Argan, Inc.

First-quarter fiscal 2027 revenue was a record $291 million, up 50% from $194 million in the prior-year quarter. Consolidated gross profit was approximately $61.1 million, with gross margin of 21% versus 19% last year. Net income was $46.1 million, or $3.24 per diluted share, compared with $22.6 million, or $1.60 per diluted share, and adjusted EBITDA was $56.4 million versus $31.5 million a year ago. For segment detail, Power revenue was $227 million with pretax book income of $52 million; Industrial revenue was $58 million with pretax book income of approximately $5 million; Teledata revenue was $6 million. Backlog ended at $2.8 billion, with the company expecting to add a handful of new projects over the next 10 to 18 months.

CEO David Watson framed the quarter as evidence of “exceptional execution” across all three segments, emphasizing that demand is being driven by power infrastructure needs, data centers, and onshoring. He repeatedly stressed that Argan is disciplined in choosing projects and that the company is well positioned to execute on 10 to 12 jobs simultaneously, while also noting that capacity can expand over time as teams are trained. His tone was confident and constructive, but he was careful not to overpromise on timing or backlog growth.

CFO Josh Baugher highlighted the hard numbers behind the quarter: revenue of $291 million, gross profit of about $61.1 million, gross margin of 21%, SG&A of $15.7 million, net income of $46.1 million, and adjusted EBITDA of $56.4 million. He noted that SG&A as a percentage of revenue fell to 5.4% from 6.5% a year ago, and that other income net was $8.4 million, mainly from investment income. The balance sheet remained very strong with $974 million in cash, cash equivalents and investments, $421 million of net liquidity, and no debt, supporting dividends, buybacks, and a relatively light-capex model.

Analysts focused on whether Argan’s growth is constrained more by capacity than by demand, and management said current capacity is still 10 to 12 jobs, with revenue per project rising as jobs get larger and more expensive. On the power pipeline, management said there have been no real changes in customer behavior or timelines; projects still depend on milestones like permits, gas access, turbines, and financing, and the company expects a handful of new awards over 10 to 18 months. Questions also probed margins and the new North Carolina fabrication facility, and management said the facility should support data center-related demand, costs are estimated at $10 million to $13 million, and overall margins have benefited from early completions and strong execution, though future margins will still vary by project mix and risk.