Financial Data and Key Metrics Changes - Consolidated revenue for the second quarter was $238 million, reflecting a 5% increase compared to the same quarter last year and a sequential increase of 23% from the first quarter of fiscal 2026 [4][18] - Gross margins improved to 18.6% from 13.7% in the second quarter of fiscal 2025, with record net income of $35.3 million, or $2.50 per diluted share, compared to $18.2 million, or $1.31 per diluted share for the same period last year [5][20] - EBITDA for the quarter was $36.3 million, representing an EBITDA margin of 15.2%, up from 10.9% in the second quarter of the previous fiscal year [5][21] Business Line Data and Key Metrics Changes - Power industry services segment revenues increased by 13% to $197 million, accounting for 83% of total revenues, with pre-tax book income of approximately $35 million [8] - Industrial construction services segment revenues decreased to $36 million from $50 million in the same quarter last year, but showed a sequential growth of 23% from $29 million in the first quarter of fiscal 2026 [8][9] - Telecommunications infrastructure services segment contributed 2% of total revenues, achieving a record backlog [10] Market Data and Key Metrics Changes - The backlog reached a record $2 billion, with significant contributions from new projects in the power industry and industrial services [5][14] - The company noted increasing demand for energy infrastructure due to the electrification of various sectors and aging natural gas infrastructure [11][12] Company Strategy and Development Direction - The company is focused on capitalizing on the growing demand for energy infrastructure, particularly in natural gas and renewable energy projects [25][26] - A disciplined capital allocation strategy is in place, emphasizing investments in workforce, dividends, and potential M&A opportunities [24] - The company aims to maintain its leadership role in constructing power generation facilities to support the electric economy and ensure grid reliability [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market opportunities driven by unprecedented power consumption and the need for reliable energy sources [25][29] - The company anticipates continued growth in backlog and project opportunities, with a focus on executing projects on time and within budget [27][28] Other Important Information - The company reported $572 million in cash and investments, with net liquidity of $344 million and no debt as of July 31, 2025 [7][23] - A quarterly dividend of $0.375 was paid, reflecting a 25% increase from previous levels [24] Q&A Session Summary Question: What is left at Trumbull to complete and what's a reasonable timeline? - Management confirmed that the project is on track for completion in the first half of next year following successful milestones [33] Question: Thoughts on gross margin sustainability? - Management indicated that while the current gross margin is strong, it is difficult to predict future margins due to the variable nature of the business [34] Question: Changes in the pipeline and demand environment? - Management noted that the demand environment remains strong, with no pullback from partners, and expects to add more projects to the backlog [41][49] Question: Trends in the industrial business segment? - Management highlighted a record backlog in the industrial segment and expects improved performance in the second half of the year [44] Question: Capacity and project types? - Management stated that they have the capacity to handle 10 to 12 jobs in the power business and are focused on organic growth [52][53]

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 2026 was $238 million, reflecting a 5% increase year-over-year and a 23% sequential increase from Q1 2026 [4][17] - Gross margins improved to 18.6% compared to 13.7% in Q2 2025, with record net income of $35.3 million or $2.50 per diluted share [5][19] - EBITDA for Q2 2026 was $36.3 million, representing an EBITDA margin of 15.2%, up from 10.9% in the same quarter last year [5][19] Business Line Data and Key Metrics Changes - Power industry services segment revenues increased 13% to $197 million, accounting for 83% of total revenues [7] - Industrial construction services segment revenues decreased to $36 million from $50 million year-over-year but saw a 23% sequential growth from Q1 2026 [7][8] - Telecommunications infrastructure services contributed 2% of total revenues, with a record backlog achieved [9] Market Data and Key Metrics Changes - The backlog reached a record $2 billion, with significant contributions from new projects in the power industry and industrial services [5][12] - The company noted increasing demand for energy infrastructure due to the electrification of various sectors and aging natural gas infrastructure [10][11] Company Strategy and Development Direction - The company is focused on capitalizing on the growing demand for power generation facilities, particularly natural gas and renewable energy projects [10][24] - A disciplined capital allocation strategy is in place, emphasizing investments in workforce, dividends, and potential M&A opportunities [22][23] - The company aims to maintain its leadership role in energy infrastructure construction while driving organic growth [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market demand for energy infrastructure and the company's ability to execute projects on time and within budget [26][27] - The company anticipates continued growth in backlog and project opportunities, particularly in the power sector [24][26] Other Important Information - The company has $572 million in cash and investments, with net liquidity of $344 million and no debt as of July 31, 2025 [6][22] - A quarterly dividend of $0.375 was paid, reflecting a 50% increase in the annual dividend run rate over two years [23] Q&A Session Summary Question: What is left to complete at the Trumbull project and the timeline? - Management indicated that the project is on track for completion in the first half of next year following recent milestones [32] Question: Are there any one-time gains affecting the gross margin? - Management noted that while execution has been strong, they do not provide specific guidance on gross margins due to the nature of the business [33] Question: What types of projects are being considered for the backlog? - Management confirmed a variety of project sizes are being pursued, with expectations to exceed $2 billion in backlog by the end of the fiscal year [36] Question: Is there an acceleration in the pipeline due to demand? - Management stated that while there is a strong demand environment, the pipeline remains consistent with previous trends [41] Question: What is the outlook for the industrial business segment? - Management reported a record backlog of $189 million and expects improved performance in the second half of the year [43]

Financial Highlights - Q2 2026 consolidated revenues increased by 5% year-over-year and 23% sequentially compared to Q1 2026, with a consolidated gross margin of 19%[5] - Record Q2 earnings per diluted share of $2.50, up $1.19 year-over-year[5] - Q2 EBITDA reached $36 million, representing 15.2% of revenue[5] - The company paid a quarterly dividend of $0.375 per common share[5] Project Backlog and Business Segments - Record project backlog of $2.0 billion as of July 31, 2025[5] - Power Industry Services accounted for 83% of Q2 revenues, generating $197 million in revenue and $35 million in pre-tax income[10] - Industrial Construction Services contributed 15% of Q2 revenues, with $36 million in revenue and $3 million in pre-tax income[10] - Telecommunications Infrastructure Services represented 2% of Q2 revenues, amounting to $5 million in revenue and $0.3 million in pre-tax income[10] Market Drivers and Growth - AI power demand is projected to grow at an annual average of 70% through 2027[14] - Electric vehicle adoption is projected to grow 20-fold by 2040, increasing the average total annual EV load in the U S to 468000 GWh from 24000 GWh in 2023[16] - Companies have committed $525 billion towards the construction of factories making semiconductors, microchips, batteries, and solar panels since 2021[18]

[Financial Statements](index=2&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Earnings](index=2&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) For the three and six months ended July 31, 2025, the company achieved significant growth in both revenue and net income, with three-month net income increasing by **93.8%** and six-month net income by **121.7%**, alongside a substantial rise in diluted earnings per share Condensed Consolidated Statements of Earnings (Three Months Ended July 31, in thousands USD) | Metric (in thousands USD) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Change (%) | | :------------------------ | :------------------------------- | :------------------------------- | :--------- | | Revenue | 237,743 | 227,015 | 4.7 | | Gross Profit | 44,267 | 31,105 | 42.3 | | Operating Income | 30,055 | 18,677 | 60.9 | | Net Income | 35,275 | 18,198 | 93.8 | | Diluted EPS | 2.50 | 1.31 | 90.8 | Condensed Consolidated Statements of Earnings (Six Months Ended July 31, in thousands USD) | Metric (in thousands USD) | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | Change (%) | | :------------------------ | :----------------------------- | :----------------------------- | :--------- | | Revenue | 431,403 | 384,697 | 12.1 | | Gross Profit | 81,130 | 49,049 | 65.4 | | Operating Income | 54,397 | 25,196 | 115.9 | | Net Income | 57,825 | 26,080 | 121.7 | | Diluted EPS | 4.09 | 1.90 | 115.3 | [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of July 31, 2025, the company's total assets and stockholders' equity increased, with higher cash and cash equivalents and investment balances, reflecting a robust financial position Condensed Consolidated Balance Sheets (As of July 31, in thousands USD) | Metric (in thousands USD) | July 31, 2025 | January 31, 2025 | Change (%) | | :------------------------ | :------------ | :--------------- | :--------- | | Cash and Cash Equivalents | 177,850 | 145,263 | 22.4 | | Investments | 394,340 | 379,874 | 3.8 | | Total Current Assets | 828,784 | 781,300 | 6.1 | | Total Assets | 882,704 | 836,227 | 5.6 | | Total Current Liabilities | 484,322 | 479,857 | 0.9 | | Total Liabilities | 489,528 | 484,370 | 1.1 | | Total Stockholders' Equity | 393,176 | 351,857 | 11.7 | [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) For the six months ended July 31, 2025, stockholders' equity increased from **$351,857 thousand USD** on February 1, 2025, to **$393,176 thousand USD**, primarily driven by net income, partially offset by cash dividends and stock repurchases Condensed Consolidated Statements of Stockholders' Equity (in thousands USD) | Stockholders' Equity Changes | Balance as of February 1, 2025 | Balance as of July 31, 2025 | | :--------------------------- | :----------------------------- | :-------------------------- | | Net Income | - | 57,825 | | Foreign Currency Translation Gain/Loss | - | 3,370 | | Unrealized Gain/Loss on Available-for-Sale Securities | - | 1,598 | | Stock-Based Compensation Expense | - | 3,453 | | Stock Option Exercises and Restricted Stock Settlements | - | (7,632) | | Common Stock Repurchases | - | (7,048) | | Cash Dividends | - | (10,247) | | **Total Stockholders' Equity** | **351,857** | **393,176** | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended July 31, 2025, operating cash flow was **$69.9 million USD**, with net cash outflows of **$14.3 million USD** from investing activities and **$24.9 million USD** from financing activities, increasing cash and cash equivalents to **$177.9 million USD** at period-end Condensed Consolidated Statements of Cash Flows (in thousands USD) | Cash Flow Activities | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :----------------------------- | :----------------------------- | :----------------------------- | | Net Cash Provided by Operating Activities | 69,895 | 91,181 | | Net Cash Used in Investing Activities | (14,253) | (44,562) | | Net Cash Used in Financing Activities | (24,927) | (10,680) | | Effect of Exchange Rate Changes | 1,872 | (286) | | Net Increase in Cash and Cash Equivalents | 32,587 | 35,653 | | Cash and Cash Equivalents at End of Period | 177,850 | 232,685 | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [NOTE 1 – DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION](index=7&type=section&id=NOTE%201%20%E2%80%93%20DESCRIPTION%20OF%20THE%20BUSINESS%20AND%20BASIS%20OF%20PRESENTATION) The company operates through three reporting segments: Power Industry Services, Industrial Construction Services, and Telecommunications Infrastructure Services, primarily in the US, Ireland, and the UK, with these unaudited financial statements prepared under US GAAP and SEC rules, to be read in conjunction with the annual 10-K report - The company operates through three reporting segments: Power Industry Services, Industrial Construction Services, and Telecommunications Infrastructure Services[12](index=12&type=chunk) - The Power Industry Services segment provides engineering, procurement, construction, commissioning, maintenance, project development, and technical consulting services for client projects in the US, Ireland, and the UK[12](index=12&type=chunk) - The Industrial Construction Services segment offers new plant construction, maintenance, outage, and emergency mobilization field services, primarily in the southeastern US, potentially including the fabrication, delivery, and erection of structural steel components[12](index=12&type=chunk) - The Telecommunications Infrastructure Services segment provides project management, construction, installation, maintenance, repair, and response services, primarily to commercial, local, and federal government clients in the Mid-Atlantic US[12](index=12&type=chunk) - These condensed consolidated financial statements are unaudited, prepared in accordance with SEC rules and regulations, and should be read in conjunction with the company's annual report on Form 10-K for the fiscal year ended January 31, 2025[14](index=14&type=chunk) - FASB issued ASU 2023-09 (Improvements to Income Tax Disclosures) and ASU 2024-03 (Disaggregation of Expense Disclosures on the Income Statement), and the company is evaluating their impact on financial position, results of operations, cash flows, or disclosures[16](index=16&type=chunk)[17](index=17&type=chunk) [NOTE 2 – REVENUES FROM CONTRACTS WITH CUSTOMERS](index=8&type=section&id=NOTE%202%20%E2%80%93%20REVENUES%20FROM%20CONTRACTS%20WITH%20CUSTOMERS) Company revenue primarily originates from US projects, with US revenue increasing by **23.7%** for the six months ended July 31, 2025, and a significant increase in revenue recognized from contract liabilities, with **$2.0 billion USD** in remaining performance obligations, mostly expected to be recognized in future fiscal years Revenue by Geographic Region (in thousands USD) | Region | Three Months Ended July 31, 2025 (in thousands USD) | Three Months Ended July 31, 2024 (in thousands USD) | Six Months Ended July 31, 2025 (in thousands USD) | Six Months Ended July 31, 2024 (in thousands USD) | | :--------------------- | :-------------------------------------------------- | :-------------------------------------------------- | :------------------------------------------------ | :------------------------------------------------ | | United States | 214,195 | 195,249 | 395,301 | 319,580 | | Republic of Ireland | 17,244 | 28,167 | 27,132 | 57,058 | | United Kingdom | 6,304 | 3,599 | 8,970 | 8,059 | | **Consolidated Total Revenue** | **237,743** | **227,015** | **431,403** | **384,697** | Revenue Recognized from Contract Liabilities (in thousands USD) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :----------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue Recognized from Contract Liabilities | 143,116 | 90,874 | 244,884 | 131,229 | - As of July 31, 2025, the company's total remaining performance obligations (RUPO) amounted to **$2.0 billion USD**, with approximately **26%** expected to be recognized as revenue during the remainder of fiscal year 2026, and the majority thereafter in fiscal years 2027, 2028, and 2029[22](index=22&type=chunk) - As of July 31, 2025, contract retentions (billed amounts not yet paid by customers) totaled **$26.6 million USD**, an increase from **$15.8 million USD** as of January 31, 2025[20](index=20&type=chunk) - As of July 31, 2025, contract modifications included in the transaction price awaiting customer approval (primarily related to an overseas project) totaled **$10.2 million USD**, an increase from **$8.0 million USD** as of January 31, 2025[21](index=21&type=chunk) [NOTE 3 – CASH, CASH EQUIVALENTS AND INVESTMENTS](index=9&type=section&id=NOTE%203%20%E2%80%93%20CASH%2C%20CASH%20EQUIVALENTS%20AND%20INVESTMENTS) The company's cash and cash equivalents are primarily invested in money market funds, with an investment portfolio including short-term investments (mainly certificates of deposit) and available-for-sale securities (primarily US Treasury notes), totaling **$394.3 million USD** as of July 31, 2025, with a weighted average annualized yield of **4.0%** Investment Portfolio (in thousands USD) | Investment Type | July 31, 2025 | January 31, 2025 | | :------------------- | :------------ | :--------------- | | Short-Term Investments | 97,676 | 153,129 | | Available-for-Sale Securities | 296,664 | 226,745 | | **Total Investments** | **394,340** | **379,874** | Investment and Cash Income (in thousands USD) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Investment and Cash Income | 5,500 | 5,300 | 11,000 | 10,100 | - As of July 31, 2025, the company's unrealized losses do not represent credit losses, as the company does not intend to sell these investments before recovering their amortized cost[28](index=28&type=chunk) - As of July 31, 2025, and January 31, 2025, the weighted average annualized yield on the company's outstanding investment funds and interest-bearing cash accounts was **4.0%** and **4.1%**, respectively[30](index=30&type=chunk) - As of July 31, 2025, approximately **8%** of cash, cash equivalents, and investments were held by foreign subsidiaries in Ireland and the UK, and management believes concentration risk does not pose a significant threat[31](index=31&type=chunk) [NOTE 4 – FAIR VALUE MEASUREMENTS](index=12&type=section&id=NOTE%204%20%E2%80%93%20FAIR%20VALUE%20MEASUREMENTS) The company's fair value measurements for financial instruments primarily utilize Level 1 and Level 2 inputs, with money market funds (Level 1) at **$89.8 million USD** and available-for-sale securities (US Treasury notes, Level 2) at **$296.7 million USD** as of July 31, 2025 Fair Value Measurements (in thousands USD) | Financial Instrument | July 31, 2025 Level 1 | July 31, 2025 Level 2 | January 31, 2025 Level 1 | January 31, 2025 Level 2 | | :------------------------------- | :-------------------- | :-------------------- | :----------------------- | :----------------------- | | Cash Equivalents: Money Market Funds | 89,807 | — | 93,067 | — | | Available-for-Sale Securities: US Treasury Notes | — | 296,664 | — | 226,745 | | **Total** | **89,807** | **296,664** | **93,067** | **226,745** | [NOTE 5 – ACCOUNTS RECEIVABLE](index=12&type=section&id=NOTE%205%20%E2%80%93%20ACCOUNTS%20RECEIVABLE) As of July 31, 2025, accounts receivable included **$24.7 million USD** in billable amounts related to an overseas project, including anticipated letter of credit drawdowns to be returned, with credit loss allowance being immaterial for the current period compared to **$0.5 million USD** in the prior year - As of July 31, 2025, accounts receivable included **$24.7 million USD** in billable amounts related to an overseas project, including anticipated letter of credit drawdowns to be returned[33](index=33&type=chunk) - As of July 31, 2025, the allowance for credit losses was **$1.8 million USD**, compared to **$1.9 million USD** as of January 31, 2025[34](index=34&type=chunk) - For the three and six months ended July 31, 2025, the amount of credit loss allowance was immaterial; for the same period in 2024, it was **$0.5 million USD**[34](index=34&type=chunk) [NOTE 6 – INTANGIBLE ASSETS](index=12&type=section&id=NOTE%206%20%E2%80%93%20INTANGIBLE%20ASSETS) The company's intangible assets, primarily trade names and customer relationships, totaled **$1.63 million USD** net as of July 31, 2025, with goodwill balances of **$18.5 million USD** for Power Industry Services and **$9.5 million USD** for Industrial Construction Services remaining unchanged since January 31, 2025 Intangible Assets (in thousands USD) | Intangible Asset Type | Estimated Useful Life | Net Amount as of July 31, 2025 (in thousands USD) | Net Amount as of January 31, 2025 (in thousands USD) | | :-------------------- | :-------------------- | :------------------------------------------------ | :------------------------------------------------- | | Trade Names | 15 years | 1,600 | 1,750 | | Customer Relationships | 10 years | 30 | 76 | | **Total** | | **1,630** | **1,826** | - As of July 31, 2025, and January 31, 2025, goodwill balances remained unchanged at **$18.5 million USD** for the Power Industry Services segment and **$9.5 million USD** for the Industrial Construction Services segment[35](index=35&type=chunk) - For the three and six months ended July 31, 2025, intangible asset amortization expense was **$0.1 million USD** and **$0.2 million USD**, respectively[36](index=36&type=chunk) Estimated Future Amortization Expense (in thousands USD) | Fiscal Year Ending January 31 | Amortization Expense (in thousands USD) | | :---------------------------- | :-------------------------------------- | | 2026 (remaining) | 180 | | 2027 | 300 | | 2028 | 300 | | 2029 | 300 | | 2030 | 300 | | Thereafter | 250 | | **Total** | **1,630** | [NOTE 7 – FINANCING ARRANGEMENTS](index=13&type=section&id=NOTE%207%20%E2%80%93%20FINANCING%20ARRANGEMENTS) The company has a revised credit agreement with banks providing a **$35.0 million USD** base loan commitment and an additional **$30.0 million USD** commitment at SOFR plus **1.85%**, with no outstanding borrowings but **$0.3 million USD** in outstanding letters of credit as of July 31, 2025, having pledged most assets as collateral and complied with all financial covenants - The company's credit agreement with banks is effective until May 31, 2027, with a base loan commitment of **$35.0 million USD** and an additional **$30.0 million USD** commitment[39](index=39&type=chunk) - The revolving loan interest rate under the credit agreement is SOFR plus **1.85%**[39](index=39&type=chunk) - As of July 31, 2025, the company had no outstanding borrowings under the credit agreement but had outstanding letters of credit totaling **$0.3 million USD**[40](index=40&type=chunk) - The company has pledged most of its assets to secure its financing arrangements and has complied with all covenants and other requirements of the credit agreement as of July 31, 2025[41](index=41&type=chunk) [NOTE 8 – COMMITMENTS](index=13&type=section&id=NOTE%208%20%E2%80%93%20COMMITMENTS) As of July 31, 2025, the company's outstanding performance bond obligations are estimated at approximately **$60 million USD** across all subsidiaries, with an additional **$61.2 million USD** in outstanding bonds covering other risks, including warranty obligations and contract payment retentions for completed activities - As of July 31, 2025, the company's outstanding performance bond obligations are estimated at approximately **$60 million USD**[42](index=42&type=chunk) - As of July 31, 2025, outstanding bonds covering other risks (including warranty obligations and contract payment retentions) totaled **$61.2 million USD**[42](index=42&type=chunk) [NOTE 9 – LEGAL CONTINGENCIES](index=13&type=section&id=NOTE%209%20%E2%80%93%20LEGAL%20CONTINGENCIES) The company's UK subsidiary is currently involved in a lawsuit against EP NI Energy Limited and EP UK Investment Limited for breach of contract and unpaid amounts, with the project owner improperly drawing **$9.7 million USD** from a letter of credit, which the company has recorded as accounts receivable, and management believes existing claims will not materially adversely affect the consolidated financial statements - The company's UK subsidiary has sued EP NI Energy Limited and EP UK Investment Limited, alleging breach of contract and unpaid amounts, which negatively impacted project progress and costs[44](index=44&type=chunk) - The project owner improperly drew **$9.7 million USD** from an irrevocable letter of credit, which the company has recorded as accounts receivable as of July 31, 2025[45](index=45&type=chunk) - The company's UK subsidiary holds substantial billable accounts receivable, unresolved contract modifications, and delay claims[45](index=45&type=chunk) - Management believes, based on available information, that no current claims or lawsuits will have a material adverse effect on the consolidated financial statements[43](index=43&type=chunk) [NOTE 10 – STOCK-BASED COMPENSATION](index=15&type=section&id=NOTE%2010%20%E2%80%93%20STOCK-BASED%20COMPENSATION) For the six months ended July 31, 2025, stock-based compensation expense was **$3.5 million USD**, a significant increase from the prior year, with the company granting various restricted stock units and non-qualified stock options, and settling some stock option exercises and share-based payment awards using treasury stock Stock-Based Compensation Expense (in thousands USD) | Stock-Based Compensation Expense | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Stock-Based Compensation Expense | 2,300 | 1,000 | 3,500 | 2,200 | - As of July 31, 2025, unrecognized compensation cost related to unexercised stock awards was **$10.2 million USD**, expected to be recognized over the next three years[46](index=46&type=chunk) - For the six months ended July 31, 2025, the company granted a total of **56,450** target restricted stock units (including performance and renewable energy performance-linked) and **32,350** time-vested restricted stock units[47](index=47&type=chunk) - For the six months ended July 31, 2025, the company granted **4,000** non-qualified stock options with a weighted average exercise price of **$148.72 per share**; **230,433** non-qualified stock options were exercised with a weighted average exercise price of **$47.67 per share**[47](index=47&type=chunk) - For the six months ended July 31, 2025, the company used **233,478** shares of treasury stock to settle stock option exercises and other share-based payment awards[48](index=48&type=chunk) [NOTE 11 – INCOME TAXES](index=16&type=section&id=NOTE%2011%20%E2%80%93%20INCOME%20TAXES) For the six months ended July 31, 2025, the company's income tax expense was **$7.6 million USD**, with an effective tax rate of **11.6%**, primarily influenced by tax benefits from stock option exercises, while the company is evaluating the impact of the newly enacted OBBBA and is contesting IRS denials of NOL carryback refund requests and R&D tax credits Income Tax Expense (in thousands USD) | Income Tax Item | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | | US Statutory Federal Income Tax Expense | 13,739 | 7,475 | | State Income Tax (net of federal benefit) | 1,253 | 1,186 | | Unrecognized Tax Benefits | — | 961 | | Executive Compensation Limitations | 792 | 404 | | Stock-Based Compensation Windfall Benefit | (7,994) | (531) | | Other Permanent Differences and Adjustments | (193) | 19 | | **Income Tax Expense** | **7,597** | **9,514** | - For the six months ended July 31, 2025, the effective income tax rate was **11.6%**, primarily due to favorable tax benefits from stock option exercises[122](index=122&type=chunk) - The newly enacted One Big Beautiful Bill Act (OBBBA) allows for more favorable deductions for certain business expenses, including the restoration of immediate expensing for domestic R&D expenditures and **100%** bonus depreciation, with the company evaluating its impact on future periods, which is not expected to be material[49](index=49&type=chunk)[86](index=86&type=chunk) - The company has filed an NOL carryback refund claim with the IRS for approximately **$12.7 million USD**, which is currently under IRS review[50](index=50&type=chunk) - The IRS has denied **$5.8 million USD** in R&D tax credits claimed by the company for fiscal years 2021 and 2022, and the company is formally contesting this and has filed a claim with its insurance carrier[51](index=51&type=chunk)[52](index=52&type=chunk) - As of July 31, 2025, other current assets included approximately **$33.6 million USD** in income tax refunds receivable, related accrued interest, and prepaid income taxes[53](index=53&type=chunk) - The company holds investments in solar tax credit (STC) limited liability companies, with an outstanding cash investment commitment of **$11.5 million USD** as of July 31, 2025, which was paid in August 2025; for the six months ended July 31, 2025, the company recognized **$1.5 million USD** in income tax credits and other income tax benefits[55](index=55&type=chunk)[56](index=56&type=chunk) [NOTE 12 – EARNINGS PER SHARE](index=19&type=section&id=NOTE%2012%20%E2%80%93%20EARNINGS%20PER%20SHARE) For the three and six months ended July 31, 2025, both basic and diluted earnings per share significantly increased, reflecting strong net income performance and the impact of dilutive securities Earnings Per Share (in thousands of shares, except per share data) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income | 35,275 | 18,198 | 57,825 | 26,080 | | Basic Weighted Average Shares Outstanding | 13,731 | 13,403 | 13,680 | 13,331 | | Diluted Weighted Average Shares Outstanding | 14,131 | 13,880 | 14,122 | 13,727 | | Basic Earnings Per Share | 2.57 | 1.36 | 4.23 | 1.96 | | Diluted Earnings Per Share | 2.50 | 1.31 | 4.09 | 1.90 | [NOTE 13 – STOCKHOLDERS' EQUITY](index=19&type=section&id=NOTE%2013%20%E2%80%93%20STOCKHOLDERS%27%20EQUITY) The Board of Directors increased the total stock repurchase authorization by **$25 million USD** to **$150 million USD** on April 10, 2025, with the company repurchasing **56,117** shares of common stock for approximately **$7.0 million USD** and paying **$0.375 per share** in cash dividends for the six months ended July 31, 2025 - The Board of Directors increased the total stock repurchase authorization by **$25 million USD** to **$150 million USD** on April 10, 2025[59](index=59&type=chunk) - For the six months ended July 31, 2025, the company repurchased **56,117** shares of common stock for approximately **$7.0 million USD**, at an average price of **$125.60 per share**[59](index=59&type=chunk) Cash Dividends Declared and Paid (in USD) | Record Date | Payment Date | Amount Per Share (USD) | | :------------ | :------------ | :--------------------- | | July 23, 2025 | July 31, 2025 | 0.375 | | April 22, 2025 | April 30, 2025 | 0.375 | | January 23, 2025 | January 31, 2025 | 0.375 | | October 23, 2024 | October 31, 2024 | 0.375 | | July 23, 2024 | July 31, 2024 | 0.300 | | April 22, 2024 | April 30, 2024 | 0.300 | [NOTE 14 – CUSTOMER CONCENTRATIONS](index=19&type=section&id=NOTE%2014%20%E2%80%93%20CUSTOMER%20CONCENTRATIONS) The majority of the company's consolidated revenue is derived from the Power Industry Services segment, with high revenue and accounts receivable concentration among a few key customers; for the three months ended July 31, 2025, the top three Power Industry Services customers contributed **30%**, **17%**, and **13%** of consolidated revenue Revenue by Reporting Segment (Percentage of Consolidated Revenue) | Reporting Segment | Three Months Ended July 31, 2025 (%) | Three Months Ended July 31, 2024 (%) | Six Months Ended July 31, 2025 (%) | Six Months Ended July 31, 2024 (%) | | :------------------------------- | :----------------------------------- | :----------------------------------- | :--------------------------------- | :--------------------------------- | | Power Industry Services | 82.8 | 76.5 | 82.8 | 73.8 | | Industrial Construction Services | 15.2 | 21.9 | 15.1 | 24.3 | | Telecommunications Infrastructure Services | 2.0 | 1.6 | 2.1 | 1.9 | - For the three months ended July 31, 2025, the top three Power Industry Services customers accounted for **30%**, **17%**, and **13%** of consolidated revenue, respectively[60](index=60&type=chunk) - For the six months ended July 31, 2025, the top two Power Industry Services customers accounted for **27%** and **23%** of consolidated revenue, respectively[61](index=61&type=chunk) - As of July 31, 2025, the accounts receivable balances for the top three major customers accounted for **29%**, **23%**, and **14%** of the consolidated balance, respectively[62](index=62&type=chunk) - As of July 31, 2025, the contract asset balances for the top four major customers accounted for **33%**, **15%**, **11%**, and **10%** of the consolidated balance, respectively[63](index=63&type=chunk) [NOTE 15 – SEGMENT REPORTING](index=21&type=section&id=NOTE%2015%20%E2%80%93%20SEGMENT%20REPORTING) The company's operations are segmented into Power Industry Services, Industrial Construction Services, and Telecommunications Infrastructure Services, based on how the chief operating decision maker assesses performance and allocates resources, with detailed financial data for each segment showing Power Industry Services contributing the majority of revenue and profit for the three and six months ended July 31, 2025 - The company's Chief Executive Officer, as the chief operating decision maker, uses income before taxes to assess the performance of business segments and determine resource allocation[64](index=64&type=chunk) Segment Operating Results (Three Months Ended July 31, in thousands USD) | Metric | Power Industry Services | Industrial Construction Services | Telecommunications Infrastructure Services | Other | Total | | :---------------- | :---------------------- | :------------------------------- | :----------------------------------------- | :------ | :------ | | **2025年7月31日止三个月** | | | | | | | Revenue | 196,948 | 36,065 | 4,730 | — | 237,743 | | Gross Profit | 38,578 | 4,523 | 1,166 | — | 44,267 | | Operating Income | 30,834 | 2,685 | 253 | (3,717) | 30,055 | | Income Before Taxes | 35,256 | 2,686 | 264 | (2,570) | 35,636 | | **2024年7月31日止三个月** | | | | | | | Revenue | 173,760 | 49,642 | 3,613 | — | 227,015 | | Gross Profit | 23,527 | 6,442 | 1,136 | — | 31,105 | | Operating Income | 16,335 | 4,477 | 467 | (2,602) | 18,677 | | Income Before Taxes | 21,042 | 4,477 | 470 | (1,708) | 24,281 | Segment Operating Results (Six Months Ended July 31, in thousands USD) | Metric | Power Industry Services | Industrial Construction Services | Telecommunications Infrastructure Services | Other | Total | | :---------------- | :---------------------- | :------------------------------- | :----------------------------------------- | :------ | :------ | | **2025年7月31日止六个月** | | | | | | | Revenue | 357,304 | 65,249 | 8,850 | — | 431,403 | | Gross Profit | 71,548 | 7,674 | 1,908 | — | 81,130 | | Operating Income | 57,018 | 4,224 | 77 | (6,922) | 54,397 | | Income Before Taxes | 65,812 | 4,225 | 120 | (4,735) | 65,422 | | **2024年7月31日止六个月** | | | | | | | Revenue | 284,026 | 93,341 | 7,330 | — | 384,697 | | Gross Profit | 34,801 | 12,262 | 1,986 | — | 49,049 | | Operating Income | 21,481 | 8,424 | 707 | (5,416) | 25,196 | | Income Before Taxes | 30,249 | 8,425 | 710 | (3,790) | 35,594 | [NOTE 16 – SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION](index=24&type=section&id=NOTE%2016%20%E2%80%93%20SUPPLEMENTAL%20FINANCIAL%20STATEMENT%20INFORMATION) As of July 31, 2025, other current assets primarily included **$33.6 million USD** in income tax refunds receivable and prepaid income taxes, while accrued expenses mainly comprised **$29.8 million USD** in accrued project costs and **$20.9 million USD** in accrued compensation Other Current Assets (in thousands USD) | Other Current Assets | July 31, 2025 | January 31, 2025 | | :---------------------------------------- | :------------ | :--------------- | | Income Tax Refunds Receivable and Prepaid Income Taxes | 33,614 | 30,881 | | Notes Receivable | 4,608 | 5,023 | | Prepaid Expenses | 7,302 | 5,751 | | Raw Materials Inventory | 1,256 | 320 | | Other | 6,918 | 9,950 | | **Total** | **53,698** | **51,925** | Accrued Expenses (in thousands USD) | Accrued Expenses | July 31, 2025 | January 31, 2025 | | :------------------- | :------------ | :--------------- | | Accrued Project Costs | 29,798 | 31,620 | | Accrued Compensation | 20,854 | 29,772 | | Lease Liabilities | 2,378 | 2,710 | | Other | 18,423 | 19,217 | | **Total** | **71,453** | **83,319** | [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=24&type=section&id=MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) [Overview and Forward-Looking Statements](index=24&type=section&id=Overview%20and%20Forward-Looking%20Statements) This section discusses the company's financial condition and results of operations as of July 31, 2025, containing forward-looking statements based on current expectations and beliefs that involve significant risks and uncertainties, where actual results may differ materially from projections, and the company undertakes no obligation to publicly update or revise any forward-looking statements - This discussion should be read in conjunction with the unaudited condensed consolidated financial statements and notes in this quarterly report, as well as the consolidated financial statements and notes in the company's annual report on Form 10-K for the fiscal year ended January 31, 2025[72](index=72&type=chunk) - Forward-looking statements are based on the company's current expectations and beliefs regarding future developments and their potential effects, but involve significant risks and uncertainties, and actual results may differ materially from projections[75](index=75&type=chunk)[76](index=76&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statements[76](index=76&type=chunk) [Business Description](index=26&type=section&id=Business%20Description) The company is primarily an engineering and construction firm operating through three reporting segments: Power Industry Services, Industrial Construction Services, and Telecommunications Infrastructure Services, actively seeking opportunistic acquisitions and/or investments in companies with profitable growth potential and synergies - The company is primarily an engineering and construction company operating through three reporting segments: Power Industry Services, Industrial Construction Services, and Telecommunications Infrastructure Services[77](index=77&type=chunk) - The Power Industry Services segment provides a full range of engineering, procurement, construction, commissioning, maintenance, project development, and technical consulting services for power generation markets, with projects located in the US, Ireland, and the UK[78](index=78&type=chunk) - The Industrial Construction Services segment primarily provides field services for industrial plants in the southeastern US, including new plant construction, maintenance, outages, and emergency mobilization[79](index=79&type=chunk) - The Telecommunications Infrastructure Services segment provides telecommunications project management, construction, installation, maintenance, repair, and response services to commercial, local, and federal government clients in the Mid-Atlantic US[80](index=80&type=chunk) - The company may pursue additional opportunistic acquisitions and/or investments by identifying companies with profitable growth potential and synergies[81](index=81&type=chunk) [Market Outlook](index=26&type=section&id=Market%20Outlook) US electricity demand has reached a two-decade high, driven by AI data centers, electric vehicles, and reshoring manufacturing, while aging traditional generation and expanding renewables necessitate natural gas power plants as a critical component, with trade policy changes introducing cost and supply chain uncertainties, and the newly enacted OBBBA expected to have no material impact on the company - US electricity demand has reached a two-decade high, primarily driven by the expansion of data centers supporting artificial intelligence technology, the proliferation of electric vehicles, and the reshoring of manufacturing[82](index=82&type=chunk) - Aging traditional power generation facilities are retiring faster than new ones are being built, increasing the risk of electricity shortages[82](index=82&type=chunk) - Natural gas power plants are expected to remain a critical component of future capacity additions due to their cost-effectiveness, reliability, and ability to support intermittent energy sources[82](index=82&type=chunk) - Utility-scale solar, wind, and battery storage projects continue to expand, benefiting from declining capital costs, improved storage systems, and tax incentives[83](index=83&type=chunk) - Changes in US trade policy, including the implementation of new tariffs, introduce uncertainty regarding the cost and supply chain of certain construction materials and equipment, potentially leading to increased project costs and delays[84](index=84&type=chunk)[85](index=85&type=chunk) - The One Big Beautiful Bill Act (OBBBA), enacted on July 4, 2025, modifies US federal income tax law to allow for more favorable deductions for certain business expenses, and the company is evaluating its impact on future periods, which is not expected to be material[86](index=86&type=chunk) [Project Backlog](index=28&type=section&id=Project%20Backlog) As of July 31, 2025, the company's consolidated project backlog reached **$2.0 billion USD**, a significant increase from **$1.4 billion USD** as of January 31, 2025, primarily concentrated in the Power Industry Services segment and including several large natural gas, biofuel, and solar power plant projects, as well as industrial construction service projects Project Backlog (in billions USD) | Project Backlog | July 31, 2025 | January 31, 2025 | Change (%) | | :----------------------- | :------------ | :--------------- | :--------- | | Consolidated Project Backlog | 2.0 | 1.4 | 42.9 | - The project backlog primarily includes projects in the Power Industry Services segment, such as a **170 MW** combined heat and power project in Ireland, a **1.2 GW** combined cycle natural gas power plant in Texas, a **300 MW** biofuel power plant in Ireland, a **700 MW** combined cycle natural gas power plant in the US, an LNG facility in Louisiana, a **405 MW** solar project in Illinois, Midwest solar and battery projects, and a **950 MW** combined cycle natural gas power plant in Ohio[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) - As of July 31, 2025, the Industrial Construction Services segment's project backlog was approximately **$189.0 million USD**, a substantial increase from **$53.2 million USD** as of January 31, 2025, with new contracts involving automotive plants, data centers, aluminum rolling and recycling facilities, and water treatment plants[98](index=98&type=chunk) [Comparison of Results of Operations (Three Months Ended July 31, 2025 and 2024)](index=30&type=section&id=Comparison%20of%20Results%20of%20Operations%20%28Three%20Months%20Ended%20July%2031%2C%202025%20and%202024%29) For the three months ended July 31, 2025, consolidated revenue increased by **4.7%** and net income by **93.8%**, with Power Industry Services revenue growing **13.3%** while Industrial Construction Services revenue declined **27.3%**, and gross margin improved from **13.7%** to **18.6%** due to changes in project mix, alongside a significant decrease in income tax expense to an effective tax rate of **1.0%** Comparison of Results of Operations (Three Months Ended July 31, in thousands USD) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Change ($) | Change (%) | | :--------------------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | | Revenue | 237,743 | 227,015 | 10,728 | 4.7 | | Selling, General and Administrative Expenses | 14,212 | 12,428 | 1,784 | 14.4 | | Operating Income | 30,055 | 18,677 | 11,378 | 60.9 | | Other Income, Net | 5,581 | 5,604 | (23) | (0.4) | | Income Before Taxes | 35,636 | 24,281 | 11,355 | 46.8 | | Income Tax Expense | 361 | 6,083 | (5,722) | (94.1) | | Net Income | 35,275 | 18,198 | 17,077 | 93.8 | | Diluted Earnings Per Share | 2.50 | 1.31 | 1.19 | 90.4 | - Power Industry Services revenue increased by **13.3%** to **$196.9 million USD**, primarily driven by increased construction activity on a **405 MW** Midwest solar project and a **700 MW** combined cycle project[101](index=101&type=chunk) - Industrial Construction Services revenue decreased by **27.3%** to **$36.1 million USD**, mainly due to reduced field service construction activity and vessel fabrication work[103](index=103&type=chunk) - Telecommunications Infrastructure Services revenue increased to **$4.7 million USD**[104](index=104&type=chunk) - Consolidated gross margin improved from **13.7%** in the prior year period to **18.6%** in the current period, primarily due to changes in project mix and contract types[106](index=106&type=chunk) - Income tax expense for the current period was **$0.4 million USD**, with an effective tax rate of **1.0%**, primarily due to favorable tax benefits from stock option exercises[109](index=109&type=chunk) [Comparison of Results of Operations (Six Months Ended July 31, 2025 and 2024)](index=33&type=section&id=Comparison%20of%20Results%20of%20Operations%20%28Six%20Months%20Ended%20July%2031%2C%202025%20and%202024%29) For the six months ended July 31, 2025, consolidated revenue increased by **12.1%** and net income by **121.7%**, with Power Industry Services revenue growing **25.8%** while Industrial Construction Services revenue declined **30.1%**, and consolidated gross margin significantly improved from **12.8%** to **18.8%** due to project mix changes, alongside a decrease in income tax expense to an effective tax rate of **11.6%** Comparison of Results of Operations (Six Months Ended July 31, in thousands USD) | Metric | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | Change ($) | Change (%) | | :--------------------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Revenue | 431,403 | 384,697 | 46,706 | 12.1 | | Selling, General and Administrative Expenses | 26,733 | 23,853 | 2,880 | 12.1 | | Operating Income | 54,397 | 25,196 | 29,201 | 115.9 | | Other Income, Net | 11,025 | 10,398 | 627 | 6.0 | | Income Before Taxes | 65,422 | 35,594 | 29,828 | 83.8 | | Income Tax Expense | 7,597 | 9,514 | (1,917) | (20.1) | | Net Income | 57,825 | 26,080 | 31,745 | 121.7 | | Diluted Earnings Per Share | 4.09 | 1.90 | 2.19 | 115.5 | - Power Industry Services revenue increased by **25.8%** to **$357.3 million USD**, primarily driven by increased construction activity on a **405 MW** Midwest solar project and a **700 MW** combined cycle project[113](index=113&type=chunk) - Industrial Construction Services revenue decreased by **30.1%** to **$65.2 million USD**, mainly due to a significant reduction in field service and vessel fabrication work[115](index=115&type=chunk) - Telecommunications Infrastructure Services revenue increased by **20.7%** to **$8.9 million USD**[116](index=116&type=chunk) - Consolidated gross margin improved from **12.8%** in the prior year period to **18.8%** in the current period, primarily due to changes in project mix and contract types, partially offset by unfavorable profit adjustments on an overseas project last year[119](index=119&type=chunk) - Income tax expense for the current period was **$7.6 million USD**, with an effective tax rate of **11.6%**, primarily due to favorable tax benefits from stock option exercises[122](index=122&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) As of July 31, 2025, cash and cash equivalents increased to **$177.9 million USD**, with **$69.9 million USD** provided by operating activities, net cash outflows of **$14.3 million USD** from investing activities, and **$24.9 million USD** from financing activities, resulting in a **$43.0 million USD** increase in net liquidity to **$344.5 million USD**, which the company believes is sufficient to meet business needs and maintain adequate liquidity for bonding capacity and project guarantees - As of July 31, 2025, the cash and cash equivalents balance was **$177.9 million USD**, an increase of **$32.6 million USD** from January 31, 2025[124](index=124&type=chunk) - For the six months ended July 31, 2025, net cash provided by operating activities was **$69.9 million USD**[125](index=125&type=chunk) - Investing activities primarily generated cash from net maturities of certificates of deposit totaling **$55.0 million USD**, mainly used for investments in available-for-sale securities (US Treasury notes) of **$67.2 million USD** and purchases of property, plant, and equipment of **$2.1 million USD**[126](index=126&type=chunk) - Financing activities used **$24.9 million USD** in cash, including **$7.0 million USD** for common stock repurchases and **$10.3 million USD** for cash dividend payments[127](index=127&type=chunk) - As of July 31, 2025, the company's net liquidity increased by **$43.0 million USD** to **$344.5 million USD**, primarily driven by net income, partially offset by cash dividend payments, common stock repurchases, and tax withholdings for share-based payment settlements[131](index=131&type=chunk) - The company believes that existing cash, cash equivalents, maturities of short-term investments, and future operating cash flows are sufficient to meet general business needs for the foreseeable future and maintain adequate working capital to ensure bonding capacity[132](index=132&type=chunk) [Performance Bonds and Guarantees](index=37&type=section&id=Performance%20Bonds%20and%20Guarantees) In the normal course of business, the company provides performance bonds, parent company guarantees, or letters of credit for significant projects, with outstanding performance bond obligations estimated at approximately **$60 million USD** across all subsidiaries and an additional **$61.2 million USD** in outstanding bonds covering other risks as of July 31, 2025 - The company may be required to obtain performance bonds, provide parent company guarantees, or issue letters of credit to provide performance assurance to customers[137](index=137&type=chunk) - As of July 31, 2025, the company's outstanding performance bond obligations are estimated at approximately **$60 million USD**[141](index=141&type=chunk) - As of July 31, 2025, outstanding bonds covering other risks (including warranty obligations and contract payment retentions) totaled **$61.2 million USD**[141](index=141&type=chunk) [Solar Energy Project Investments](index=39&type=section&id=Solar%20Energy%20Project%20Investments) The company invests in solar energy project limited liability companies eligible for energy tax credits, with an outstanding cash investment commitment of **$11.5 million USD** to a solar fund as of July 31, 2025, paid in August 2025, and may evaluate other alternative energy project investment opportunities in the future - The company invests in solar energy project limited liability companies eligible for energy tax credits[143](index=143&type=chunk) - As of July 31, 2025, the company had an outstanding cash investment commitment of **$11.5 million USD** to a solar fund, which was paid in August 2025[143](index=143&type=chunk) - The company may evaluate other alternative energy project investment opportunities in the future[143](index=143&type=chunk) [Development Financing](index=39&type=section&id=Development%20Financing) The company selectively participates in power plant project development and related financing activities to maintain proprietary access to EPC service contracts, secure exclusive EPC contract rights, and generate profits through interest income and project development success fees, having provided a **$5.0 million USD** loan to a special purpose entity in fiscal year 2025 to support the development phase of a natural gas power plant - The company participates in power plant project development and financing activities to maintain proprietary access to EPC service contracts, secure exclusive EPC contract rights, and generate profits through interest income and project development success fees[144](index=144&type=chunk) - In fiscal year 2025, the company provided a **$5.0 million USD** loan to a special purpose entity to support the development phase of a natural gas power plant, which remained outstanding as of July 31, 2025[145](index=145&type=chunk) [Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA")](index=39&type=section&id=Earnings%20before%20Interest%2C%20Taxes%2C%20Depreciation%20and%20Amortization%20%28%22EBITDA%22%29) EBITDA, a non-GAAP measure, is used to assess and compare the company's operating performance by excluding the effects of capital structure, depreciation and amortization accounting methods, and varying income tax jurisdictions, showing significant growth for both the three and six months ended July 31, 2025 - EBITDA is an effective metric for assessing and comparing the company's operating performance by excluding the effects of capital structure, depreciation and amortization accounting methods, and varying income tax jurisdictions[146](index=146&type=chunk) - EBITDA is not a performance measure calculated in accordance with US GAAP and should not be considered in isolation or as a substitute for results of operations in the consolidated financial statements[147](index=147&type=chunk) Reconciliation of Net Income to EBITDA (in thousands USD) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income | 35,275 | 18,198 | 57,825 | 26,080 | | Income Tax Expense | 361 | 6,083 | 7,597 | 9,514 | | Depreciation | 491 | 463 | 906 | 943 | | Amortization of Intangible Assets | 98 | 98 | 196 | 195 | | **EBITDA** | **36,225** | **24,842** | **66,524** | **36,732** | [Critical Accounting Policies and Recently Issued Accounting Pronouncements](index=40&type=section&id=Critical%20Accounting%20Policies%20and%20Recently%20Issued%20Accounting%20Pronouncements) There have been no significant changes to the company's critical accounting policies since the annual report disclosure, and recently issued accounting pronouncements are discussed in Note 1 to the condensed consolidated financial statements - There have been no significant changes to the company's critical accounting policies and estimates since the annual report filed on March 27, 2025[150](index=150&type=chunk) - Discussions of recently issued accounting pronouncements are included in Note 1 to the condensed consolidated financial statements[151](index=151&type=chunk) [Other Information](index=40&type=section&id=Other%20Information) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) For the six months ended July 31, 2025, there were no material changes to the market risks faced by the company, with a broader discussion of market risks available in the annual report - For the six months ended July 31, 2025, there were no material changes to the market risks faced by the company[152](index=152&type=chunk) - For a broader discussion of the company's market risks, refer to the 'Quantitative and Qualitative Disclosures About Market Risk' section in the company's annual report[152](index=152&type=chunk) [Controls and Procedures](index=40&type=section&id=Controls%20and%20Procedures) As of July 31, 2025, management assessed the disclosure controls and procedures as effective, providing reasonable assurance that information is timely recorded, processed, summarized, and reported, with no material changes to internal control over financial reporting during the quarter - As of July 31, 2025, the company's Chief Executive Officer and Chief Financial Officer assessed the disclosure controls and procedures as effective, providing reasonable assurance that information is timely recorded, processed, summarized, and reported[153](index=153&type=chunk) - There were no material changes to internal control over financial reporting during the fiscal quarter ended July 31, 2025[154](index=154&type=chunk) [Legal Proceedings](index=42&type=section&id=Legal%20Proceedings) As of July 31, 2025, the company is involved in ongoing legal proceedings as detailed in Note 9 to the condensed consolidated financial statements, and management believes that, based on available information, no current claims or lawsuits will have a material impact on the consolidated financial statements - As of July 31, 2025, the company is involved in ongoing legal proceedings, as detailed in Note 9 to the condensed consolidated financial statements[155](index=155&type=chunk) - Management believes that, based on available information, no current claims or lawsuits will have a material impact on the consolidated financial statements[155](index=155&type=chunk) [Risk Factors](index=42&type=section&id=Risk%20Factors) There were no material changes to the risk factors disclosed in the company's annual report - There were no material changes to the risk factors disclosed in the company's annual report[156](index=156&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Board of Directors has authorized management to repurchase common stock under a stock repurchase program, with the total authorized amount increased to **$150 million USD**, and for the three months ended July 31, 2025, the company repurchased **52,308** shares of common stock and accepted **95,977** shares for exercise price and/or tax withholding related to stock option exercises and share-based payment settlements - The Board of Directors has increased the total authorized amount for the stock repurchase program by **$25 million USD** to **$150 million USD**[157](index=157&type=chunk) Common Stock Repurchases (Three Months Ended July 31, 2025) | Period | Total Number of Shares Repurchased | Average Price Paid Per Share (USD) | Total Number of Shares Repurchased as Part of Publicly Announced Plans | Approximate Dollar Value of Shares That May Yet Be Repurchased Under the Plans or Programs (in thousands USD) | | :-------------- | :--------------------------------- | :--------------------------------- | :--------------------------------------------------------------------- | :---------------------------------------------------------------------------- | | May 1-31, 2025 | 94 | 144.00 | — | 40,647 | | June 1-30, 2025 | 49,318 | 235.43 | — | 40,647 | | July 1-31, 2025 | 2,896 | 226.19 | 1,000 | 40,447 | | **Total** | **52,308** | | **1,000** | | - For the three months ended July 31, 2025, the company accepted **95,977** shares of common stock for exercise price and/or tax withholding related to stock option exercises and share-based payment settlements[158](index=158&type=chunk) [Exhibits](index=43&type=section&id=Exhibits) This report includes exhibits such as the company's articles of incorporation, bylaws, certifications from the Chief Executive Officer and Chief Financial Officer, and XBRL data files - Exhibits include the company's articles of incorporation, bylaws, certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Exchange Act Rule 13a-14(c) and 18 U.S.C. Section 1350, and XBRL data files[160](index=160&type=chunk)

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Consolidated Financial Highlights](index=1&type=section&id=Consolidated%20Financial%20Highlights) Argan, Inc. reported strong Q2 and H1 FY2026 results with significant growth in revenue, profit, and a record project backlog Consolidated Financial Highlights (Q2 and Six Months Ended July 31, 2025 vs 2024) | Metric | Q2 FY2026 | Q2 FY2025 | Q2 Change | 6 Months FY2026 | 6 Months FY2025 | 6 Months Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenues | $237,743 | $227,015 | $10,728 (4.7%) | $431,403 | $384,697 | $46,706 (12.1%) | | Gross profit | $44,267 | $31,105 | $13,162 (42.3%) | $81,130 | $49,049 | $32,081 (65.4%) | | Gross margin % | 18.6% | 13.7% | 4.9% pts | 18.8% | 12.8% | 6.0% pts | | Net income | $35,275 | $18,198 | $17,077 (93.8%) | $57,825 | $26,080 | $31,745 (121.7%) | | Diluted EPS | $2.50 | $1.31 | $1.19 (90.8%) | $4.09 | $1.90 | $2.19 (115.3%) | | EBITDA | $36,225 | $24,842 | $11,383 (45.8%) | $66,524 | $36,732 | $29,792 (81.1%) | | EBITDA as % of revenues | 15.2% | 10.9% | 4.3% pts | 15.4% | 9.5% | 5.9% pts | | Cash dividends per share | $0.375 | $0.300 | $0.075 | $0.750 | $0.600 | $0.150 | Balance Sheet Highlights (As of July 31, 2025 vs January 31, 2025) | Metric | July 31, 2025 | January 31, 2025 | Change | | :--- | :--- | :--- | :--- | | Cash, cash equivalents and investments | $572,190 | $525,137 | $47,053 | | Net liquidity | $344,462 | $301,443 | $43,019 | | Project backlog | $1,953,000 | $1,361,000 | $592,000 | [CEO Commentary and Operational Highlights](index=1&type=section&id=CEO%20Commentary%20and%20Operational%20Highlights) The CEO highlighted continued momentum in Q2 FY2026, driven by strong demand and excellent project execution - Continued momentum in Q2 FY2026 was reflected in strong consolidated **revenue, gross margin, diluted EPS, and EBITDA**[3](index=3&type=chunk) - Demand across all business segments remains strong, contributing to a **record backlog of $2.0 billion**[4](index=4&type=chunk) - Key project milestones were achieved, including the **completion of an LNG project** in Louisiana, **first fire at Trumbull units**, and significant progress on renewable projects[5](index=5&type=chunk) - An EPC services contract was secured for the **Platin Power Station in Ireland**, adding approximately **170 MW** of generation capacity[5](index=5&type=chunk) - Argan is well-positioned to benefit from the urgent need for reliable energy resources to **strengthen the power grid**[6](index=6&type=chunk) [Financial Performance Analysis](index=3&type=section&id=Financial%20Performance%20Analysis) [Second Quarter Fiscal 2026 Results](index=3&type=section&id=Second%20Quarter%20Fiscal%202026%20Results) Argan's second quarter of fiscal 2026 demonstrated robust financial growth across key metrics, driven by increased project activity and improved margins [Revenue and Gross Profit Analysis](index=3&type=section&id=Revenue%20and%20Gross%20Profit%20Analysis_Q2) Q2 FY2026 consolidated revenues increased 4.7% YoY to $237.7 million, while gross profit surged 42.3% due to improved margins Q2 FY2026 Revenue and Gross Profit | Metric | July 31, 2025 | July 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $237,743 | $227,015 | $10,728 (4.7% increase) | | Gross profit | $44,267 | $31,105 | $13,162 (42.3% increase) | | Gross margin % | 18.6% | 13.7% | 4.9% pts increase | - Revenue increase was attributed to increased project activity from a growing number of current projects and contract backlog[7](index=7&type=chunk) - Improved gross profit margins were primarily due to the **Power Industry Services segment**[8](index=8&type=chunk) [Operating Expenses and Other Income](index=3&type=section&id=Operating%20Expenses%20and%20Other%20Income_Q2) SG&A expenses increased as a percentage of revenue, while other income remained stable and income tax expense significantly decreased Q2 FY2026 Operating Expenses and Other Income | Metric | July 31, 2025 | July 31, 2024 | | :--- | :--- | :--- | | Selling, general and administrative expenses | $14,212 | $12,428 | | SG&A as % of revenues | 6.0% | 5.5% | | Other income, net | $5,581 | $5,604 | | Income tax expense | $361 | $6,083 | - Income tax expense was significantly reduced due to a meaningful benefit from **favorable deductions resulting from stock option exercises**[10](index=10&type=chunk) [Net Income and Earnings Per Share](index=3&type=section&id=Net%20Income%20and%20Earnings%20Per%20Share_Q2) Net income for Q2 FY2026 nearly doubled to $35.3 million, resulting in a record diluted EPS of $2.50 Q2 FY2026 Net Income and Diluted EPS | Metric | July 31, 2025 | July 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Net income | $35,275 | $18,198 | $17,077 (93.8% increase) | | Diluted earnings per share | $2.50 | $1.31 | $1.19 (90.8% increase) | - A **record $2.50 per diluted share** was achieved for the quarter[11](index=11&type=chunk) [EBITDA Performance](index=3&type=section&id=EBITDA%20Performance_Q2) EBITDA for Q2 FY2026 increased by 45.8% to $36.2 million, with the corresponding margin expanding to 15.2% Q2 FY2026 EBITDA Performance | Metric | July 31, 2025 | July 31, 2024 | Change | | :--- | :--- | :--- | :--- | | EBITDA | $36,225 | $24,842 | $11,383 (45.8% increase) | | EBITDA as a % of revenues | 15.2% | 10.9% | 4.3% pts increase | [Liquidity and Financial Position](index=3&type=section&id=Liquidity%20and%20Financial%20Position_Q2) The company strengthened its financial position with increased cash and net liquidity, while remaining debt-free Liquidity and Financial Position (As of July 31, 2025 vs January 31, 2025) | Metric | July 31, 2025 | January 31, 2025 | Change | | :--- | :--- | :--- | :--- | | Cash, cash equivalents and investments | $572,190 | $525,137 | $47,053 | | Net liquidity | $344,462 | $301,443 | $43,019 | - The Company had **no debt** as of July 31, 2025[13](index=13&type=chunk) [First Six Months Fiscal 2026 Results](index=4&type=section&id=First%20Six%20Months%20Fiscal%202026%20Results) The first half of FY2026 saw substantial growth in revenues, a surge in gross profit, and a doubling of net income [Revenue and Gross Profit Analysis](index=4&type=section&id=Revenue%20and%20Gross%20Profit%20Analysis_6Months) H1 FY2026 revenues grew 12.1% YoY to $431.4 million, with gross profit increasing 65.4% and margin expanding to 18.8% Six Months FY2026 Revenue and Gross Profit | Metric | July 31, 2025 | July 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $431,403 | $384,697 | $46,706 (12.1% increase) | | Gross profit | $81,130 | $49,049 | $32,081 (65.4% increase) | | Gross margin % | 18.8% | 12.8% | 6.0% pts increase | [Net Income and Earnings Per Share](index=4&type=section&id=Net%20Income%20and%20Earnings%20Per%20Share_6Months) Net income for the first six months more than doubled to $57.8 million, driving diluted EPS to $4.09 Six Months FY2026 Net Income and Diluted EPS | Metric | July 31, 2025 | July 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Net income | $57,825 | $26,080 | $31,745 (121.7% increase) | | Diluted income per share | $4.09 | $1.90 | $2.19 (115.3% increase) | [EBITDA Performance](index=4&type=section&id=EBITDA%20Performance_6Months) EBITDA for H1 FY2026 increased by 81.1% to $66.5 million, with the margin rising to 15.4% of revenues Six Months FY2026 EBITDA Performance | Metric | July 31, 2025 | July 31, 2024 | Change | | :--- | :--- | :--- | :--- | | EBITDA | $66,524 | $36,732 | $29,792 (81.1% increase) | | EBITDA as a % of revenues | 15.4% | 9.5% | 5.9% pts increase | [Project Backlog](index=4&type=section&id=Project%20Backlog_6Months) Project backlog reached a record of approximately $2.0 billion, a significant increase from January 31, 2025 Project Backlog | Metric | July 31, 2025 | January 31, 2025 | Change | | :--- | :--- | :--- | :--- | | Project backlog | $1,953,000 | $1,361,000 | $592,000 (43.5% increase) | - Consolidated project backlog reached a **record of approximately $2.0 billion**[4](index=4&type=chunk)[15](index=15&type=chunk) [Company Overview and Strategic Outlook](index=3&type=section&id=Company%20Overview%20and%20Strategic%20Outlook) [About Argan](index=4&type=section&id=About%20Argan) Argan, Inc. provides construction and related services to the power industry, specializing in EPC for power plants and renewable facilities - Argan's primary business is providing a full range of **construction and related services to the power industry**[18](index=18&type=chunk) - Service offerings focus on **EPC of natural gas-fired power plants and renewable energy facilities**, along with commissioning, maintenance, and consulting services[18](index=18&type=chunk) - Key operations include **Gemma Power Systems, Atlantic Projects Company, The Roberts Company, and SMC Infrastructure Solutions**[18](index=18&type=chunk) [Strategic Focus and Market Opportunities](index=3&type=section&id=Strategic%20Focus%20and%20Market%20Opportunities) Argan is positioned to capitalize on growing energy demand by focusing on disciplined project execution in key geographies - Argan is well-positioned to benefit from the current demand environment as the industry responds to the urgent need for **reliable energy resources**[6](index=6&type=chunk) - The ongoing electrification requires an uninterrupted supply of reliable energy, for which Argan is a **proven partner** in constructing large power facilities[6](index=6&type=chunk) - The company remains focused on a **disciplined approach** to pursuing and winning the right projects, with the right partners, in the right geographies[6](index=6&type=chunk) [Supplemental Information](index=4&type=section&id=Supplemental%20Information) [Conference Call Details](index=4&type=section&id=Conference%20Call%20Details) The company hosted an investor conference call on September 4, 2025, with replay options available - An investor conference call and webcast were hosted on **September 4, 2025**, at 5:00 p.m. ET[16](index=16&type=chunk) - A replay of the teleconference is available until **September 18, 2025**, and a webcast replay until **September 4, 2026**[17](index=17&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) The company uses the non-GAAP measure EBITDA to supplement its operating results, excluding certain non-cash and financing effects - The Company uses **Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA")** as a non-GAAP financial measure[19](index=19&type=chunk) - EBITDA supplements the understanding of Argan's ongoing operating results by **excluding the effects of capital structure, depreciation, amortization, and income tax rates**[20](index=20&type=chunk) - This non-GAAP measure should be considered in conjunction with, and **not as a substitute for, GAAP financial information**[20](index=20&type=chunk) [Safe Harbor Statement](index=5&type=section&id=Safe%20Harbor%20Statement) The press release includes forward-looking statements subject to risks and uncertainties detailed in SEC filings - Certain matters discussed in the press release may constitute **forward-looking statements** within the meaning of federal securities laws[21](index=21&type=chunk) - Future financial performance is subject to risks and uncertainties, including the successful addition of new contracts to project backlog and the **Company's ability to successfully complete projects**[21](index=21&type=chunk) - Actual results and timing of events could differ materially from projections due to **risk factors described in the Company's SEC filings**[21](index=21&type=chunk) [Company Contacts](index=5&type=section&id=Company%20Contacts) Contact information is provided for company and investor relations inquiries - Company Contact: **David Watson**, 301.315.0027[22](index=22&type=chunk) - Investor Relations Contacts: **John Nesbett/Jennifer Belodeau**, IMS Investor Relations, 203.972.9200, argan@imsinvestorrelations.com[22](index=22&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Statements of Earnings](index=6&type=section&id=Statements%20of%20Earnings) This section presents unaudited statements of earnings for the three and six months ended July 31, 2025, and 2024 ARGAN, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (In thousands, except per share data) (Unaudited) | | Three Months Ended July 31, | | Six Months Ended July 31, | | | :--- | :--- | :--- | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | | REVENUES | $237,743 | $227,015 | $431,403 | $384,697 | | Cost of revenues | 193,476 | 195,910 | 350,273 | 335,648 | | GROSS PROFIT | 44,267 | 31,105 | 81,130 | 49,049 | | Selling, general and administrative expenses | 14,212 | 12,428 | 26,733 | 23,853 | | INCOME FROM OPERATIONS | 30,055 | 18,677 | 54,397 | 25,196 | | Other income, net | 5,581 | 5,604 | 11,025 | 10,398 | | INCOME BEFORE INCOME TAXES | 35,636 | 24,281 | 65,422 | 35,594 | | Income tax expense | 361 | 6,083 | 7,597 | 9,514 | | NET INCOME | 35,275 | 18,198 | 57,825 | 26,080 | | OTHER COMPREHENSIVE INCOME, NET OF TAXES | | Foreign currency translation adjustments | (251) | (186) | 3,370 | (976) | | Net unrealized (losses) gains on available-for-sale securities | (1,082) | 1,459 | 1,598 | 490 | | COMPREHENSIVE INCOME | $33,942 | $19,471 | $62,793 | $25,594 | | EARNINGS PER SHARE | | Basic | $2.57 | $1.36 | $4.23 | $1.96 | | Diluted | $2.50 | $1.31 | $4.09 | $1.90 | | WEIGHTED AVERAGE SHARES OUTSTANDING | | Basic | 13,731 | 13,403 | 13,680 | 13,331 | | Diluted | 14,131 | 13,880 | 14,122 | 13,727 | | CASH DIVIDENDS PER SHARE | $0.375 | $0.300 | $0.750 | $0.600 | [Balance Sheets](index=7&type=section&id=Balance%20Sheets) This section provides unaudited balance sheets as of July 31, 2025, and January 31, 2025, detailing assets, liabilities, and equity ARGAN, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share data) (Unaudited) | | July 31, 2025 | January 31, 2025 | | :--- | :--- | :--- | | ASSETS | | | | CURRENT ASSETS | | | | Cash and cash equivalents | $177,850 | $145,263 | | Investments | 394,340 | 379,874 | | Accounts receivable, net | 179,155 | 175,808 | | Contract assets | 23,741 | 28,430 | | Other current assets | 53,698 | 51,925 | | TOTAL CURRENT ASSETS | 828,784 | 781,300 | | Property, plant and equipment, net | 15,714 | 14,463 | | Goodwill | 28,033 | 28,033 | | Intangible assets, net | 1,630 | 1,826 | | Deferred taxes, net | — | 552 | | Right-of-use and other assets | 8,543 | 10,053 | | TOTAL ASSETS | $882,704 | $836,227 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | CURRENT LIABILITIES | | | | Accounts payable | $96,049 | $97,297 | | Accrued expenses | 71,453 | 83,319 | | Contract liabilities | 316,820 | 299,241 | | TOTAL CURRENT LIABILITIES | 484,322 | 479,857 | | Deferred taxes, net | 742 | — | | Noncurrent liabilities | 4,464 | 4,513 | | TOTAL LIABILITIES | 489,528 | 484,370 | | STOCKHOLDERS' EQUITY | | | | Preferred stock, par value $0.10 per share – 500,000 shares authorized; no shares issued and outstanding | — | — | | Common stock, par value $0.15 per share – 30,000,000 shares authorized; 15,828,289 shares issued; 13,811,575 and 13,634,214 shares outstanding at July 31, 2025 and January 31, 2025, respectively | 2,374 | 2,374 | | Additional paid-in capital | 166,616 | 168,966 | | Retained earnings | 340,276 | 292,698 | | Treasury stock, at cost – 2,016,714 and 2,194,075 shares at July 31, 2025 and January 31, 2025, respectively | (114,520) | (105,643) | | Accumulated other comprehensive loss | (1,570) | (6,538) | | TOTAL STOCKHOLDERS' EQUITY | 393,176 | 351,857 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $882,704 | $836,227 | [Reconciliation to EBITDA](index=8&type=section&id=Reconciliation%20to%20EBITDA) This section provides a reconciliation of net income (GAAP) to the non-GAAP measure EBITDA for the reported periods ARGAN, INC. AND SUBSIDIARIES RECONCILIATION TO EBITDA (In thousands) (Unaudited) | | Three Months Ended July 31, | | Six Months Ended July 31, | | | :--- | :--- | :--- | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | | Net income, as reported | $35,275 | $18,198 | $57,825 | $26,080 | | Income tax expense | 361 | 6,083 | 7,597 | 9,514 | | Depreciation | 491 | 463 | 906 | 943 | | Amortization of intangible assets | 98 | 98 | 196 | 195 | | EBITDA | $36,225 | $24,842 | $66,524 | $36,732 |

Group 1 - The article emphasizes the importance of fundamental analysis in guiding new and inexperienced investors towards achieving long-term returns and financial independence [1] - The focus is on dividend and growth equities across various sectors, indicating a diverse investment strategy [1] Group 2 - There are no disclosed positions in any mentioned companies, suggesting an unbiased perspective in the analysis [2] - The article does not provide specific investment recommendations, highlighting the need for individual assessment of investment suitability [3]

Group 1 - The demand for power in the US is experiencing significant growth for the first time in decades, driven by the expansion of data centers and Electric Vehicle (EV) charging infrastructure [1] - In 2024, electricity consumption is projected to increase by 128 TWh compared to 2023 [1]

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]

Group 1 - Argan, Inc. (NYSE: AGX) is positioned to benefit from increased energy demand driven by AI, data centers, and electric vehicles [1] - A significant portion of US thermal power plants built between the 1950s and 1970s are rapidly aging, creating opportunities for modernization and replacement [1]

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]