AGX

Argan is an engineering and construction firm focused on power generation (natural gas and renewables) that is firing on all cylinders as electricity-demand and data-center buildout drives new plant construction. FY2026 revenue grew 8.1% to $945M but earnings exploded: net income up 61.2% to $138M, operating income up 52.7% to $135M, gross profit up 37.4% to $194M, and EPS up 58.4% to $9.74. Margins expanded impressively — gross margin to 20.5% and a 29.8% ROE — reflecting strong project execution and favorable mix. Cash generation was extraordinary: operating cash flow surged 147.5% to $415M against trivial capex of $3.88M, lifting cash 133.7% to $339M. The business is virtually capital-light and self-funding, and it returned cash via a growing dividend ($24.3M, +32.9%) and buybacks ($9.88M).

The revenue trajectory confirms a powerful upcycle — from $455M (FY2023) to $945M (FY2026) — driven by gas-fired and renewable EPC demand. The balance sheet looks fine once understood: the 1.57x liabilities/equity is dominated by current liabilities ($711M), largely customer billings-in-excess on long-term construction contracts, not financial debt. Equity grew 31.4% to $462M.