Industrial contractor Argan's Q2 revenue beats analyst estimates on strong Power segment execution

Argan

02/09/2026 21:20

Overview
US power plant builder's fiscal Q2 revenue rose 62%, beating analyst expectations
Diluted EPS for fiscal Q2 rose to $3.76 from $2.50 a year earlier
Quarterly dividend increased to $0.50 per share

Outlook
Company did not provide specific financial guidance for future quarters or the full year

Result Drivers
POWER SEGMENT EXECUTION - Co said Power segment revenue grew 53% year-over-year to $301 mln, driven by ramp-up of construction activities on several contracts
PROJECT MIX - Co said gross margin improvement was primarily due to changing mix of projects and contract types and strong execution in Power segment
TELEDATA EXPANSION - Co said acquisition of ValCor Communications expanded geographic presence and client base in Teledata segment

Company press release: ID:nBw4VVCV4a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$384 mln
$300.61 mln (5 Analysts)
Q2 EPS
 
$3.76
 
Q2 EBITDA
 
$67.6 mln
 
Q2 Gross Profit
 
$74.2 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "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 $700.00, about 72.9% above its September 1 closing price of $404.75
The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 55 three months ago

Reuters Recommended Reads
Sept 2 - Daktronics Q1 revenue beats on strength in transportation, live events segments
Aug 31 - SAIC Q2 revenue beats on contract growth, SilverEdge deal; lifts FY outlook
Aug 31 - Cheniere completes Corpus Christi Stage 3 LNG expansion project

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)