining Corp., a company associated with Argan Inc., has reported positive developments at its Nueva Recuperada mine in Peru. According to a Red Cloud Securities report, Silver X Mining Corp. achieved its highest EBITDA and operating income in over two years during Q1/25. This improvement was driven by a 38% reduction in operating costs compared to Q4/24, despite lower-than-expected production.
Red Cloud Securities Mining Analyst Alina Islam highlighted the turnaround in operations, noting that the company removed discretionary business development, investor relations, and share-based compensation costs from general and administrative expenses. This strategic move contributed to a significant reduction in costs, bringing them down to $434,000 from a higher figure in the previous quarter.
Islam reiterated her Buy rating on Silver X Mining Corp., with a target price of CA$0.75 per share, implying a potential return of 369%. The analyst’s report underscores the positive momentum at the Nueva Recuperada mine and the potential for continued operational improvements.
As Argan Inc. and its associated entities continue to demonstrate strong financial performance and operational efficiency, investors and stakeholders can look forward to a promising future for the company in the construction and engineering sector.