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ARLINGTON, Va. - Argan, Inc. (NYSE:AGX) announced Thursday that its subsidiary Gemma Power Systems has received full notice to proceed on an engineering, procurement and construction contract for the CPV Basin Ranch Energy Center in Ward County, Texas. The contract comes as Argan continues its impressive financial performance, with revenue growth of 29.16% over the last twelve months and a stock price that has more than doubled with a 115.08% year-to-date return, according to InvestingPro data.
The 1,350-megawatt combined-cycle power plant will feature GE 7HA.03 turbines and is being designed with an option to include carbon capture capability. Construction is expected to begin this fall with completion scheduled for 2028.
Gemma will provide full EPC services for the facility, with POWER Engineers, Inc. handling the detailed engineering work. Once operational, the plant will be capable of powering the equivalent of 850,000 West Texas homes using locally sourced natural gas.
"This project highlights our team’s expertise in delivering complex power generation facilities safely, on schedule, and to the highest standards of quality," said Charles E. Collins, IV, President and CEO of Gemma, according to the press release.
The construction phase is expected to support thousands of direct, indirect, and induced jobs, with long-term benefits anticipated for surrounding communities.
Peter Podurgiel, CPV’s President of Low Carbon Generation, stated that the project "will not only bring much needed, dispatchable generation to the State of Texas, it will provide direct economic benefits to Ward County."
Gemma Power Systems is a wholly owned subsidiary of Argan, which provides construction and related services to the power industry. The company has nearly 20 GW of installed capacity across various types of power facilities. Financially, Argan maintains a strong balance sheet with more cash than debt and has maintained dividend payments for 15 consecutive years with a current dividend yield of 0.68%. InvestingPro analysis indicates the company has an overall financial health score rated as "GREAT," with particularly strong price momentum. Investors seeking deeper insights into Argan’s financial position can access the comprehensive Pro Research Report, available among the 1,400+ US equities covered on the platform.
In other recent news, Argan Inc. reported its Q2 FY2026 earnings, with earnings per share (EPS) of $2.50, significantly exceeding the forecast of $1.64. However, the company reported revenues of $237.7 million, which fell short of the expected $243.97 million. JPMorgan recently upgraded Argan’s stock from Neutral to Overweight, citing the company as an "underappreciated beneficiary" of AI-driven power demand, and raised the price target to $315.00. Meanwhile, GLJ Research initiated coverage on Argan with a Hold rating and a $251.00 price target, noting that investor expectations have surpassed management’s capacity to meet demand. Additionally, Argan announced a 33% increase in its quarterly cash dividend to $0.50 per share, marking the third consecutive annual dividend increase. This new dividend rate will be payable on October 31, 2025, to stockholders of record as of October 23, 2025. These developments reflect ongoing interest and activity surrounding Argan’s financial and operational strategies.
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