Argan | 10-Q: FY2026 Q3 Revenue Misses Estimate at USD 251.15 M

Revenue: As of FY2026 Q3, the actual value is USD 251.15 M, missing the estimate of USD 264.93 M.

EPS: As of FY2026 Q3, the actual value is USD 2.17, beating the estimate of USD 1.7995.

EBIT: As of FY2026 Q3, the actual value is USD 25.57 M.

Financial Metrics by Segment

Power Industry Services

• Revenues: $195.5 million for the three months ended October 31, 2025, compared to $212.1 million for the same period in 2024, a decrease of 7.8%.
• Cost of Revenues: $156.7 million for the three months ended October 31, 2025, compared to $173.3 million for the same period in 2024, a decrease of 9.5%.
• Gross Profit: $38.8 million for the three months ended October 31, 2025, compared to $38.8 million for the same period in 2024.
• Gross Profit Margin: 19.8% for the three months ended October 31, 2025, compared to 18.3% for the same period in 2024.

Industrial Construction Services

• Revenues: $49.4 million for the three months ended October 31, 2025, compared to $41.3 million for the same period in 2024, an increase of 19.4%.
• Cost of Revenues: $42.5 million for the three months ended October 31, 2025, compared to $36.8 million for the same period in 2024, an increase of 15.6%.
• Gross Profit: $6.9 million for the three months ended October 31, 2025, compared to $4.6 million for the same period in 2024.
• Gross Profit Margin: 13.9% for the three months ended October 31, 2025, compared to 11.1% for the same period in 2024.

Telecommunications Infrastructure Services

• Revenues: $6.3 million for the three months ended October 31, 2025, compared to $3.6 million for the same period in 2024, an increase of 75.8%.
• Cost of Revenues: $5.0 million for the three months ended October 31, 2025, compared to $2.6 million for the same period in 2024, an increase of 87.5%.
• Gross Profit: $1.3 million for the three months ended October 31, 2025, compared to $0.9 million for the same period in 2024.
• Gross Profit Margin: 21.2% for the three months ended October 31, 2025, compared to 26.1% for the same period in 2024.

Cash Flow

• Operating Cash Flow: $242.4 million for the nine months ended October 31, 2025, compared to $122.9 million for the same period in 2024.
• Free Cash Flow: Not explicitly stated, but significant cash flow from operations and investments in short-term and available-for-sale securities.

Future Outlook and Strategy

• Core Business Focus: The company is committed to the construction of state-of-the-art, natural gas-fired power plants and targets opportunities in natural gas-fired power plants, renewable energy plants, energy storage, and industrial construction in the U.S., Ireland, and the U.K.
• Project Backlog: As of October 31, 2025, the consolidated project backlog was $3.0 billion, compared to $1.4 billion as of January 31, 2025.
• New Projects: Several new projects have been initiated, including a 860 MW natural gas-fired power plant, a 1.4 GW combined-cycle natural gas-fired power plant, and a 170 MW power plant in Ireland.

Unique Metrics

• Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): $40.3 million for the three months ended October 31, 2025, compared to $37.5 million for the same period in 2024.
• Net Income: $30.7 million for the three months ended October 31, 2025, compared to $28.0 million for the same period in 2024.
• Diluted Earnings Per Share (EPS): $2.17 for the three months ended October 31, 2025, compared to $2.00 for the same period in 2024.