(NYSE: AGX) (“Argan” or the “Company”) today announces financial results for its third quarter of fiscal year 2026 ended October 31, 2025. The Company will host an investor conference call today, December 4, 2025, at 5:00 p.m. ET.Argan, Inc.

David Watson, President and Chief Executive Officer of Argan, commented, “We delivered solid third quarter results highlighted by our record backlog of $3.0 billion, which as expected, reflects the addition of two new gas-fired projects in the quarter – the 1.4 GW CPV Basin Ranch Energy Center in Ward County, Texas, and a 860 MW facility, also located in Texas. With these new projects added, we are currently under contract for the construction of approximately 6 GW of power generating assets.

“There is significant urgency around the construction of new, combined-cycle natural gas projects as older facilities reach the end of their useful life and new resources are needed to meet the growing demand for reliable energy to power the ‘electrification of everything’. Moving forward, we expect to periodically add projects to our backlog as power plant construction projects underway make progress and are completed. With our visibility today, we are optimistic about our ability to drive revenue growth and enhanced profitability for many years to come. As we move through the close of fiscal 2026, we remain committed to our disciplined approach to capitalizing on the strong demand we are seeing for our services, with a focus on pursuing the right projects with the right partners in the right geographies.”

Third Quarter Results

Consolidated revenues for the quarter ended October 31, 2025, were $251.2 million, a decrease of $5.9 million, or 2.3%, from consolidated revenues of $257.0 million reported for the comparable prior-year quarter. The decrease in revenues relative to the prior-year quarter reflects the timing of work performed and project mix, as recently awarded contracts are progressing through early construction stages, while the prior-year period included peak execution activity on several large projects.

For the quarter ended October 31, 2025, Argan’s consolidated gross profit was $46.9 million, or 18.7% of consolidated revenues. Consolidated gross profit for the quarter ended October 31, 2024 was $44.3 million, or 17.2% of consolidated revenues. The increase from the comparable prior-year quarter is primarily due to improved gross profit margins for the Power Industry Services and Industrial Construction Services segments.

Selling, general and administrative expenses were $14.3 million and $14.0 million for the three months ended October 31, 2025 and 2024, respectively, and represented 5.7% and 5.4% of corresponding consolidated revenues, respectively.

Other income, net, for the three months ended October 31, 2025 was $7.1 million, which primarily reflected investment income earned during the period.

For the quarter ended October 31, 2025, Argan achieved net income of $30.7 million, or $2.17 per diluted share, compared to $28.0 million, or $2.00 per diluted share, for last year’s third quarter. EBITDA for the quarter ended October 31, 2025 increased to $40.3 million compared to $37.5 million for the same quarter of last year.

Argan continues to generate significant cash flow and increased its total balance of cash, cash equivalents and investments during the quarter. The total balances were $726.8 million and $525.1 million as of October 31, 2025 and January 31, 2025, respectively. Balance sheet net liquidity was $377.3 million at October 31, 2025 and $301.4 million at January 31, 2025; furthermore, the Company had no debt.

First Nine Months Results

Consolidated revenues for the nine months ended October 31, 2025 were $682.6 million, an increase of $40.9 million, or 6.4%, from consolidated revenues of $641.7 million reported for the comparable prior year period. For the nine months ended October 31, 2025, consolidated gross profit increased to approximately $128.1 million, or 18.8% of consolidated revenues, compared to consolidated gross profit of $93.4 million, or 14.6% of consolidated revenues, reported for the nine months ended October 31, 2024.

For the nine months ended October 31, 2025, Argan achieved net income of $88.6 million, or $6.27 per diluted share, versus net income of $54.1 million, or $3.91 per diluted share, for last year’s comparable period. EBITDA for the nine months ended October 31, 2025 increased to $106.8 million compared to $74.2 million in the same period of last year.

As of October 31, 2025, consolidated project backlog was approximately $3.0 billion, as compared to approximately $1.4 billion at January 31, 2025.

Conference Call and Webcast

Argan will host a conference call and webcast for investors today, December 4, 2025, at 5:00 p.m. ET.

Domestic stockholders and interested parties may participate in the conference call by dialing (888) 506-0062 and international participants should dial (973) 528-0011; all callers shall use access code: 510701.

The call and the accompanying slide deck will also be webcast at:https://www.webcaster5.com/Webcast/Page/2961/53159

The conference call and slide deck may also be accessed via the Investor Center section of the Company’swebsite https://arganinc.com/investor-center

A replay of the teleconference will be available until December 18, 2025, and can be accessed by dialing 877-481-4010 (domestic) or 919-882-2331 (international). The replay access code is 53159. A replay of the webcast can be accessed until December 4, 2026.

About Argan

Argan’s primary business is providing a full range of construction and related services to the power industry. Argan’s service offerings focus on the engineering, procurement and construction of natural gas-fired power plants and renewable energy facilities, along with related commissioning, maintenance, project development and technical consulting services, through its Gemma Power Systems and Atlantic Projects Company operations. Argan also owns The Roberts Company, which is a fully integrated industrial construction, fabrication and plant services company, and SMC Infrastructure Solutions, which provides telecommunications infrastructure services.

Non-GAAP Financial Measures

The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”). Within this press release, the Company makes reference to earnings before interest, taxes, depreciation and amortization (“EBITDA”), a non-GAAP financial measure. The Company believes that the non-GAAP financial measure described in this press release is important to management and investors because the measure supplements the understanding of Argan’s ongoing operating results, excluding the effects of capital structure, depreciation, amortization, and income tax rates. The non-GAAP financial measure referred to above should be considered in conjunction with, and not as a substitute for, the GAAP financial information presented in this press release. Financial tables at the end of this press release provide a reconciliation of the non-GAAP financial measures to the comparable GAAP measures.

Safe Harbor Statement

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Reference is hereby made to the cautionary statements made by the Company with respect to risk factors set forth in its most recent reports on Form 10-K, Forms 10-Q and other SEC filings. The Company’s future financial performance is subject to risks and uncertainties including, but not limited to, the successful addition of new contracts to project backlog, the receipt of corresponding notices to proceed with contract activities, and the Company’s ability to successfully complete the projects that it obtains. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to the risk factors highlighted above and described regularly in the Company’s SEC filings.

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Consolidated Financial Highlights
($ in thousands, except per share data)

	October 31,
For the Quarter Ended:	2025			2024			Change
Revenues	$	251,153		$	257,008		$	(5,855)
Gross profit		46,949			44,327			2,622
Gross margin %		18.7	%		17.2	%		1.5	%
Net income	$	30,737		$	28,010		$	2,727
Diluted earnings per share		2.17			2.00			0.17
EBITDA		40,297			37,509			2,788
EBITDA as a % of revenues		16.0	%		14.6	%		1.4	%
Cash dividends per share		0.500			0.375			0.125


	October 31,
For the Nine Months Ended:	2025			2024			Change
Revenues	$	682,556		$	641,705		$	40,851
Gross profit		128,079			93,376			34,703
Gross margin %		18.8	%		14.6	%		4.2	%
Net income	$	88,562		$	54,090		$	34,472
Diluted earnings per share		6.27			3.91			2.36
EBITDA		106,821			74,241			32,580
EBITDA as a % of revenues		15.7	%		11.6	%		4.1	%
Cash dividends per share		1.250			0.975			0.275


	October 31,		January 31,
As of:	2025		2025		Change
Cash, cash equivalents and investments	$	726,821	$	525,137	$	201,684
Net liquidity⁽¹⁾		377,311		301,443		75,868
Share repurchase treasury stock, at cost		113,590		105,643		7,947
Project backlog		2,973,000		1,361,000		1,612,000


⁽¹⁾		Net liquidity, or working capital, is defined as total current assets less total current liabilities.


ARGAN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
(Unaudited)

	Three Months Ended					Nine Months Ended
	October 31,					October 31,
	2025		2024			2025		2024

REVENUES	$	251,153	$	257,008		$	682,556	$	641,705
Cost of revenues		204,204		212,681			554,477		548,329
GROSS PROFIT		46,949		44,327			128,079		93,376
Selling, general and administrative expenses		14,316		13,995			41,049		37,848
INCOME FROM OPERATIONS		32,633		30,332			87,030		55,528
Other income, net		7,061		6,646			18,086		17,044
INCOME BEFORE INCOME TAXES		39,694		36,978			105,116		72,572
Provision for income taxes		8,957		8,968			16,554		18,482
NET INCOME		30,737		28,010			88,562		54,090

OTHER COMPREHENSIVE INCOME, NET OF TAXES
Foreign currency translation adjustments		165		(957	)		3,535		(1,933	)
Net unrealized gains (losses) on available-for-sale securities		1,296		(659	)		2,894		(169	)
COMPREHENSIVE INCOME	$	32,198	$	26,394		$	94,991	$	51,988

EARNINGS PER SHARE
Basic	$	2.22	$	2.07		$	6.45	$	4.04
Diluted	$	2.17	$	2.00		$	6.27	$	3.91

WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		13,830		13,530			13,731		13,398
Diluted		14,157		14,034			14,134		13,830

CASH DIVIDENDS PER SHARE	$	0.500	$	0.375		$	1.250	$	0.975


ARGAN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
(Unaudited)

	October 31,		January 31,
	2025		2025
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	306,294	$	145,263
Investments		420,527		379,874
Accounts receivable, net		170,381		175,808
Contract assets		38,402		28,430
Other current assets		61,567		51,925
TOTAL CURRENT ASSETS		997,171		781,300
Property, plant and equipment, net		15,777		14,463
Goodwill		28,033		28,033
Intangible assets, net		1,532		1,826
Deferred taxes, net		—		552
Right-of-use and other assets		8,356		10,053
TOTAL ASSETS	$	1,050,869	$	836,227

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	100,798	$	97,297
Accrued expenses		67,144		83,319
Contract liabilities		451,918		299,241
TOTAL CURRENT LIABILITIES		619,860		479,857
Deferred taxes, net		6,116		—
Noncurrent liabilities		5,183		4,513
TOTAL LIABILITIES		631,159		484,370

STOCKHOLDERS’ EQUITY
Preferred stock, par value $0.10 per share – 500,000 shares authorized; no shares issued and outstanding		—		—
Common stock, par value $0.15 per share – 30,000,000 shares authorized; 15,828,289 shares issued; 13,873,410 and 13,634,214 shares outstanding at October 31, 2025 and January 31, 2025, respectively		2,374		2,374
Additional paid-in capital		167,075		168,966
Retained earnings		363,960		292,698
Treasury stock, at cost – 1,954,879 and 2,194,075 shares at October 31, 2025 and January 31, 2025, respectively		(113,590)		(105,643)
Accumulated other comprehensive loss		(109)		(6,538)
TOTAL STOCKHOLDERS’ EQUITY		419,710		351,857
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,050,869	$	836,227


ARGAN, INC. AND SUBSIDIARIES
RECONCILIATION TO EBITDA
(In thousands)
(Unaudited)

	Three Months Ended
	October 31,
	2025		2024
Net income, as reported	$	30,737	$	28,010
Provision for income taxes		8,957		8,968
Depreciation		505		433
Amortization of intangible assets		98		98
EBITDA	$	40,297	$	37,509


	Nine Months Ended
	October 31,
	2025		2024
Net income, as reported	$	88,562	$	54,090
Provision for income taxes		16,554		18,482
Depreciation		1,411		1,376
Amortization of intangible assets		294		293
EBITDA	$	106,821	$	74,241