Argan declares quarterly dividend of $0.375 per share

Published 17/06/2025, 21:22
Argan declares quarterly dividend of $0.375 per share

ARLINGTON, Va. - Argan, Inc. (NYSE: AGX) announced Tuesday that its Board of Directors has declared a regular quarterly cash dividend of $0.375 per share of common stock, payable on July 31, 2025, to stockholders of record as of July 23, 2025. The company, currently valued at $2.9 billion, has demonstrated strong financial health with an impressive return of 182% over the past year, according to InvestingPro data.

The engineering and construction services provider has maintained a consistent dividend payment history since 2011, returning over $217 million to shareholders during this period. The company’s quarterly dividend has increased by 50% over the past two years, rising from $0.25 to the current $0.375 per share, resulting in a current yield of 0.69%. InvestingPro analysis shows the company has maintained dividend payments for 15 consecutive years, with a 25% dividend growth in the last twelve months.

"This growth reflects Argan’s strong balance sheet, confidence in future earnings growth, and long-term commitment to returning capital to shareholders," said David Watson, President and Chief Executive Officer of Argan, in a press release statement.

Watson also acknowledged Rainer Bosselmann, the company’s founder and former Chief Executive Officer and Chairman, who recently completed his final term as a director.

Argan’s primary business involves providing construction and related services to the power industry, with a focus on engineering, procurement, and construction of natural gas-fired power plants and renewable energy facilities. The company operates through several subsidiaries including Gemma Power Systems, Atlantic Projects Company, The Roberts Company, and SMC Infrastructure Solutions.

In other recent news, Argan Inc. reported impressive financial results for Q1 FY2026, surpassing earnings and revenue expectations. The company achieved an earnings per share (EPS) of $1.60, significantly above the projected $0.90, and generated $193.7 million in revenue, exceeding the forecasted $175.8 million. This represents a 23% increase in revenue year-over-year, with the Power Industry Services segment contributing significantly by increasing its revenue by 45% to $160 million. Argan maintains a robust cash position with $546.5 million in cash and investments and no debt. The company also announced a record project backlog of $1.9 billion, with expectations to exceed $2 billion in the next six months. Analysts from Lake Street Capital have shown confidence in the company’s growth trajectory, noting the strong project pipeline and potential for further backlog increases. Additionally, Argan has been proactive in returning capital to shareholders through dividends and share repurchases, with the board increasing the share repurchase program to $150 million.

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