Argan stock surges 11% as Q4 earnings, revenue top estimates

Published 27/03/2025, 21:18
Argan stock surges 11% as Q4 earnings, revenue top estimates

ARLINGTON, Va. - Argan , Inc. (NYSE:AGX) reported fourth quarter earnings that significantly exceeded analyst expectations, sending shares soaring 11.8% in after-hours trading Thursday.

The energy infrastructure construction company posted adjusted earnings per share of $2.22 for the quarter ended January 31, 2025, handily beating the analyst consensus estimate of $1.15. Revenue came in at $232.47 million, also topping expectations of $197.5 million.

Argan’s fourth quarter revenue grew 41% YoY to $232.5 million, driven by increased construction activities across several major projects. Gross profit nearly doubled to $47.6 million, with gross margin expanding to 20.5% from 14.4% a year ago.

"Our fourth quarter performance continued the momentum we saw throughout fiscal 2025, providing a strong close to a year characterized by exceptional execution across all of our business segments," said David Watson, President and CEO of Argan.

The company’s project backlog grew to $1.4 billion at quarter-end, up from $757 million a year earlier. This included new contracts for a 700 MW natural gas project in the U.S. and a 300 MW biofuel plant in Ireland.

For the full fiscal year 2025, Argan reported net income of $85.5 million, or $6.15 per diluted share, compared to $32.4 million, or $2.39 per share, in fiscal 2024. Annual revenue increased 52.5% to $874.2 million.

Looking ahead, Watson expressed optimism about growth opportunities, citing increased demand for reliable energy sources amid aging power infrastructure and underinvestment in natural gas facilities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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