| Metric | Value ($ M) | Q1 FY26 |
|---|---|---|
| Revenue | 290.95 | 50.2% |
| Total Income | 290.95 | 50.2% |
| Expenditure | 245.56 | 45.0% |
| PBT | 53.77 | 80.5% |
| Net Profit | 46.06 | 104.3% |
| OPM | 15.60% | 3.03pp |
| NPM | 15.83% | 4.19pp |
| EPS | 3.30 | 100.0% |
Argan Reports Record Q1 FY27 Revenue of $291.0 Million and Backlog of $2.8 Billion
05 Jun 2026 · 5 Jun, 1:43 am
Summary
Argan, Inc. achieved a strong start to fiscal year 2027, reporting record first-quarter revenue of $291.0 million, a 50.2% increase year-over-year. The company saw significant improvements in profitability, with gross margin rising to 21.0% and net income reaching $46.1 million ($3.24 per diluted share). Adjusted EBITDA also saw substantial growth, increasing to $56.4 million with a margin of 19.4%. Management highlighted robust demand for energy infrastructure, driven by electrification and data center growth, and noted the strategic expansion with a new fabrication facility to capitalize on these trends.
Key Highlights
- 1
Argan, Inc. reported record revenue of $291.0 million for the first quarter of fiscal year 2027, an increase of 50.2% compared to the prior-year quarter.
- 2
Gross profit for the quarter was $61.1 million, with gross margin improving to 21.0% from 19.0% in the prior year.
- 3
Net income for the first quarter of fiscal 2027 was $46.1 million, or $3.24 per diluted share, a significant increase from $22.6 million, or $1.60 per diluted share, in the prior-year quarter.
- 4
Adjusted EBITDA increased to $56.4 million for the first quarter of fiscal 2027, up from $31.5 million in the comparable prior-year period, with Adjusted EBITDA margin improving to 19.4%.
- 5
The company's project backlog stood at approximately $2.8 billion as of April 30, 2026, a slight decrease from $2.9 billion at the end of the previous quarter.
- 6
Argan announced the commencement of construction on a new fabrication facility in North Carolina, expected to be completed in the third quarter of fiscal 2027, to support increased demand in its industrial segment.
Management Comments
David Watson
We delivered a strong start to fiscal 2027 with record revenue of $291 million, gross margin of 21%, diluted earnings per share of $3.24, and adjusted EBITDA of $56.4 million. Our first quarter results reflect exceptional execution across our business, with all three of our operating segments achieving significant revenue growth as compared to the first quarter of fiscal 2026. Our project pipeline remains robust, with heightened demand for our capabilities as the electrification of everything, the onshoring of domestic manufacturing, and the proliferation of data centers continue to create an urgent need for additional energy infrastructure. Gas-fired plants remain the ideal solution for delivering the reliable, uninterrupted power needed, and only a limited number of firms are able to successfully execute these complex projects. The robust demand environment, coupled with our proven track record, allows us a disciplined approach in choosing the right projects, in the right locations, with the right partners. Our industrial segment is also seeing increased demand, highlighted by a data center contract we were awarded in November 2025 for the fabrication of pressure vessels. In support of this project and to better position us to address new opportunities, we have begun construction on a new fabrication facility in North Carolina, which we expect to complete during the third quarter of fiscal 2027. Argan remains very well positioned with the skill set, financial flexibility, industry relationships and longstanding customer base to capitalize on the current demand environment as we strengthen our leadership role as a partner of choice for the buildout of energy and industrial infrastructure.
Informational and educational content only. Not investment advice.