Overview

• U.S. power plant builder's fiscal Q1 revenue rose 50% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q1 rose to $3.24

• Results driven by higher revenues and improved margins in Power segment

Outlook

• Company says demand for energy infrastructure remains robust, driven by electrification and data center growth

• Argan expects to complete new North Carolina fabrication facility in Q3 fiscal 2027

• Company says it is well positioned to capitalize on current demand environment for energy and industrial infrastructure

Result Drivers

• POWER SEGMENT EXECUTION - Revenue growth driven by ramp-up of construction activities on recently awarded contracts in Power segment

• MARGIN IMPROVEMENT - Higher gross profit margin attributed to shift in project and contract mix, strong execution, and early completion of Midwest Solar and Battery Project

• INDUSTRIAL SEGMENT DEMAND - Increased demand in industrial segment, including new data center contract and expansion of fabrication capacity

Company press release: ID:nBw5ZFjyCa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$290.95 mln	$256.03 mln (5 Analysts)
Q1 EPS		$3.24
Q1 EBITDA		$54.40 mln
Q1 Gross Profit		$61.11 mln
Q1 Operating Income		$45.40 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 $518.00, about 24.5% below its June 3 closing price of $686.37

• The stock recently traded at 58 times the next 12-month earnings vs. a P/E of 47 three months ago

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