The record revenue and earnings beat confirm strong execution in the Power segment amid robust energy infrastructure demand. However, the declining backlog ($2.5B from $2.9B) and absence of explicit guidance warrant caution — monitor the upcoming earnings call for pipeline replenishment updates and any forward-looking commentary on project awards. The strong cash position and zero-debt balance sheet provide flexibility for continued share repurchases and M&A.
Price Chart
Executive Summary
Argan (AGX) reported Q2 FY2027 results with record revenue of $384M (up 61.5% YoY) and record net income of $53.3M (up 51.1% YoY), well above consensus estimates. The Power segment drove the beat with 53% revenue growth. Backlog declined sequentially to $2.5B from $2.9B, partially offsetting the strong headline numbers. No specific forward guidance was provided.
Key Financial Metrics
Key Facts
- Record quarterly revenue of $383.976M, up 61.5% YoY from $237.743M
- Record net income of $53.302M, up from $35.275M YoY (51.1% increase)
- Diluted EPS of $3.76 vs $2.50 YoY, significantly above consensus estimate of $2.67
- Adjusted EBITDA of $70.030M, up from $38.490M YoY (82% increase)
- Power segment revenue grew 53% YoY to $301M at 22% gross margin
- Backlog decreased to ~$2.5B from ~$2.9B at January 31, 2026
- Cash and investments at $1.03B with no debt; net liquidity of $440.4M
- Acquired ValCor Communications in Teledata segment post-quarter
- Share repurchase treasury stock increased to $144.9M from $114.4M YTD
Financial Impact
Revenue beat consensus by ~27.7%; EPS of $3.76 beat $2.67 estimate by 40.8%
Risk Factors
- Backlog declining 14% from year-start level to $2.5B may signal slowing future revenue conversion
- Gross margin dipped to 19.3% from 21.0% in Q1 due to mix shift and underperformance in Industrial/Teledata segments
- No quantitative forward guidance provided, limiting visibility into H2 FY2027
- Industrial and Teledata segments underperformed, partially offsetting Power segment strength
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-104735 |
| Document: agx-20260902x8k.htm | 0001104659-26-104735 |
| Document: 0001104659-26-104735-index-headers.html | 0001104659-26-104735 |
| Document: 0001104659-26-104735-index.html | 0001104659-26-104735 |
| Document: 0001104659-26-104735.txt | 0001104659-26-104735 |
| 8-K Data (Synthetic) | 0001104659-26-104735 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 2, 2026 7w ago | 8-K | $411.77 $377.95 | ▼ −8.21% | ▼ −7.09% | $329.34 (−20.02%) |
Aug 3, 2026 12w ago | Institutional Cluster | $592.66 $424.99 | ▼ −28.29% | ▼ −29.53% | $329.34 (−44.43%) |
Jun 17, 2026 18w ago | Insider Cluster | $738.85 $547.51 | ▲ +25.90% | ▲ +26.43% | $329.34 (+55.43%) |
Jun 16, 2026 18w ago | Insider Cluster | $719.52 $547.51 | ▲ +23.91% | ▲ +25.22% | $329.34 (+54.23%) |
Jun 10, 2026 19w ago | 8-K | $623.66 $687.49 | ▲ +10.23% | ▲ +8.34% | $329.34 (−47.19%) |
Jun 4, 2026 20w ago | 8-K | $694.72 $725.23 | ▲ +4.39% | ▲ +2.53% | $329.34 (−52.59%) |
Apr 21, 2026 26w ago | DEFA14A | $651.68 $639.58 | ▼ −1.86% | ▼ −5.02% | $329.34 (−49.46%) |
Apr 21, 2026 27w ago | Insider Cluster | $614.92 $664.76 | ▲ +8.11% | ▲ +3.19% | $329.34 (−46.44%) |
Apr 13, 2026 28w ago | Insider Cluster | $597.95 $683.52 | ▼ −14.31% | ▼ −6.58% | $329.34 (+44.92%) |
Apr 13, 2026 28w ago | Insider Cluster | $597.95 $683.52 | ▼ −14.31% | ▼ −6.58% | $329.34 (+44.92%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers