Argan Posts Record Q1 Revenue, Expands Buyback to $200M

Benzinga reported Thursday that power and energy construction firm Argan Inc recorded its highest-ever quarterly revenue during the first three months of fiscal 2027. The result signals accelerating demand for large-scale energy infrastructure across the United States.

Record Quarter Driven by Power Segment

Argan record revenue reached $291 million for the quarter ending April 30. That figure represents a 50% increase against the same period a year earlier. The power construction segment was the primary engine behind the gain, as several recently awarded projects moved into active construction phases.

Net income for the quarter climbed to $46 million. Earnings per diluted share came in at $3.24. Adjusted EBITDA reached $56.4 million, and gross margins improved to 21%.

CEO David Watson told analysts the results reflected strong execution across all three operating segments. He noted that every division posted meaningful revenue growth during the period.

Projects Completed Ahead of Schedule

Two significant milestones were reached before the quarter closed. Argan achieved substantial completion on the third and final phase of its Midwest Solar and Battery initiative earlier than originally planned. The company also reached full completion on the 950-megawatt Trumbull Energy Center in Ohio.

Those deliveries demonstrate the firm’s ability to manage complex, multi-hundred-megawatt projects within tight timelines. Analyst coverage of the broader energy infrastructure buildout has highlighted surging demand from data centers and electrification as key tailwinds for builders in this space.

Strong Balance Sheet and Expanded Capital Return

Argan ended the quarter with $974 million in cash and carried zero debt. Management extended its share repurchase authorization to $200 million and pushed the program’s expiry to January 2030. A quarterly cash dividend of $0.50 per share remains in place.

CFO Josh Bakker reviewed the financials alongside Watson on the call. Management signaled a disciplined approach to project selection would continue guiding deployment of the firm’s substantial liquidity.

Background: A Focused Energy Constructor

Argan has built its reputation concentrating on gas-fired power plants and adjacent clean energy projects. The company’s strategy centers on bidding selectively and managing construction risk carefully. That approach has helped it accumulate a project backlog now standing at $2.8 billion. Gas-fired capacity additions have accelerated across the U.S. as grid operators scramble to meet rising electricity demand. Argan’s pipeline positioning suggests the firm is well placed to capture additional awards in that environment.

Management expressed confidence that its balance sheet and execution track record would support continued growth through fiscal 2027 and beyond.