Argan Inc. boosts share repurchase program to $150 million

ARLINGTON, Va. - Argan, Inc. (NYSE: AGX), a company specializing in construction services for the power industry, has announced an increase in its share repurchase program from $125 million to $150 million. The company's Board of Directors also declared a quarterly cash dividend of $0.375 per common share, scheduled for payment on April 30, 2025, to stockholders of record as of April 22, 2025. According to InvestingPro data, Argan has maintained dividend payments for 15 consecutive years and increased dividends for three straight years, with a current yield of 1.06%.

David Watson, President and CEO of Argan, expressed the Board's confidence in the company's prospects for growth and its commitment to shareholder value. The announcement comes shortly after Argan's subsidiary, Gemma Power Systems, received a notice to proceed with a contract for a 1.2 gigawatt natural gas-fired power plant with Sandow Lakes Energy Company, LLC, expected to start in the summer.

Argan's services include engineering, procurement, and construction for natural gas-fired and renewable energy facilities, as well as commissioning, maintenance, project development, and technical consulting through its operations Gemma Power Systems and Atlantic Projects Company. Additionally, Argan owns The Roberts Company, a provider of industrial construction and plant services, and SMC Infrastructure Solutions, which offers telecommunications infrastructure services.

The company's forward-looking statements, as defined by federal securities laws, include expectations of new contracts and the successful completion of projects. However, these statements are subject to risks and uncertainties, including those outlined in the company's SEC filings, which could affect actual results and the timing of specific events.

This expansion of the share repurchase program and the declaration of a dividend reflect Argan's current financial strategies as it continues to navigate the market and leverage its recognized capabilities within the industry. The information is based on a press release statement from Argan, Inc.

In other recent news, Argan Inc. reported strong financial results for the fourth quarter of fiscal year 2025, exceeding both earnings and revenue forecasts. The company achieved earnings per share of $2.22, significantly surpassing the projected $1.15, and reported revenue of $232.5 million, above the expected $197.5 million. This performance was bolstered by a 41% year-over-year increase in revenue and a gross margin rise to 20.5% from the previous year's 14.4%. Argan's project backlog also saw an 80% increase, reaching $1.4 billion, indicating strong future demand.

Additionally, Lake Street Capital Markets upgraded Argan's stock rating from Hold to Buy, influenced by the company's robust fourth-quarter results. The analyst highlighted Argan's improved gross margins and EBITDA, particularly in the Power segment, as key factors for the upgrade. The company's management expressed optimism about securing new power plant projects, which could significantly increase the project backlog in the coming months.

Lake Street's revised outlook for Argan reflects confidence in its ability to maintain strong margins and capitalize on the expanding project pipeline. The company's strategic focus on both natural gas and renewable energy projects positions it well for continued growth, as emphasized by its leadership. These recent developments underscore Argan's competitive position in the energy sector and its potential for sustained expansion.

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