Argan exhibits superior profitability compared to EPC peers, evidenced by a peak gross margin of 25.0% in 2026Q4 and a 15.8% net margin in 2027Q1.
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 | Jan'15 | Jan'14 | Jan'13 | Jan'12 | Jan'11 | Jan'10 | Jan'09 | Jan'08 | Jan'07 | Jan'06 | Jan'05 | Jan'04 | Jan'03 | Jan'02 | Jan'01 | Jan'00 | Jan'99 | Jan'98 | Jan'97 |
|---|
| Sales/Revenue | 1.04B | 944.61M | 874.18M | 573.33M | 455.04M | 509.37M | 392.21M | 239M | 482.15M | 892.82M | 675.05M | 413.27M | 383.11M | 227.46M | 278.63M | 141.85M | 182.59M | 232.33M | 220.93M | 206.78M | 68.87M | 28.45M | 14.52M | 6.78M | 6.83M | 7.24M | 7.61M | 7.44M | 8.02M | 8.6M | 8.46M |
| Revenue Growth % | 14.47% | 8.06% | 52.47% | 26% | -10.67% | 29.87% | 64.11% | -50.43% | -46% | 32.26% | 63.34% | 7.87% | 68.43% | -18.37% | 96.43% | -22.31% | -21.41% | 5.16% | 6.84% | 200.25% | 142.05% | 95.98% | 114.13% | -0.79% | -5.56% | -4.92% | 2.33% | -7.25% | -6.73% | 1.64% | -4.05% |
| Cost of Goods Sold | 823.97M | 750.93M | 733.19M | 492.5M | 368.68M | 409.64M | 330.14M | 245.82M | 399.71M | 743.49M | 528.34M | 313.81M | 299.51M | 148.61M | 228.5M | 118.75M | 153.47M | 208.85M | 188.04M | 185.19M | 58.62M | 22.39M | 11.33M | 5.18M | 4.5M | 5.14M | 5.06M | 5.2M | 5.83M | 6.16M | 5.89M |
| COGS % of Revenue | - | 79.5% | 83.87% | 85.9% | 81.02% | 80.42% | 84.17% | 102.85% | 82.9% | 83.27% | 78.27% | 75.93% | 78.18% | 65.33% | 82.01% | 83.71% | 84.05% | 89.89% | 85.11% | 89.56% | 85.12% | 78.68% | 78.06% | 76.46% | 65.84% | 70.99% | 66.5% | 69.98% | 72.77% | 71.66% | 69.62% |
| Gross Profit | 217.93M | 193.68M | 140.99M | 80.83M | 86.36M | 99.73M | 62.07M | -6.82M | 82.44M | 149.32M | 146.71M | 99.47M | 83.6M | 78.85M | 50.13M | 23.1M | 29.12M | 23.48M | 32.88M | 21.59M | 10.25M | 6.07M | 3.19M | 1.6M | 2.33M | 2.1M | 2.55M | 2.23M | 2.18M | 2.44M | 2.57M |
| Gross Margin % | 20.92% | 20.5% | 16.13% | 14.1% | 18.98% | 19.58% | 15.83% | -2.85% | 17.1% | 16.73% | 21.73% | 24.07% | 21.82% | 34.67% | 17.99% | 16.29% | 15.95% | 10.11% | 14.89% | 10.44% | 14.88% | 21.32% | 21.94% | 23.54% | 34.16% | 29.01% | 33.5% | 30.02% | 27.23% | 28.34% | 30.38% |
| Gross Profit Growth % | - | 37.37% | 74.42% | -6.4% | -13.41% | 60.68% | 1010.07% | -108.27% | -44.79% | 1.78% | 47.5% | 18.97% | 6.03% | 57.27% | 117.02% | -20.67% | 24.03% | -28.6% | 52.35% | 110.59% | 68.95% | 90.49% | 99.56% | -31.63% | 11.21% | -17.68% | 14.2% | 2.25% | -10.37% | -5.19% | -10.12% |
| Operating Expenses | 62.17M | 58.98M | 52.79M | 44.38M | 44.69M | 55.22M | 39.04M | 49.02M | 40.71M | 41.76M | 32.48M | 25.06M | 19.47M | 12.92M | 14.35M | 11.19M | 12.13M | 14.87M | 17.99M | 25.81M | 9.86M | 13.97M | 6.75M | 1.91M | 1.94M | 1.73M | 1.76M | 2.55M | 1.83M | 1.6M | 1.45M |
| OpEx % of Revenue | - | 6.24% | 6.04% | 7.74% | 9.82% | 10.84% | 9.95% | 20.51% | 8.44% | 4.68% | 4.81% | 6.06% | 5.08% | 5.68% | 5.15% | 7.89% | 6.64% | 6.4% | 8.14% | 12.48% | 14.32% | 49.09% | 46.51% | 28.2% | 28.38% | 23.88% | 23.16% | 34.32% | 22.86% | 18.6% | 17.09% |
| Selling, General & Admin | 62.17M | 58.98M | 52.79M | 44.38M | 44.69M | 47.32M | 39.04M | 44.13M | 40.71M | 41.76M | 32.48M | 25.06M | 19.47M | 12.92M | 14.35M | 11.19M | 12.13M | 14.87M | 14.86M | 18.98M | 9.86M | 7.47M | 6.75M | 1.91M | 1.94M | 1.73M | 1.76M | 2.21M | 1.83M | 1.6M | 1.45M |
| SG&A % of Revenue | - | 6.24% | 6.04% | 7.74% | 9.82% | 9.29% | 9.95% | 18.46% | 8.44% | 4.68% | 4.81% | 6.06% | 5.08% | 5.68% | 5.15% | 7.89% | 6.64% | 6.4% | 6.73% | 9.18% | 14.32% | 26.25% | 46.51% | 28.2% | 28.38% | 23.88% | 23.16% | 29.73% | 22.86% | 18.6% | 17.09% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 7.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -43K | 0 | 0 | 0 | 3.13M | 6.83M | 0 | 6.5M | 0 | 0 | 0 | 0 | 0 | 341.17K | 0 | 0 | 0 |
| Operating Income | 155.75M | 134.7M | 88.19M | 36.46M | 41.67M | 44.51M | 23.03M | -55.84M | 40.24M | 106.98M | 112.25M | 74.41M | 64.13M | 65.93M | 35.78M | 11.92M | 16.99M | 8.57M | 14.89M | -4.22M | 387K | -7.9M | -3.57M | -316K | 394.74K | 370.69K | 513.11K | -319.85K | 350.8K | 837.15K | 1.12M |
| Operating Margin % | 14.95% | 14.26% | 10.09% | 6.36% | 9.16% | 8.74% | 5.87% | -23.36% | 8.35% | 11.98% | 16.63% | 18% | 16.74% | 28.99% | 12.84% | 8.4% | 9.31% | 3.69% | 6.74% | -2.04% | 0.56% | -27.76% | -24.57% | -4.66% | 5.78% | 5.12% | 6.74% | -4.3% | 4.38% | 9.74% | 13.29% |
| Operating Income Growth % | - | 52.73% | 141.91% | -12.51% | -6.38% | 93.3% | 141.24% | -238.78% | -62.39% | -4.7% | 50.87% | 16.02% | -2.73% | 84.24% | 200.31% | -29.88% | 98.27% | -42.45% | 452.58% | -1191.47% | 104.9% | -121.45% | -1028.8% | -180.05% | 6.49% | -27.76% | 260.42% | -191.18% | -58.1% | -25.52% | -2.87% |
| EBITDA | 166.78M | 136.99M | 93.86M | 38.86M | 45.38M | 48.75M | 27.64M | -51.19M | 44.67M | 110.79M | 115.46M | 75.72M | 64.93M | 66.72M | 36.55M | 12.71M | 17.99M | 9.54M | 17.29M | 3.24M | 4.08M | -5.22M | -2.19M | -7K | 577.68K | 861.08K | 786.76K | 21.33K | 683.1K | 1.13M | 1.44M |
| EBITDA Margin % | 16.01% | 14.5% | 10.74% | 6.78% | 9.97% | 9.57% | 7.05% | -21.42% | 9.26% | 12.41% | 17.1% | 18.32% | 16.95% | 29.33% | 13.12% | 8.96% | 9.85% | 4.11% | 7.83% | 1.57% | 5.92% | -18.35% | -15.08% | -0.1% | 8.45% | 11.9% | 10.34% | 0.29% | 8.52% | 13.19% | 17.05% |
| EBITDA Growth % | 38.09% | 45.96% | 141.5% | -14.37% | -6.9% | 76.33% | 154% | -214.6% | -59.68% | -4.05% | 52.49% | 16.62% | -2.69% | 82.55% | 187.68% | -29.36% | 88.49% | -44.81% | 434.11% | -20.66% | 178.16% | -138.36% | -31185.71% | -101.21% | -32.91% | 9.45% | 3589.21% | -96.88% | -39.78% | -21.34% | -3.69% |
| D&A (Non-Cash Add-back) | 2.65M | 2.29M | 5.66M | 2.4M | 3.71M | 4.24M | 4.62M | 4.65M | 4.43M | 3.81M | 3.21M | 1.31M | 794K | 792K | 765K | 789K | 992K | 971K | 2.4M | 7.46M | 3.69M | 2.68M | 1.38M | 309K | 182.94K | 490.39K | 273.65K | 341.17K | 332.29K | 297.2K | 318.05K |
| EBIT | 184.49M | 160.51M | 111.2M | 48.93M | 46M | 52.41M | 23.03M | -50.95M | 41.73M | 107.56M | 114.23M | 74.41M | 64.13M | 65.93M | 35.38M | 11.92M | 16.99M | 10.84M | 17.16M | -4.22M | 387K | -7.9M | -3.57M | -316K | -197K | 370.69K | 1.34M | 46.91K | 351K | 939.41K | 1.12M |
| Net Interest Income | 12.6M | 11M | 21.2M | 0 | 0 | -10.71M | 0 | 5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 50K | -76K | 1.34M | 0 | -760K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 12.6M | 11M | 21.2M | 0 | 0 | 0 | 0 | 5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 85K | 108K | 1.75M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 10.71M | 0 | 0 | 0 | 0 | 8.78M | 12.41M | 12.78M | 0 | 0 | 0 | 35K | 184K | 1.28M | 4.21M | 760K | 10.95M | 0 | 519K | 239.01K | 757.48K | 612.89K | 882.46K | 155.38K | 1.07M | 839.41K |
| Other Income/Expense | 28.74M | 25.81M | 23.01M | 12.47M | 4.33M | 2.55M | 1.86M | 8.07M | 6.98M | 5.65M | 2.28M | 1.1M | 234K | 3.4M | -43K | 48K | 50K | -60K | 1.85M | -4.21M | -411K | -2.53M | -671K | 4K | -591.74K | -44.89K | -50.94K | -452.83K | -86.56K | -638.88K | -455.42K |
| Pretax Income | 184.49M | 160.51M | 111.2M | 48.93M | 46M | 47.06M | 24.89M | -47.77M | 47.22M | 112.63M | 114.53M | 75.51M | 64.37M | 69.33M | 35.74M | 11.96M | 17.04M | 10.66M | 16.75M | -1.61M | -24K | -10.43M | -3.62M | -312K | 175.86K | 325.8K | 462.16K | -772.68K | 264.44K | 300.53K | 668.59K |
| Pretax Margin % | 17.71% | 16.99% | 12.72% | 8.53% | 10.11% | 9.24% | 6.34% | -19.99% | 9.79% | 12.61% | 16.97% | 18.27% | 16.8% | 30.48% | 12.83% | 8.43% | 9.33% | 4.59% | 7.58% | -0.78% | -0.03% | -36.66% | -24.96% | -4.6% | 2.57% | 4.5% | 6.07% | -10.39% | 3.3% | 3.5% | 7.9% |
| Income Tax | 23.2M | 22.73M | 25.75M | 16.57M | 11.3M | 11.36M | 1.07M | -4.83M | -4.65M | 40.28M | 37.11M | 25.3M | 20.91M | 25.99M | 13.64M | 4.56M | 7.04M | 3.62M | 6.73M | 1.59M | 89K | -922K | -1.04M | -289K | 30.7K | 130K | 185K | 75.7K | -464.81K | -191.43K | 5.6K |
| Effective Tax Rate % | 12.58% | 14.16% | 23.15% | 33.87% | 24.56% | 24.13% | 4.32% | 10.11% | -9.85% | 35.76% | 32.4% | 33.51% | 32.49% | 37.49% | 38.16% | 38.08% | 41.29% | 33.96% | 40.17% | -98.82% | -370.83% | 8.84% | 28.84% | 92.63% | 17.46% | 39.9% | 40.03% | -9.8% | -175.77% | -63.7% | 0.84% |
| Net Income | 161.29M | 137.77M | 85.46M | 32.36M | 33.1M | 38.24M | 23.85M | -42.94M | 52.04M | 72.01M | 70.33M | 36.34M | 30.45M | 40.13M | 23.27M | 9.27M | 7.77M | 7.04M | 10.02M | -3.21M | -113K | -9.51M | -2.58M | -597K | 317.62K | -518.89K | -22.13K | -848.38K | 729.25K | 491.96K | 662.99K |
| Net Margin % | 15.48% | 14.59% | 9.78% | 5.64% | 7.27% | 7.51% | 6.08% | -17.96% | 10.79% | 8.07% | 10.42% | 8.79% | 7.95% | 17.64% | 8.35% | 6.54% | 4.26% | 3.03% | 4.54% | -1.55% | -0.16% | -33.42% | -17.76% | -8.81% | 4.65% | -7.17% | -0.29% | -11.41% | 9.09% | 5.72% | 7.84% |
| Net Income Growth % | 61.08% | 61.22% | 164.1% | -2.24% | -13.46% | 60.35% | 155.55% | -182.51% | -27.74% | 2.39% | 93.5% | 19.38% | -24.12% | 72.47% | 150.92% | 19.27% | 10.43% | -29.73% | 412.61% | -2736.28% | 98.81% | -268.67% | -331.99% | -287.96% | 161.21% | -2245.15% | 97.39% | -216.34% | 48.23% | -25.8% | -26.18% |
| Net Income (Continuing) | 161.29M | 137.77M | 85.46M | 32.36M | 34.7M | 35.71M | 23.81M | -40.71M | 51.87M | 72.35M | 77.43M | 50.2M | 43.45M | 43.34M | 22.1M | 7.41M | 10.01M | 7.04M | 10.02M | -3.21M | -113K | -9.51M | -3.19M | -23K | -197K | 195.8K | 372K | -822.79K | 729K | 491.96K | 662.99K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.56M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | -797K | 1.74M | 1.78M | -196K | 43K | 937K | 3.34M | -10.52M | 1.47M | -1.75M | -301K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 11.36 | 9.73 | 6.15 | 2.39 | 2.33 | 2.40 | 1.51 | -2.75 | 3.32 | 4.56 | 4.50 | 2.42 | 2.05 | 2.78 | 1.65 | 0.67 | 0.57 | 0.51 | 0.78 | -0.29 | -0.02 | -2.76 | -1.20 | -0.40 | 0.64 | -1.05 | -0.04 | -1.57 | 1.50 | 1.05 | 1.65 |
| EPS Growth % | 59.61% | 58.21% | 157.32% | 2.58% | -2.92% | 58.94% | 154.91% | -182.83% | -27.19% | 1.33% | 85.95% | 18.05% | -26.26% | 68.48% | 146.27% | 17.54% | 11.76% | -34.62% | 368.97% | -1267.92% | 99.23% | -130% | -200% | -162.5% | 160.95% | -2286.36% | 97.2% | -204.67% | 42.86% | -36.36% | -42.11% |
| EPS (Basic) | - | 10.00 | 6.35 | 2.42 | 2.35 | 2.43 | 1.52 | -2.75 | 3.34 | 4.64 | 4.67 | 2.46 | 2.11 | 2.85 | 1.69 | 0.68 | 0.57 | 0.52 | 0.80 | -0.29 | -0.02 | -2.76 | -1.20 | -0.40 | 0.64 | -1.05 | -0.04 | -1.57 | 1.50 | 1.05 | 1.65 |
| Diluted Shares Outstanding | 14.2M | 14.18M | 13.91M | 13.55M | 14.18M | 15.91M | 15.82M | 15.62M | 15.69M | 15.78M | 15.63M | 15.02M | 14.82M | 14.43M | 14.12M | 13.79M | 13.71M | 13.77M | 12.78M | 11.1M | 5.34M | 3.44M | 2.15M | 1.48M | 494.72K | 494.31K | 502.36K | 541.52K | 506.79K | 483.46K | 407.39K |
| Basic Shares Outstanding | 13.96M | 13.89M | 13.45M | 13.37M | 14.08M | 15.71M | 15.67M | 15.62M | 15.57M | 15.52M | 15.07M | 14.76M | 14.43M | 14.07M | 13.78M | 13.61M | 13.59M | 13.53M | 12.46M | 11.1M | 5.34M | 3.44M | 2.15M | 1.48M | 494K | 493.27K | 501.39K | 541.52K | 506.79K | 474.16K | 407.39K |
| Dividend Payout Ratio | - | 17.62% | 21.38% | 45.38% | 42.17% | 40.96% | 197.25% | - | 30.06% | 21.59% | 21.7% | 28.55% | 33.39% | 26.52% | 35.93% | 73.38% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Project-based revenue lumpiness
As indicated by recent financial disclosures, Argan's top-line performance exhibits significant volatility, with quarterly revenue growth fluctuating from a 2.3% contraction in 2026Q3 to a 50.2% expansion in 2027Q1, reflecting the inherent unpredictability of large-scale EPC project cycles within the power infrastructure sector.
The revenue trajectory remains heavily dependent on the timing of project milestones and the successful conversion of the funded backlog. Investors should interpret these sharp swings not as a loss of market share, but as a structural reality of a business model reliant on multi-hundred-million-dollar energy contracts.
Based on reported income statements, Argan maintains a robust gross margin profile, peaking at 25.0% in 2026Q4, which significantly outperforms the broader EPC peer group, including firms like Quanta Services and MasTec, suggesting a distinct competitive advantage in specialized power plant engineering and project management.
This margin strength appears to stem from Argan's asset-light model and specialized technical expertise, which command a higher risk premium than generalist infrastructure services. However, the variability in gross margins warrants caution, as project-specific cost overruns or shifts toward lower-complexity renewable work could compress these historically elevated levels.
According to the provided financial data, Argan's net margin of 14.59% frequently exceeds its operating margin of 14.26%, implying that a meaningful portion of the company's bottom-line profitability is derived from interest income on its substantial cash reserves rather than core construction and engineering activities.
While the company's debt-free status is a clear strength, the reliance on interest income suggests that core operational earnings may be less robust than the headline net income figures indicate. Analysts should monitor whether this non-operating contribution masks potential underlying weakness in project execution or competitive pricing pressures.
As highlighted in recent SEC filings, Argan's heavy reliance on the Power Industry Services segment for the majority of its operating income creates a concentrated risk profile, where the absence of a diversified revenue stream could lead to significant earnings degradation if energy infrastructure demand cycles shift.
Short-term observers may focus on the potential for margin erosion as the company pivots toward renewable energy projects, which often carry lower barriers to entry and increased competition. The sustainability of current earnings levels appears contingent on the company's ability to maintain its specialized niche while navigating the transition away from traditional gas-fired power.
Quick answers to the most common questions about buying AGX stock.
For fiscal year 2026, Argan, Inc. (AGX) reported total revenue of $944.6M. This represents a 11067.6% increase compared to $8.5M in 1997.
Argan, Inc. (AGX) is profitable, generating $137.8M in net income for the fiscal year ending 2026 with a net profit margin of 14.6%.
Argan, Inc. (AGX) reported an operating income of $134.7M, resulting in an operating profit margin of 14.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Argan, Inc. (AGX) generated $193.7M in gross profit for the year, representing a gross profit margin of 20.5%. This demonstrates the company's core pricing power and production efficiency.