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Argan: Strong Backlog, Secular Growth Tailwinds, And Fair Valuations
Seeking Alpha· 2025-07-12 13:08
Company Overview - Argan, Inc. (NYSE: AGX) is positioned for strong revenue growth, supported by a record backlog of $1.9 billion, which is expected to exceed $2 billion by year-end, providing solid visibility into near-term earnings [1] Industry Insights - The growth of Argan, Inc. is driven by increasing power demand, indicating a favorable market environment for the company [1]
Argan: The Stock That Could Fuel America's AI
Seeking Alpha· 2025-07-07 19:52
Argan, Inc. (NYSE: AGX ) is well-positioned to benefit from the surge in energy demand driven by AI, data centers and electric vehicles, while a large share of US thermal power plants built in the post-World War II era (1950s-1970s) are rapidlyI am a finance professional with over ten years of experience in the markets, specializing in macroeconomic analysis, portfolio management, and equity research. I work as a portfolio manager at an Italian asset management firm, where I oversee multi-asset strategies a ...
SA Quant Top 10: A Stellar Mid-Year Result
Seeking Alpha· 2025-06-23 06:00
Group 1 - The analysis of SA Quant's performance at the beginning of 2025 involved evaluating the top ten selection as an equal-weight portfolio and comparing quant grade ratings to forward consensus estimates [1] - The analyst has over 30 years of experience in critically analyzing various industries including airlines, oil, retail, mining, fintech, and ecommerce, as well as macroeconomic, monetary, and political drivers [1] - The analyst has lived through multiple crises such as the dotcom bubble, 9/11, the great recession, and the Covid-19 pandemic, which contributes to a diverse base of experience applicable across multiple disciplines [1]
Argan: The Real Growth May Still Be Ahead, I Am Reiterating Buy
Seeking Alpha· 2025-06-08 04:21
Core Insights - Argan (NYSE: AGX) reported a strong performance in its first quarter of FY26, driven by robust demand in its core power services segment [1] Company Performance - The company is expected to maintain its momentum due to a favorable demand environment for its services [1] Industry Outlook - The overall market conditions appear to be supportive for companies with strong foundations, particularly in the technology, industrial, and conglomerate sectors [1]
Argan Q1 Is Another Win For Fellow Shareholders
Seeking Alpha· 2025-06-06 11:27
Group 1 - John "Jack" Bowman is a registered investment advisor and research analyst focusing on macroeconomics and income-focused investments [1] - He contributes to the Sungarden Investors Club on Seeking Alpha, where he teaches investors about risk management and total return investing [2] - Bowman co-hosts weekly live sessions discussing market thoughts and ongoing trades, emphasizing that investors have the tools to manage portfolios with less risk [2] Group 2 - The approach taken by Bowman combines his experience as a former teacher with his current role as an investment advisor [2] - The educational aspect of Bowman's work highlights the lack of teaching on the effective use of investment tools [2] - The quote from Timothy Snyder suggests that historical lessons can guide current investment strategies [3]
Argan: Fundamental Momentum Continues, But Is It Sustainable?
Seeking Alpha· 2025-06-06 01:50
Core Viewpoint - Argan Inc. (NYSE: AGX) has experienced a significant price increase of 120% over the past 12 months, but current price charts indicate potential weakness, coupled with an expensive valuation [1]. Company Analysis - The company is identified as a value-focused investment opportunity, with a preference for stocks that are undervalued and have near-term catalysts [1]. - The investment horizon for the company ranges from one quarter to two years, indicating a medium-term investment strategy [1]. Market Context - The analysis is part of a broader focus on sectors including chemicals, homebuilders, building materials, industrials, and metals & mining, suggesting a diversified approach to investment research [1].
Argan: I Was Horribly Wrong (Rating Upgrade)
Seeking Alpha· 2025-06-05 11:13
Group 1 - The article emphasizes that even highly experienced investors, such as Warren Buffett, can make mistakes, indicating that less seasoned investors are also prone to errors [1] - Crude Value Insights provides an investment service focused on the oil and natural gas sector, emphasizing cash flow and the potential for value and growth in companies that generate it [1] - Subscribers to Crude Value Insights gain access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live discussions about the sector [2] Group 2 - The service offers a two-week free trial for new subscribers, promoting an opportunity to explore the oil and gas market [3]
Argan(AGX) - 2026 Q1 - Earnings Call Presentation
2025-06-05 08:11
P R E S E N T A T I O N First Quarter Fiscal 2026 Results 2 Q1 2026 Highlights 3 • Consolidated Q1 revenues increased 23% year over year with gross margin of 19% • Q1 earnings per diluted share of $1.60, up $1.02 year over year • Q1 EBITDA of $30M, or 15.6% as a percentage of revenue • Record project backlog of $1.9 billion at April 30, 2025 • Q1 backlog additions include a 1.2 GW ultra-efficient natural gas-fired project • Solid balance sheet: large cash and net liquidity position; no debt • Paid quarterly ...
Argan(AGX) - 2026 Q1 - Earnings Call Transcript
2025-06-04 22:02
Financial Data and Key Metrics Changes - The company reported consolidated revenue growth of 23% to $193.7 million for the first quarter of fiscal 2026, with a gross margin of 19% [6][21] - Net income increased to approximately $22.6 million or $1.6 per diluted share, up from $7.9 million or $0.58 per diluted share year over year [6][24] - EBITDA rose to $30.3 million, representing 15.6% of revenues, compared to $11.9 million or 7.5% for the same period last year [6][25] - The company achieved a record backlog of $1.9 billion as of April 30, 2025, reflecting a 36% increase from January 31, 2025 [7][17] Business Segment Data and Key Metrics Changes - Power Industry Services segment revenues increased by 45% to $160 million, contributing 83% of total revenues, with a pretax book income of approximately $31 million [11] - Industrial Construction Services segment revenues decreased to $29 million from $44 million, contributing 15% of total revenues, with a pretax book income of approximately $2 million [11][12] - Telecommunications Infrastructure Services segment contributed 2% of total revenues, with a gross margin of 18% [13][23] Market Data and Key Metrics Changes - The company noted a substantial increase in power demand, reaching its highest level in two decades, driven by AI data centers, onshoring of manufacturing, and electric vehicle adoption [8][14] - The current project backlog is comprised of approximately 67% natural gas projects and 28% renewable energy projects [14][15] Company Strategy and Development Direction - The company plans to maintain its presence in renewable energy while focusing on natural gas projects as the core growth engine [18][29] - The company aims to leverage its capabilities in constructing both traditional and renewable energy facilities to meet the increasing demand for reliable power [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment, expecting attractive project opportunities for the next decade [9][30] - The company highlighted the urgency to meet power consumption increases coinciding with aging infrastructure and underinvestment in energy [29][30] Other Important Information - The company has a strong balance sheet with $546 million in cash and investments, net liquidity of $315 million, and no debt as of April 30, 2025 [9][26] - The board increased the share repurchase program to $150 million, reflecting a disciplined capital allocation strategy [9][28] Q&A Session Summary Question: What does the pipeline look like for the rest of the year? - Management indicated a strong pipeline and expects to add several power industrial jobs, potentially exceeding $2 billion in backlog later this year [35][37] Question: What is the outlook for the Industrial business segment? - Management acknowledged a slight contraction but noted strong interest in the segment, expecting revenues to increase meaningfully over the next several quarters [39] Question: Can you quantify the excess margin from projects like Trumbull? - Management stated that the gross margins reflect strong execution and a favorable project mix, expecting to exceed last year's margin profile [42] Question: Is the current project timeline of three to four years a permanent change? - Management attributed the extended timeline primarily to supply chain issues, indicating that it may not revert to previous timelines [48]
Argan(AGX) - 2026 Q1 - Earnings Call Transcript
2025-06-04 22:00
Financial Data and Key Metrics Changes - The company reported consolidated revenue growth of 23% to $193.7 million for Q1 fiscal 2026, with a gross margin of 19% [6][22] - Net income increased to approximately $23 million or $1.6 per diluted share, up from $7.9 million or $0.58 per diluted share year over year [6][23] - EBITDA rose to $30.3 million, representing 15.6% of revenues, compared to $11.9 million or 7.5% in the same period last year [6][24] Business Segment Data and Key Metrics Changes - Power Industry Services segment revenues increased by 45% to $160 million, contributing 83% of total revenues, with a pretax book income of approximately $31 million [11][22] - Industrial Construction Services segment revenues decreased to $29 million from $44 million, contributing 15% of total revenues, with a pretax book income of approximately $2 million [11][22] - Telecommunications Infrastructure Services segment contributed 2% of total revenues, with a gross margin of 18% [13][23] Market Data and Key Metrics Changes - The company reported a record backlog of $1.9 billion as of April 30, 2025, reflecting a 36% increase from January 31, 2025 [7][17] - The backlog is comprised of approximately 67% natural gas projects and 28% renewable projects, indicating a strong demand for both types of energy sources [14][18] Company Strategy and Development Direction - The company is focused on capitalizing on the growing demand for energy infrastructure, particularly in the construction of natural gas and renewable energy facilities [7][28] - The strategy includes maintaining a strong balance sheet, returning capital to shareholders, and exploring M&A opportunities to enhance capabilities [8][27] - The company aims to strengthen its leadership role in energy infrastructure construction, emphasizing disciplined risk management and project execution [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment for energy infrastructure, expecting attractive project opportunities for the next decade [7][28] - The company highlighted the urgency to meet increasing power consumption needs coinciding with aging infrastructure and underinvestment in energy resources [28][29] - Management noted that combined cycle projects typically take three to four years to complete, indicating a long-term growth outlook [30] Other Important Information - The company has a strong liquidity position with $546.5 million in cash and investments, net liquidity of $315 million, and no debt as of April 30, 2025 [8][25] - A quarterly dividend of 37.5¢ was paid, and the share repurchase program was increased to $150 million [8][27] Q&A Session Summary Question: What does the pipeline look like for the rest of the year? - Management indicated a strong pipeline and expects to add several power industrial jobs, potentially exceeding $2 billion in backlog later this year [35][36] Question: What is the outlook for the Industrial business? - Management acknowledged a slight contraction in the previous quarter but expressed confidence in revenue growth due to strong interest in onshoring U.S. manufacturing [38][39] Question: Can you quantify the excess margin from projects like Trumbull? - Management noted that gross margins reflect strong execution and a favorable project mix, expecting to exceed last year's margin profile [42] Question: Is there an optimal backlog level if most of it is natural gas? - Management stated that backlog levels can fluctuate significantly, but they expect an overall increase in backlog throughout the year [43] Question: What is driving the extended project timelines? - Management attributed the longer timelines primarily to supply chain issues, indicating that the current typical timeframe is three to four years [46]