Argan, Inc. Announces Q4 & FY 2025 Financial Results
Argan, Inc. ,has announced its financial results for the fourth quarter and fiscal year ended January 31, 2025. The Company will discuss these results during an investor conference call today, March 27, 2025, at 5:00 p.m. ET.
Financial Performance Highlights
Fourth Quarter Results
- Revenue: $232.5 million, a 41% increase from $164.6 million in Q4 2024.
- Gross Profit: $47.6 million, up from $23.6 million, with a gross margin expansion to 20.5% from 14.4%.
- Net Income: $31.4 million, a substantial rise from $12.0 million.
- Diluted Earnings Per Share (EPS): $2.22, compared to $0.89 in the prior year.
- EBITDA: $39.3 million, more than doubling from $17.6 million.
- Cash Dividends Per Share: Increased to $0.375 from $0.300.
Full Fiscal Year 2025 Results
- Revenue: $874.2 million, a 52% increase from $573.3 million in fiscal 2024.
- Gross Profit: $141.0 million, up from $80.8 million, with a gross margin improvement to 16.1% from 14.1%.
- Net Income: $85.5 million, a significant increase from $32.4 million.
- Diluted EPS: $6.15, compared to $2.39 in fiscal 2024.
- EBITDA: $113.5 million, more than doubling from $51.3 million.
- Cash Dividends Per Share: Increased to $1.35 from $1.10.
Strong Balance Sheet and Expanding Project Backlog
As of January 31, 2025:
- Cash, Cash Equivalents, and Investments: $525.1 million, up from $412.4 million.
- Net Liquidity: $301.4 million, an increase of $56.5 million.
- Share Repurchase Treasury Stock: $105.6 million, up from $97.5 million.
- Project Backlog: $1.36 billion, a $604 million increase from the previous year.
CEO Commentary and Business Outlook
David Watson, President and CEO of Argan, stated:
“We closed fiscal 2025 with remarkable momentum, driven by strong execution across all business segments. Our power industry services division led the way, delivering a 65% revenue increase to $196.9 million in Q4 with a 21.3% gross margin. Our consolidated revenue grew 41%, and we achieved a record $2.22 EPS in the quarter.
Our $1.4 billion backlog reflects major project wins, including a 700 MW combined-cycle natural gas project in the U.S. and a 300 MW biofuel power plant in Ireland. Additionally, after Q4, we signed a contract for a 1.2 GW ultra-efficient natural gas-fired power plant in Texas, reinforcing our strong position in the energy infrastructure market.
As we enter fiscal 2026, we see a growing demand for power solutions amid the ‘electrification of everything’ trend, aging power infrastructure, and an urgent need for reliable, 24/7 energy sources. Our expertise in both natural gas and renewable energy projects positions us favorably in this evolving market.
With a robust project pipeline ahead, we are focused on supporting the ongoing expansion of power infrastructure, including projects critical for reshoring manufacturing, data centers, and EV charging networks. Given the early stage of this energy buildout and our three-to-four-year project timelines, we believe Argan is well-positioned for sustained long-term growth. Our financial strength and strong industry relationships will continue to drive value as we execute on future opportunities.”
Fourth Quarter Results
For the quarter ended January 31, 2025, Argan reported consolidated revenues of $232.5 million, reflecting a substantial 41% increase from $164.6 million in the same quarter last year. This growth was primarily driven by increased construction activity at key projects, including the 405 MW Midwest Solar Project, Trumbull Energy Center, Louisiana LNG Facility, and the Midwest Solar and Battery Projects. Offsetting this growth were reduced revenues from completed projects such as the Shannonbridge Power Project, ESB FlexGen Peaker Plants, and Guernsey Power Station.
The Company achieved a consolidated gross profit of $47.6 million, or 20.5% of revenues, benefiting from strong project execution and positive job closeouts. This marked a significant improvement from the previous year’s fourth-quarter gross profit of $23.6 million, or 14.4% of revenues, which was adversely affected by a loss on the Kilroot Project.
Selling, general, and administrative expenses (SG&A) rose to $14.9 million from $11.9 million in the prior-year quarter. However, as a percentage of revenues, SG&A declined to 6.4% from 7.2%.
Other income, net, totaled $6.0 million, primarily from investment income of approximately $5.5 million. The Company recorded an income tax expense of $7.3 million on pre-tax income of $38.6 million, compared to $5.0 million on $17.0 million in the previous year.
Argan closed the quarter with a net income of $31.4 million, or $2.22 per diluted share, compared to $12.0 million, or $0.89 per diluted share, in the prior-year quarter. EBITDA more than doubled to $39.3 million, up from $17.6 million.
The Company maintained a strong financial position, with cash, cash equivalents, and investments totaling $525.1 million as of January 31, 2025, compared to $412.4 million the previous year. Net liquidity increased to $301.4 million from $244.9 million, with no outstanding debt.
Fiscal Year 2025 Results
Power Industry Services
Revenues from power industry services surged by 66.5% to $693.0 million in Fiscal 2025, up from $416.3 million in Fiscal 2024. This growth was fueled by heightened construction activity at projects such as the Midwest Solar and Battery Projects, Trumbull Energy Center, 405 MW Midwest Solar Project, and Louisiana LNG Facility. These gains were partially offset by the completion of projects like Guernsey Power Station, ESB FlexGen Peaker Plants, Shannonbridge Power Project, and Kilroot Project. Power industry services accounted for 79.3% of consolidated revenues in Fiscal 2025. The project backlog for this segment nearly doubled to $1.3 billion from $0.6 billion in the previous year.
Industrial Construction Services
Revenues from industrial construction services grew 17.4% to $167.6 million from $142.8 million in the prior fiscal year. This segment represented 19.2% of total revenues for Fiscal 2025, compared to 24.9% in Fiscal 2024.
Consolidated Operating Results
Consolidated revenues reached $874.2 million in Fiscal 2025, a 52.5% increase from $573.3 million in Fiscal 2024.
Gross profit improved to $141.0 million, with a gross margin of 16.1%, up from $80.8 million and a 14.1% margin in the prior year. The improved margin was driven by a favorable project mix and contract types. However, both Fiscal 2025 and 2024 gross profits were impacted by losses on the Kilroot Project.
SG&A expenses increased to $52.8 million from $44.4 million but declined as a percentage of revenues to 6.0% from 7.7%.
Other income, net, totaled $23.0 million, with $21.2 million derived from investment earnings, benefiting from higher weighted average investment balances.
Income tax expense was $25.7 million, reflecting pre-tax income of $111.2 million, compared to $16.6 million on $48.9 million in Fiscal 2024.
Net income more than doubled to $85.5 million, or $6.15 per diluted share, compared to $32.4 million, or $2.39 per diluted share, in the prior year. EBITDA surged to $113.5 million from $51.3 million.
Argan’s robust financial standing, coupled with a strong project pipeline, positions the Company well for continued growth in the coming fiscal year.
