Argan raises quarterly dividend by 33% to $0.50 per share

Published 10/09/2025, 21:14
Argan raises quarterly dividend by 33% to $0.50 per share

ARLINGTON, Va. - Argan, Inc. (NYSE:AGX) announced Wednesday that its Board of Directors has approved a 33% increase in its quarterly cash dividend from $0.375 to $0.50 per common share, bringing the dividend yield to 0.69%. The dividend will be payable on October 31, 2025, to stockholders of record as of October 23, 2025. According to InvestingPro data, this marks a significant milestone for the company, which has maintained dividend payments for 15 consecutive years.

This marks the third consecutive annual dividend increase for the construction services provider, which specializes in power industry projects. The new dividend rate translates to $2.00 per share on an annual basis. With a market capitalization of $3.12 billion and strong financial health metrics, Argan currently appears fairly valued based on InvestingPro’s Fair Value analysis.

"As Argan continues to deliver strong growth and profitability, and with our optimism around the robust pipeline of new opportunities we are seeing, we have increased our quarterly dividend," said David Watson, President and Chief Executive Officer of Argan, in a press release statement.

Argan provides construction and related services to the power industry through its subsidiaries Gemma Power Systems and Atlantic Projects Company, focusing on natural gas-fired power plants and renewable energy facilities. The company also owns The Roberts Company, an industrial construction and fabrication business, and SMC Infrastructure Solutions, which provides telecommunications infrastructure services.

The dividend increase comes as the company reports seeing increased demand for reliable energy resources to strengthen the power grid amid ongoing electrification trends.

In other recent news, Argan Inc. reported its Q2 FY2026 earnings, revealing a strong performance that caught the attention of investors. The company achieved earnings per share (EPS) of $2.50, which was a notable improvement over the forecasted $1.64. This represents a 52.44% surprise in EPS. However, the company’s revenues were slightly below expectations, coming in at $237.7 million compared to the anticipated $243.97 million. Despite the revenue miss, the earnings results were well-received by investors. This performance highlights Argan’s ability to exceed earnings expectations, which is a key metric for investors. These developments are part of the recent updates concerning the company.

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