Argan Inc. reported fourth‑quarter and full‑year 2026 results with revenue of $262.05 million, a 12.7% year‑over‑year increase from $232.47 million. The growth was driven by robust demand in the company’s Power and Industrial Construction segments, while the Teledata segment saw modest decline, balancing the overall revenue mix.
Earnings per share rose to $3.47, beating consensus estimates of $1.99 to $2.13 by $1.48 to $1.57, a 74% surprise. The strong beat was largely attributable to disciplined cost management, a higher mix of high‑margin projects, and the early completion of the Trumbull Energy Center, which accelerated cash flow and reduced project‑level costs.
Gross profit for the quarter reached $65.6 million, giving the company a 25.0% gross margin, up from 20.5% a year earlier. The Power segment’s margin expanded to 29%, reflecting the company’s focus on high‑margin natural‑gas and renewable projects and the operational leverage gained from fixed‑price contracts.
The company’s backlog climbed to $2.9 billion, up from $2.5 billion at the end of 2025, providing multi‑year revenue visibility. "Our record fourth quarter performance capped a year of strong execution throughout fiscal 2026, driving record top and bottom‑line performance for the full year," said President and CEO David Watson.
Management maintained full‑year revenue guidance of $944.6 million, an 8.1% year‑over‑year increase, and EPS guidance of $3.47. Investors welcomed the margin expansion and EPS beat, though the revenue miss against some analysts tempered enthusiasm.
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