Industrial contractor Argan's Q3 revenue misses estimates

Argan

04/12/2025 21:20

Overview

Argan fiscal Q3 revenue declines 2.3% yr/yr, missing analyst expectations

Net income for fiscal Q3 rises to $30.7 mln from $28.0 mln yr/yr

Company reports record backlog of $3.0 bln, driven by new gas-fired projects

Outlook

Company expects to add projects to backlog as construction progresses

Argan anticipates revenue growth and enhanced profitability for years to come

Result Drivers

RECORD BACKLOG - Driven by two new gas-fired projects in Texas, contributing to a backlog of $3.0 bln

REVENUE DECLINE - Timing of work performed and project mix led to a 2.3% revenue decline

IMPROVED MARGINS - Gross profit margins improved in Power Industry Services and Industrial Construction Services segments

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$251.20 mln
$263.84 mln (4 Analysts)
Q3 EPS
$2.17
Q3 Net Income
$30.70 mln
Q3 EBITDA
$40.30 mln
Q3 Gross Profit
$46.90 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "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 $370.00, about 5.4% above its December 3 closing price of $351.09

The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 30 three months ago

Press Release: ID:nBw1gwKJ3a

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