Argan Inc. (NYSE: AGX) provides engineering, procurement, and construction services primarily to the power industry, focusing on the construction of natural gas-fired power plants and renewable energy facilities. The company reported a positive performance in its first quarter of fiscal 2026, reflecting significant growth and robustness in its financials.

For the quarter ended April 30, 2025, Argan’s consolidated revenues reached $193.7 million, a 23% increase compared to $157.7 million in the same quarter last year. Gross profit also increased to $36.9 million, resulting in a gross margin of 19%, up from 11.4% in the prior year’s quarter. Net income surged to $22.6 million, or $1.60 per diluted share, compared to $7.9 million, or $0.58 per diluted share, in the previous year.

EBITDA for the first quarter was reported at $30.3 million, marking a substantial increase from $11.9 million year-over-year, with EBITDA margins improving to 15.6%, up from 7.5% in the first quarter of fiscal 2025. Selling, general, and administrative expenses rose to $12.5 million, but as a percentage of revenues, these costs decreased from 7.2% to 6.5%.

Argan’s project backlog increased significantly to a record $1.9 billion as of April 30, 2025, rising from $1.4 billion at the end of the previous quarter, representing growth of 36%. The backlog included several new gas-fired power plant projects, specifically the Sandow Lakes project, which is a 1.2 GW ultra-efficient combined-cycle natural gas-fired plant in Texas.

The company also reported total cash, cash equivalents, and investments of $546.5 million at the end of the quarter, up from $525.1 million at the beginning of the year. Furthermore, net liquidity stood at $315.1 million and no debt reported, showcasing a strong balance sheet. Argan returned $18 million in capital to shareholders, including a quarterly dividend of $0.375 per share, an increase from $0.300 per share the previous year.

The gross margins for Argan’s segments were 20.6% for Power Industry Services, 10.8% for Industrial Construction Services, and 18% for Telecommunications Infrastructure Services, compared to 10.2%, 13.3%, and 22.9%, respectively, in the prior year’s first quarter.

The overall business environment appears favorable for Argan with an increased demand for energy resources, particularly as part of the transition away from aging infrastructure. Argan’s strategic positioning and financial robustness appear to be well-suited to take advantage of the substantial project opportunities that are expected to arise in the coming years.