Argan (AGX) Reports 52.1% Revenue Growth

Argan, Inc. (NYSE: AGX) has reported its financial results for the first quarter of fiscal year 2025, which ended on April 30, 2024. The company's consolidated revenues for the quarter were $157.7 million, marking a significant increase of 52.1% from the comparable prior year quarter, when revenues were $103.7 million. This growth was driven by strong performance at both Gemma Power Systems and the Roberts Company.

The company's net income for the quarter was $7.9 million, representing a substantial increase from the $2.1 million reported for the same quarter the previous year. Similarly, EBITDA (earnings before interest expense, taxes, depreciation, and amortization) saw a remarkable increase, reaching $11.9 million, compared to $3.6 million in the same quarter of the previous year.

Argan's cash, cash equivalents, and investments totaled $416.4 million as of April 30, 2024, compared to $412.4 million as of January 31, 2024. Additionally, the company reported net liquidity of $246.7 million at April 30, 2024, compared to $244.9 million at January 31, 2024, with no debt.

Notably, the company closed the first quarter with a backlog of $824 million, which includes over $300 million in renewable projects. The project pipeline remains robust, reflecting the growing urgency to bring additional energy resources online to meet the anticipated rise in power demand driven by factors such as high-demand data centers, the onshoring of manufacturing operations, and the expansion of electric vehicle use.

Despite challenges related to the Kilroot Power Station project in Northern Ireland, which incurred a loss of $2.6 million during the quarter, Argan's president and chief executive officer, David Watson, expressed optimism about the company's opportunities to participate in renewable projects as well as natural gas facilities.

Following these announcements, the company's shares moved 0.4%, and are now trading at a price of $69.14. For more information, read the company's full 8-K submission here.

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