Argan Q2 revenue misses analyst expectations

Argan

04/09/2025 21:14

Overview

Argan, which provides services in power industry, posts 4.7% rise in  Q2 revenue, but misses analyst expectations

Adjusted EPS for fiscal Q2 was $2.50

Company reports record project backlog of $2.0 bln

Outlook

Argan sees strong demand for capabilities across all business segments

Company positioned to benefit from demand for reliable energy resources

Argan expects to capitalize on electrification and power grid needs

Result Drivers

PROJECT ACTIVITY - Increased project activity and higher contract backlog drove revenue growth, despite missing analyst expectations

GROSS MARGIN IMPROVEMENT - Improved gross profit margins in Power Industry Services segment contributed to higher gross profit

PROJECT MILESTONES - Completion of LNG project and progress in renewable projects supported results, aided by favorable weather conditions

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$237.70 mln
$244 mln (3 Analysts)
Q2 EPS
$2.5
Q2 Net Income
$35.30 mln
Q2 EBITDA
$36.20 mln
Q2 Gross Profit
$44.30 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the construction & engineering peer group is "buy"

Wall Street's median 12-month price target for Argan Inc is $228.00, about 0.4% above its September 3 closing price of $227.03

The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 34 three months ago

Press Release: ID:nBw12RYJVa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)