Argan Q4 Results Highlight Backlog and Cash
Argan Q4 results on March 26 showed stronger margins, a $2.9 billion backlog and a higher dividend, supporting balance sheet strength and trader interest.
KEY TAKEAWAYS
- Q4 revenue $262 million; gross margin 25.0% and adjusted EBITDA 21.4% of sales.
- AGX backlog grew to $2.9 billion after $2.5 billion of new contract awards, increasing revenue visibility.
- Cash equivalents and investments totaled $895 million with no debt and net liquidity $421 million.
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Argan Q4 results on March 26, 2026, showed record quarterly profit and an expanded project backlog, leaving the company with a sizable cash position and no debt. Management raised the quarterly dividend, citing margin improvement across its businesses.
Quarter and Full-Year Results
For the quarter ended Jan. 31, 2026, Argan, Inc. (NYSE: AGX) reported revenue of $262 million, up 12.7% year over year, with a gross margin of 25.0%, a 4.5 percentage-point increase. Net income reached $49 million, or $3.47 per diluted share, while adjusted EBITDA totaled $56 million, about 21.4% of sales. Selling, general, and administrative expenses were $18 million, or 6.8% of revenue.
For fiscal 2026, the company posted revenue of $945 million, up 8.1% from the prior year. Full-year gross profit was $194 million, with a 20.5% margin, up 4.4 percentage points. Net income totaled $138 million, or $9.74 per diluted share, and EBITDA was $163 million, roughly 17.2% of revenue.
Backlog, Balance Sheet, and Dividend
Argan’s consolidated project backlog reached $2.9 billion as of Jan. 31, 2026, after adding $2.5 billion in new contract value during the fiscal year. Secondary reports indicate about 93% of the backlog relates to the utility sector. The company held $895 million in cash, cash equivalents, and investments, with net liquidity of $421 million and no debt.
The board raised the quarterly dividend to $0.50 per share, bringing total dividends for fiscal 2026 to $1.75 per share.
Operations and Management Commentary
The company announced the results in a press release, filed an 8-K, and held an investor call on March 26. Management attributed margin gains to execution in the power segment and progress on electrification projects, including the substantial completion of the Trumbull Energy Center. David Watson, president and chief executive officer, said, "Demand for our services remains exceptionally strong." The company did not provide quantitative guidance.
