Group 1 - Argan (NYSE: AGX) experienced strong topline growth in the last quarter, driven by the core power industry service segment [1] - The momentum is expected to continue into FY26 due to rising energy demand [1] Group 2 - The company has a strong foundation and is positioned for long-term success in the market [1]

Financial Data and Key Metrics Changes - Consolidated revenue growth for fiscal 2025 was 52%, reaching $874 million, with a gross margin of 16.1% and record diluted EPS of $6.15 [8][31] - Fourth quarter revenues increased 41% to $232.5 million, with a gross profit of approximately $47.6 million, reflecting a gross margin of approximately 20.5% [27][28] - Net income for the fourth quarter was $31.4 million, or $2.22 per diluted share, compared to $12 million, or $0.89 per diluted share for the same quarter last year [30] Business Segment Data and Key Metrics Changes - Power industry services segment revenues increased 65% to $197 million for the fourth quarter, representing 85% of total revenues [12] - Industrial construction services revenues decreased to $33 million from $41 million in the fourth quarter of fiscal 2024, contributing 14% of consolidated revenues [13][31] - Gross margins for the power industry services, industrial construction services, and telecommunications infrastructure services segments were 16.7%, 13.3%, and 23.8% respectively for fiscal 2025 [32] Market Data and Key Metrics Changes - The project backlog at January 31, 2025, was approximately $1.4 billion, an 80% increase compared to $757 million at January 31, 2024 [9][34] - The current project pipeline includes a significant portion of natural gas projects (54%) and renewable projects (42%) [17] Company Strategy and Development Direction - The company aims to leverage core competencies to capitalize on market opportunities while maintaining disciplined risk management [45] - The focus remains on strengthening its position as a partner of choice in constructing power generation facilities and driving organic growth [46] - The company anticipates that natural gas projects will be the core of its growth engine for the foreseeable future [35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment for energy resources, citing the urgent need for additional power generation capabilities [10][44] - The company noted that the aging power infrastructure and underinvestment in power facilities present significant opportunities for growth [43] - Management highlighted the importance of project execution and the ability to deliver on time and on budget as key competitive advantages [17][25] Other Important Information - The company has a strong balance sheet with $525 million in cash and investments, net liquidity of $301 million, and no debt [11][39] - The annual dividend rate was increased to $1.50 per common share, reflecting the strength of the business [11][41] - An investor day is scheduled for April 8, 2025, at the New York Stock Exchange [48] Q&A Session Summary Question: Can you break down the 20.5% gross margin further? - Management indicated that higher margins reflect strong execution and a favorable project mix, with more U.S.-based revenues contributing positively [52] Question: What needs to happen for the 1.2 gigawatt project to enter backlog? - Management stated that the full notice to proceed is required, and they are confident it will start in the summer [56] Question: Any updates on the interconnect side and potential impacts from the new administration? - Management noted progress by grid operators in addressing bottlenecks, but highlighted supply chain challenges as a larger headwind [58][59] Question: What is the status of the 405 megawatt solar project? - Management confirmed that it is a large project and is being executed well, with completion expected in calendar 2026 [62] Question: Can you provide insight into the project pipeline and customer base? - Management indicated that the pipeline is largely U.S.-based, with a focus on independent power producers, but they are open to all potential customers [70][75] Question: How do you see the trend in the industrial business? - Management reported strong demand for TRC and noted that new contracts have been added post-year-end, expecting revenue growth later in the year [77]

Financial Data and Key Metrics Changes - Consolidated revenue growth for fiscal year 2025 was 52%, reaching $874 million, with a gross margin of 16.1% and record diluted EPS of $6.15 [6][23] - Fourth quarter revenues increased by 41% to $232.5 million, with a gross profit of approximately $47.6 million, reflecting a gross margin of 20.5% [20][21] - Net income for the fourth quarter was $31.4 million, or $2.22 per diluted share, compared to $12 million, or $0.89 per diluted share for the same quarter last year [22][24] Business Line Data and Key Metrics Changes - Power Industry Services segment revenues increased by 65% to $197 million for the fourth quarter, contributing 85% of total revenues [10] - Industrial Construction Services revenues decreased to $33 million from $41 million in the fourth quarter of the previous fiscal year, contributing 14% of consolidated revenues [11] - Telecommunications Infrastructure Services contributed only 1% of fourth quarter revenues, with a focus on enhancing profitability through new leadership [12] Market Data and Key Metrics Changes - The project backlog at the end of fiscal year 2025 was approximately $1.4 billion, an 80% increase from $757 million at the end of fiscal year 2024 [7][26] - The current project pipeline includes a significant number of natural gas and renewable energy projects, with a strong demand environment expected to continue for the next decade [9][14] Company Strategy and Development Direction - The company aims to maintain a balance between natural gas and renewable projects, with natural gas expected to be the core growth engine for the foreseeable future [26][32] - The focus is on leveraging core competencies to capitalize on market opportunities while maintaining disciplined risk management [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment for energy resources, citing the urgent need for additional power generation capabilities [9][31] - The company is well-positioned to drive growth due to its proven track record and strong relationships within the industry [14][32] Other Important Information - The company has a strong balance sheet with $525 million in cash and investments, net liquidity of $301 million, and no debt as of January 31, 2025 [9][29] - A 25% increase in the annual dividend rate to $1.5 per common share was approved, reflecting the company's financial strength [9][30] Q&A Session Summary Question: Can you break down the 20.5% gross margin further? - Management indicated that strong execution and a favorable project mix contributed to the high margin, with a shift towards more U.S.-based revenues [36][37] Question: What needs to happen for the 1.2 gigawatt project to enter backlog? - Management expects to receive the full notice to proceed for the project in the summer, at which point it will be included in the backlog [40] Question: How is the interconnect situation improving? - Management noted progress by grid operators in addressing bottlenecks, although supply chain challenges remain [41][42] Question: What is the timeline for the 405 megawatt solar project? - The project is expected to be completed in calendar year 2026, with current execution going well [43][44] Question: How many projects are in the pipeline and what regions are active? - The pipeline is largely U.S.-based, with significant activity expected in Texas and across the country over the next six months [51][52] Question: How is the industrial business expected to trend? - Management anticipates growth in the industrial segment, particularly in water treatment and data center projects, following a recent drop in backlog [55][56]

Financial Performance - TRC's revenues increased to $167.6 million for Fiscal 2025 from $92.8 million for Fiscal 2023, reflecting a growth emphasis on larger field service construction projects[41]. - SMC's revenues were $13.5 million, $14.3 million, and $16.2 million for Fiscal 2025, Fiscal 2024, and Fiscal 2023, respectively, representing approximately 2%, 2%, and 4% of consolidated revenues[47]. - For Fiscal 2025, significant customer relationships accounted for approximately 28%, 13%, and 10% of consolidated revenues, compared to 19%, 16%, and 15% in Fiscal 2024[35]. Renewable Energy - Revenues associated with renewable energy projects represented 40.1% of the power industry services segment's revenues for Fiscal 2025, up from 6.9% in Fiscal 2024[61]. - The company committed to investments totaling $32.9 million in solar energy funds to secure investment tax credits and tax depreciation[64]. - The company expects revenues from renewable energy projects to continue representing meaningful portions of its consolidated revenues, although it may decrease as a percentage due to growth in non-renewable revenues[61]. Regulatory and Compliance - The company is subject to various federal, state, local, and foreign regulations, ensuring compliance with licensing, building codes, and environmental protection[36]. - The company is in compliance with the financial covenants of the New Credit Agreement as of January 31, 2025[53]. Financing and Credit Agreements - The company executed a New Credit Agreement with Bank of America, reducing the base lending commitment from $50.0 million to $35.0 million, with an accordion feature allowing an additional $30.0 million[51]. - As of January 31, 2025, the company had no outstanding borrowings under the New Credit Agreement, and there were no outstanding letters of credit issued[52]. - The company maintains a commitment from the Bank to issue irrevocable standby letters of credit up to an aggregate amount of $60.0 million under the credit facilities[57]. - The company has pledged the majority of its assets to secure financing arrangements, with no consent required from the Bank for acquisitions or significant investments under certain conditions[53]. Operational Challenges - Supply chain constraints are currently affecting the availability of critical components, causing delays in construction timelines for new gas-fired power plants[25]. - The costs of materials for projects may fluctuate, and the company has taken steps to mitigate material cost risks during periods of increased volatility[26]. - The competitive landscape for gas-fired power plant construction has evolved, with fewer competitors and a resurgence of interest in the market due to increasing demand[30][31]. Project and Capacity Management - The power industry services segment is currently engaged in projects representing approximately 2.9 gigawatts of potential electrical power[20]. - The estimated amount of unsatisfied bonded performance obligations was approximately $0.7 billion as of January 31, 2025[58]. - TRC consolidated its metal fabrication plants into one facility totaling over 90,000 square feet, reducing fixed costs and streamlining operations[41]. Interest Rates and Investments - The weighted average annual interest rate of the company's certificates of deposit, money market fund, and U.S. Treasury notes was 4.1% as of January 31, 2025[291].

Financial Performance - Consolidated revenues for Q4 2025 were $232.5 million, an increase of $67.9 million, or 41%, compared to $164.6 million in Q4 2024[8]. - For the fiscal year 2025, consolidated revenues were $874.2 million, an increase of $300.8 million, or 52.5%, from $573.3 million in fiscal 2024[16]. - Revenues for the three months ended January 31, 2025, were $232.474 million, a 41.3% increase from $164.554 million in the same period of 2024[30]. Profitability - Gross profit for Q4 2025 was $47.6 million, representing a gross margin of 20.5%, up from 14.4% in Q4 2024[9]. - Gross profit for the fiscal year ended January 31, 2025, was $140.989 million, compared to $80.834 million in 2024, reflecting a 74.5% increase[30]. - Net income for Q4 2025 reached $31.4 million, or $2.22 per diluted share, compared to $12.0 million, or $0.89 per diluted share, in the same quarter last year[12]. - The company recorded a net income of $85.5 million for fiscal 2025, or $6.15 per diluted share, compared to $32.4 million, or $2.39 per diluted share, in fiscal 2024[21]. - Net income for the three months ended January 31, 2025, was $31.369 million, up from $12.018 million in the prior year, representing a 161.5% increase[30]. EBITDA - EBITDA for Q4 2025 was $39.3 million, compared to $17.6 million in Q4 2024[12]. - EBITDA for the fiscal year ended January 31, 2025, was $113.500 million, significantly higher than $51.338 million in 2024, indicating a 121.5% growth[34]. Assets and Liabilities - Cash, cash equivalents, and investments totaled $525.1 million as of January 31, 2025, up from $412.4 million a year earlier[13]. - Total current assets increased to $781.300 million as of January 31, 2025, from $547.179 million in 2024, marking a 42.6% rise[32]. - Total liabilities rose to $484.370 million in 2025, compared to $307.290 million in 2024, reflecting a 57.6% increase[32]. - Cash and cash equivalents decreased to $145.263 million in 2025 from $197.032 million in 2024, a decline of 26.3%[32]. Expenses - Selling, general and administrative expenses for fiscal 2025 increased to $52.8 million, but as a percentage of revenues, they declined to 6.0% from 7.7% in the prior year[18]. Dividends and Shares - The company declared cash dividends per share of $0.375 for the three months ended January 31, 2025, up from $0.300 in the same period of 2024[30]. - Weighted average shares outstanding for diluted shares increased to 14.135 million in 2025 from 13.548 million in 2024[30]. Project Backlog - Project backlog grew to $1.4 billion as of January 31, 2025, including significant contracts for a 700 MW natural gas project in the U.S. and a 300 MW biofuel power plant in Ireland[5]. Comprehensive Income - Comprehensive income for the fiscal year ended January 31, 2025, was $82.518 million, compared to $31.637 million in 2024, an increase of 160.5%[30].

Group 1 - Argan, Inc. (NYSE: AGX) operates in the construction and engineering segments, primarily providing infrastructure for energy companies [1] - The previous analysis of AGX in September resulted in a buy rating [1] - The company has a beneficial long position in its shares through various financial instruments [1]

Core Insights - The article highlights Steven Cress's role as VP of Quantitative Strategy and Market Data at Seeking Alpha, emphasizing his contributions to the platform's quantitative stock rating system and analytical tools designed to assist investors in making informed decisions [1][2]. Group 1: Company Overview - Seeking Alpha has developed a quantitative stock rating system that interprets data for investors, aiming to save time and provide insights on investment directions [1]. - The platform offers a systematic stock recommendation tool called Alpha Picks, which is designed for long-term investors to build a high-quality portfolio [1]. Group 2: Leadership and Experience - Steven Cress has over 30 years of experience in equity research, quantitative strategies, and portfolio management, positioning him as an expert in various investment topics [4]. - Prior to joining Seeking Alpha, Cress founded CressCap Investment Research, which was acquired by Seeking Alpha in 2018, and he also established the quant hedge fund Cress Capital Management [3]. Group 3: Investment Philosophy - Cress is dedicated to eliminating emotional biases from investment decisions by employing a data-driven approach that utilizes sophisticated algorithms and technologies [2]. - The investment research process is simplified through a daily updated grading system for stock trading recommendations, making it more accessible for investors [2].

Steven Cress Background and Expertise - Steven Cress is the VP of Quantitative Strategy and Market Data at Seeking Alpha, responsible for creating the platform's quantitative stock rating system and analytical tools [1] - He is the Founder and Co-Manager of Alpha Picks, a systematic stock recommendation tool aimed at helping long-term investors build high-quality portfolios [1] - Steven Cress has over 30 years of experience in equity research, quantitative strategies, and portfolio management, making him a seasoned expert in investment topics [4] Data-Driven Investment Approach - Steven Cress emphasizes removing emotional biases from investment decisions by utilizing a data-driven approach [2] - He leverages sophisticated algorithms and technologies to simplify complex investment research, offering a daily updated grading system for stock trading recommendations [2] Career History and Achievements - Steven Cress was the Founder and CEO of CressCap Investment Research, which was acquired by Seeking Alpha in 2018 for its exceptional quantitative analysis and market data capabilities [3] - Prior to CressCap, he founded the quant hedge fund Cress Capital Management and held significant roles at Morgan Stanley and Northern Trust, including running a proprietary trading desk and leading international business development [3]

Project Backlog and Revenues - Consolidated project backlog as of October 31, 2024, was $0.8 billion, primarily from the power industry services segment[113] - Approximately 60.0% of the project backlog at October 31, 2024, related to renewable energy projects[115] - Revenues from renewable energy projects accounted for 42.7% and 38.7% of power industry services segment revenues for the three and nine months ended October 31, 2024, respectively[115] - TRC's project backlog decreased to $66.4 million as of October 31, 2024, from $127.5 million on January 31, 2024, but revenues increased to $134.7 million for the nine months ended October 31, 2024, compared to $101.5 million in the prior year[130] Project Completion and Development - The 405 MW Midwest Solar Project is scheduled for completion in the first half of fiscal year 2027[119] - The Trumbull Energy Center, a 950 MW natural gas-fired power plant, is expected to be completed in the last quarter of fiscal 2026[120] - The Midwest Solar and Battery Projects, totaling 160 MW of electrical power and 22 MW of energy storage, are expected to be completed between the last quarter of fiscal 2025 and the first half of fiscal 2026[121] - The Louisiana LNG Facility project, involving the installation of five 90 MW gas turbines, is scheduled for completion in fiscal 2026[122] - The Shannonbridge Power Project, with a capacity of 264 MW, achieved substantial completion in March 2024[123] - The ESB FlexGen Peaker Plants, totaling 195 MW, achieved substantial completion during the quarter ended October 31, 2024[124] Renewable Energy and Electricity Generation - Utility-scale solar and wind facilities provided 12%, 13%, and 15% of U.S. electricity generation in 2021, 2022, and 2023, respectively[137] - 71% of the 62.8 gigawatts of new utility-scale electric-generating capacity planned for 2024 is expected to come from solar and wind facilities[138] - The Irish government aims to generate 80% of the country's electricity from renewables by 2030, requiring new support technologies and conventional generation[156] - The U.K. government, under Prime Minister Keri Starmer, is accelerating the transition to renewable energy while acknowledging the role of gas as a transitional fuel[157] Financial Performance - Consolidated revenues for the three months ended October 31, 2024, increased by 56.9% to $257.0 million compared to $163.8 million in the same period in 2023[164] - Power industry services revenues increased by 74.9% to $212.1 million for the three months ended October 31, 2024, driven by increased construction activities[165] - Industrial Construction Services segment revenue increased by $2.9 million (7.6%) to $41.3 million for the three months ended October 31, 2024, compared to $38.4 million in the same period last year[168] - Telecommunications Infrastructure Services segment revenue decreased by $0.4 million (11.1%) to $3.6 million for the three months ended October 31, 2024[169] - Consolidated cost of revenues increased by 47.2% to $212.7 million for the three months ended October 31, 2024, compared to $144.5 million in the same period last year[170] - Consolidated gross profit increased to $44.3 million (17.2% of revenues) for the three months ended October 31, 2024, up from $19.2 million (11.7% of revenues) in the same period last year[171][172] - Net income for the three months ended October 31, 2024, was $28.0 million ($2.00 per diluted share), compared to $5.5 million ($0.40 per diluted share) in the same period last year[179] - Consolidated revenues for the nine months ended October 31, 2024, increased by $232.9 million (57.0%) to $641.7 million, compared to $408.8 million in the same period last year[180] - Power Industry Services segment revenue increased by $199.3 million (67.1%) to $496.1 million for the nine months ended October 31, 2024, compared to $296.8 million in the same period last year[181] - Consolidated gross profit for the nine months ended October 31, 2024, was $93.4 million (14.6% of revenues), up from $57.2 million (14.0% of revenues) in the same period last year[188] - Net income for the nine months ended October 31, 2024, was $54.1 million ($3.91 per diluted share), compared to $20.3 million ($1.50 per diluted share) in the same period last year[196] - EBITDA for the three months ended October 31, 2024, was $37.5 million, compared to $12.2 million for the same period in 2023[215] - EBITDA for the nine months ended October 31, 2024, was $74.2 million, compared to $33.8 million for the same period in 2023[217] Liquidity and Investments - Cash and cash equivalents decreased by $21.7 million to $175.3 million as of October 31, 2024, compared to $197.0 million as of January 31, 2024[197] - Net liquidity increased by $36.1 million to $281.0 million as of October 31, 2024, compared to $244.9 million as of January 31, 2024[202] - Total investments in CDs, U.S. Treasury notes, and corporate debt securities amounted to approximately $330.9 million as of October 31, 2024[201] - The New Credit Agreement reduces the base lending commitment from $50.0 million to $35.0 million and includes an accordion feature allowing for an additional $30.0 million[203] Obligations and Guarantees - The company's unsatisfied bonded performance obligations were approximately $0.3 billion as of October 31, 2024[210] - Outstanding bonds covering warranty obligations and contract payment retentions were $22.9 million as of October 31, 2024[210] - The company made a final $3.3 million cash payment to a solar tax credit entity during the nine months ended October 31, 2024[212] - The company provided a financial guarantee of up to $3.6 million in support of business development efforts[211] Regulatory and Market Conditions - The Vogtle Units 3 and 4 nuclear reactors entered commercial operations in July 2023 and April 2024, respectively, with costs more than twice initial estimates[139] - The Inflation Reduction Act of 2022 includes tax subsidies conditioned on "buy American" and prevailing wage requirements, potentially limiting economic incentives[140] - The EPA issued final rules requiring coal-fired power plants operating beyond 2039 to reduce carbon emissions by 90% by 2032[143] - PJM's capacity auction for the 2025/2026 delivery year resulted in a price of $269.92/MW-day, a significant increase from the previous auction's $28.92/MW-day[152]

Exhibit 99.1 Argan, Inc. Reports Third Quarter Fiscal 2025 Results December 5, 2024 – ROCKVILLE, MD – Argan, Inc. (NYSE: AGX) ("Argan" or the "Company") today announces financial results for its third quarter of fiscal year 2025 ended October 31, 2024. The Company will host an investor conference call today, December 5, 2024, at 5:00 p.m. ET. Consolidated Financial Highlights ($ in thousands, except per share data) | --- | --- | --- | --- | --- | |--------------------------------|----------------|-------|-- ...