Financial Data and Key Metrics Changes - The company reported third quarter revenues of $251 million, a slight decrease from $257 million in the same quarter of fiscal 2025, primarily due to the completion of significant projects [7][18] - Gross profit for the third quarter was approximately $46.9 million, with a gross margin of 18.7%, up from 17.2% in the prior year [18][19] - Net income for the quarter was $30.7 million, or $2.17 per diluted share, compared to $28 million, or $2 per diluted share, for the same period last year [21] - EBITDA increased to $40.3 million, with an EBITDA margin of 16%, compared to 14.6% in the prior year [21][22] - The company maintained a strong balance sheet with $727 million in cash and investments, net liquidity of $377 million, and no debt [9][24] Business Line Data and Key Metrics Changes - Power Industry Services segment revenues decreased by 8% to $196 million, representing 78% of total revenues [10] - Industrial Construction Services segment revenues increased by 19% to $49 million, contributing 20% of consolidated revenues [10] - Telecommunications Infrastructure Services segment revenues grew by 76% to $6.3 million, accounting for 2% of total revenues [11] Market Data and Key Metrics Changes - The company has a record backlog of approximately $3 billion, which includes over 6 gigawatts of new thermal and renewable power plants [4][14] - The backlog consists of approximately 79% natural gas projects and 16% renewable projects, indicating a strong demand for new natural gas facilities [13][14] Company Strategy and Development Direction - The company aims to leverage its core competencies to capitalize on existing and emerging market opportunities, focusing on disciplined risk management and project management effectiveness [29][30] - There is a commitment to maintaining a presence in the renewable space while expecting gas-fired and other thermal power facilities to represent a substantial portion of the backlog in the near and midterm [13][14] - The company is dedicated to driving long-term value creation for shareholders through disciplined capital allocation and potential M&A opportunities [26][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment, driven by the electrification of everything and the aging of existing power facilities [5][12] - The company expects to continue adding projects to its backlog in the high-demand environment over the coming years [30] - Management highlighted the importance of reliable energy supply for AI data centers and complex manufacturing operations, positioning the company as a key player in energy infrastructure [12][27] Other Important Information - The company raised its quarterly dividend to $0.50, marking the third consecutive increase in the past three years [9][25] - The company has returned approximately $109.6 million to shareholders since initiating its share buyback program in November 2021 [26] Q&A Session Summary Question: Insights on margins moving forward - Management has not disclosed specific pricing on gas projects but maintains a flexible pricing model based on market conditions and project specifics [33][34] Question: Sustainable gross margin targets - Management remains conservative with margin guidance but has exceeded previous benchmarks, indicating excitement about future opportunities [35][36] Question: Manpower challenges with multiple projects - Labor remains a challenge, but the company is focused on growing its headcount to meet project demands [37][38] Question: Pipeline cadence and future job additions - Management expects to add a handful of jobs over the next 12 to 24 months but cannot predict exact timing due to project start date variability [42][44] Question: Changes in the competitive environment - The competitive landscape has shifted, with fewer companies able to handle large, complex projects, but there is enough work for all players in the market [45][46] Question: Project selection criteria - The company remains flexible in contract terms and is focused on building relationships with both repeat and new customers [53][56] Question: Opportunities from private players or hyperscalers - Management is open to participating in behind-the-meter projects and evaluates each opportunity based on fit and contract terms [62][63] Question: Geographic opportunities for gas generation - The company sees opportunities in various regions, including Texas and the PJM area, and is familiar with the competitive landscape there [70][71]

Financial Data and Key Metrics Changes - The company reported third-quarter revenues of $251 million, a slight decrease of 2% compared to $257 million in the same quarter of fiscal 2025, primarily due to project completions [7][18] - Gross profit for the third quarter was approximately $46.9 million, with a gross margin of 18.7%, up from 17.2% in the prior year [8][19] - Net income for the third quarter was $30.7 million, or $2.17 per diluted share, compared to $28 million, or $2 per diluted share, for the same quarter last year [21] - Year-to-date revenues increased by 6% to $682.6 million compared to $641.7 million for the prior year period [22] Business Line Data and Key Metrics Changes - Power Industry Services segment revenues decreased by 8% to $196 million, representing 78% of total revenues [10] - Industrial Construction Services segment revenues increased by 19% to $49 million, contributing 20% of consolidated revenues [11] - Telecommunications Infrastructure Services segment revenues grew by 76% to $6.3 million, contributing 2% of total revenues [11] Market Data and Key Metrics Changes - The company has a record backlog of approximately $3 billion, which includes significant projects in both thermal and renewable energy sectors [4][14] - The backlog is comprised of approximately 79% natural gas projects and 16% renewable projects, indicating a strong demand for new natural gas facilities [13] Company Strategy and Development Direction - The company aims to leverage its core competencies to capitalize on existing and emerging market opportunities while maintaining disciplined risk management [28] - There is a focus on expanding capabilities in the construction of energy infrastructure, particularly large combined cycle natural gas plants [27][29] - The company is committed to returning capital to shareholders, having raised its quarterly dividend to $0.50, marking the third consecutive increase [9][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment, driven by the electrification of everything and the aging of existing power plants [5][12] - The company anticipates adding a handful of projects over the next 12 to 24 months, although the timing of new projects is uncertain [43] - Management highlighted the competitive landscape, noting that only a few companies can execute large, complex combined cycle projects [46][47] Other Important Information - The company has no debt and reported $727 million in cash and investments, with net liquidity of $377 million [9][24] - The company has returned approximately $109.6 million to shareholders since initiating its share buyback program in November 2021 [26] Q&A Session Summary Question: Insights on margins moving forward - Management has not disclosed specific pricing on gas projects but maintains a flexible pricing model based on market conditions [34] Question: Sustainable gross margin targets - Management remains conservative with guidance but has exceeded previous benchmarks, currently at 18.8% [35][36] Question: Labor challenges with multiple projects - Management acknowledged labor challenges and emphasized the importance of skilled labor across projects [37] Question: Pipeline cadence and future project additions - Management expects to add a handful of jobs over the next 12 to 24 months but cannot predict exact timing [42][43] Question: Changes in the competitive environment - Management noted that competition for large complex projects has decreased, with only a few companies capable of executing such projects [46][47] Question: Project selection criteria - Management emphasized the importance of contract terms and the flexibility to work with various customers [55][56] Question: Size of future projects - Management indicated that future projects are likely to be large, with current U.S. jobs averaging over 1 GW each [60][61]

Financial Data and Key Metrics Changes - The company reported third quarter revenues of $251 million, a slight decrease from $257 million in the same quarter of fiscal 2025, primarily due to the completion of significant projects [6][16] - Gross profit for the third quarter was approximately $46.9 million, with a gross margin of 18.7%, up from 17.2% in the prior year [17] - Net income for the third quarter was $30.7 million, or $2.17 per diluted share, compared to $28 million, or $2 per diluted share, for the same quarter last year [18] - Year-to-date revenues increased by 6% to $682.6 million compared to $641.7 million for the prior year period [19] Business Line Data and Key Metrics Changes - Power Industry Services segment revenues decreased by 8% to $196 million, representing 78% of total revenues [9] - Industrial Construction Services segment revenues increased by 19% to $49 million, contributing 20% of consolidated revenues [10] - Telecommunications Infrastructure Services segment revenues grew by 76% to $6.3 million, contributing 2% of total revenues [10] Market Data and Key Metrics Changes - The current backlog stands at approximately $3 billion, reflecting strong demand for new power resources [4][13] - The backlog is comprised of approximately 79% natural gas projects and 16% renewable projects, indicating a significant focus on natural gas facilities [12] Company Strategy and Development Direction - The company aims to leverage its capabilities in building complex combined cycle facilities to meet the growing demand for reliable energy [11][23] - There is a commitment to maintaining a disciplined approach to capital allocation and pursuing strategic M&A opportunities [22][24] - The company is focused on organic growth while being alert to acquisition opportunities that enhance its capabilities [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the project pipeline and expects to add several new projects in the coming years [5][25] - The company highlighted the urgent need for new power resources due to aging infrastructure and increasing energy demand [11][23] - Management remains committed to executing diverse projects in the backlog and maintaining operational excellence [15][26] Other Important Information - The company has a strong balance sheet with $727 million in cash and investments, net liquidity of $377 million, and no debt [8][20] - A quarterly dividend of $0.50 was announced, marking the third consecutive increase in the past three years [8][22] Q&A Session Summary Question: Insights on margins moving forward - Management indicated that pricing models remain consistent, and while gross margins have exceeded expectations, it is too early to predict future margins [28][29] Question: Manpower challenges with multiple projects - Management acknowledged labor challenges but emphasized that they are at their largest headcount in history to manage the workload [30][31] Question: Pipeline activity expectations - Management expects to add a handful of jobs over the next 12 to 24 months but noted that timing is uncertain due to project start dates being controlled by developers [32][33] Question: Competitive environment changes - Management noted that competition for large complex projects has decreased, with only a few companies capable of executing such projects [35] Question: Project size and opportunities - Management stated that current projects average over one gigawatt, with no size limitations on future projects [40][41]

Financial Highlights - Q3 2026 consolidated revenues reached $251 million, a 2% decrease year-over-year but a 6% increase sequentially compared to Q2 2026[5] - Q3 2026 earnings per diluted share increased by 9% year-over-year to $2.17[5] - Q3 2026 EBITDA was $40.3 million, representing 16% of revenue[5] - The quarterly dividend increased by 33% to $0.50 per common share[5] Backlog and Projects - The project backlog reached a record of approximately $3.0 billion as of October 31, 2025[5] - The current backlog represents approximately 6GW in new energy builds[5] - Recent additions to the backlog include a 1,350 MW combined cycle power plant and an 860 MW natural gas-fired power plant, both in Texas[5] - Natural Gas projects account for 79% of the backlog, Renewable projects 16%, and Industrial projects 5%[20] Market Drivers and Growth - Electricity demand is projected to increase by 25% by 2030 and 78% by 2050[21, 40] - Data center power demand is projected to double to 945 TWh by 2030[14] - Electricity demand from EVs is projected to reach 780 TWh in 2030, increasing from 180 TWh in 2024[16] Balance Sheet and Capital Allocation - Cash, cash equivalents, and investments totaled $727 million as of October 31, 2025[28] - Net liquidity was $377 million as of October 31, 2025[28] - $109.6 million has been returned to shareholders through share repurchases since November 2021[33]

Financial Performance - For the three months ended October 31, 2025, total revenues decreased by 2.3% to $251.2 million compared to $257.0 million for the same period in 2024 [103]. - Revenues from the Power Industry Services segment decreased by 7.8% to $195.5 million, representing approximately 77.8% of consolidated revenues for the quarter [104]. - The Industrial Construction Services segment saw a revenue increase of 19.4%, reaching $49.4 million for the three months ended October 31, 2025 [106]. - The net income for the three months ended October 31, 2025, was $30.7 million, reflecting a 9.7% increase from $28.0 million in the same period of 2024 [103]. - The diluted earnings per share increased by 8.5% to $2.17 for the three months ended October 31, 2025, compared to $2.00 for the same period in 2024 [103]. - For the nine months ended October 31, 2025, consolidated revenues were $682.6 million, a 6.4% increase from $641.7 million in 2024 [114]. - Power Industry Services revenues increased by 11.4%, or $56.7 million, to $552.8 million for the nine months ended October 31, 2025, representing 81.0% of consolidated revenues [115]. - Industrial Construction Services revenues decreased by 14.9%, or $20.1 million, to $114.6 million for the nine months ended October 31, 2025, representing 16.8% of consolidated revenues [117]. - Telecommunications Infrastructure Services revenues for the nine-month period ended October 31, 2025, were $15.1 million, an increase of 38.8% from $10.9 million in 2024 [119]. - Consolidated gross profit for the three months ended October 31, 2025, was approximately $46.9 million, with a gross profit percentage of 18.7%, compared to $44.3 million and 17.2% for the same period in 2024 [109]. - Consolidated gross profit for the nine months ended October 31, 2025, was approximately $128.1 million, with a gross profit percentage of 18.8%, compared to $93.4 million and 14.6% in 2024 [121]. - For the three months ended October 31, 2025, EBITDA was $40.3 million, compared to $37.5 million for the same period in 2024, reflecting a year-over-year increase of 4.8% [148]. - For the nine months ended October 31, 2025, EBITDA was $106.8 million, up from $74.2 million in 2024, representing a year-over-year increase of 43.8% [148]. - Net income for the nine months ended October 31, 2025, was $88.6 million, a 63.7% increase from $54.1 million in 2024 [114]. Project Backlog and Future Opportunities - As of October 31, 2025, the consolidated project backlog amounts to $3.0 billion, significantly up from $1.4 billion on January 31, 2025, primarily driven by the Power Industry Services segment [89]. - The Industrial Construction Services segment's project backlog increased to approximately $158.8 million as of October 31, 2025, up from $53.2 million on January 31, 2025 [102]. - The company is committed to constructing state-of-the-art natural gas-fired power plants, targeting opportunities in the U.S., Ireland, and the U.K. [91]. - The company has received full notice to proceed for multiple significant projects, including an 860 MW natural gas-fired power plant and a 1.4 GW combined-cycle natural gas-fired power plant, both expected to begin construction in the fourth quarter of Fiscal 2026 [92][93]. Cash and Financial Position - As of October 31, 2025, cash and cash equivalents were $306.3 million, an increase of $161.0 million from January 31, 2025 [126]. - The company is in compliance with the financial covenants of its Credit Agreement as of October 31, 2025 [138]. - The company has no remaining cash investment commitments related to solar tax credit entities as of October 31, 2025 [143]. - A loan of $5.0 million was funded to support the development phase of a natural gas-fired power plant, which remains outstanding as of October 31, 2025 [145]. Expenses and Market Risks - Selling, General and Administrative Expenses were $14.3 million for the three months ended October 31, 2025, representing 5.7% of consolidated revenues, compared to $14.0 million and 5.4% in 2024 [110]. - Recent changes in U.S. trade policy may introduce cost and supply chain uncertainties, particularly affecting construction materials and equipment, which could impact project costs and timelines [87]. - There have been no material changes in the company's exposure to market risk during the nine months ended October 31, 2025 [151]. Contributions and Tax Credits - The company made cash contributions of $11.5 million to solar tax credit entities during the nine months ended October 31, 2025 [143]. - The company believes that EBITDA is a meaningful measure for assessing operating performance, although it is not calculated in accordance with U.S. GAAP [146].

Exhibit 99.1 Argan, Inc. Reports Third Quarter Fiscal 2026 Results Reports Record Backlog of $3.0 Billion December 4, 2025 – ARLINGTON, VA – Argan, Inc. (NYSE: AGX) ("Argan" or the "Company") today announces financial results for its third quarter of fiscal year 2026 ended October 31, 2025. The Company will host an investor conference call today, December 4, 2025, at 5:00 p.m. ET. Consolidated Financial Highlights ($ in thousands, except per share data) | For the Quarter Ended: | October 31, | | | | | --- | ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Argan (AGX) - Argan currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting a favorable outlook compared to the market [3] Price Performance - Over the past week, AGX shares have increased by 17.85%, outperforming the Zacks Building Products - Miscellaneous industry, which rose by 5.32% [5] - In a longer timeframe, AGX shares have risen by 55.47% over the past quarter and 135.66% over the last year, while the S&P 500 has only increased by 6.55% and 14.51%, respectively [6] Trading Volume - The average 20-day trading volume for AGX is 345,822 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, one earnings estimate for AGX has increased, raising the consensus estimate from $7.85 to $7.95 [9] - For the next fiscal year, one estimate has also moved upwards, with no downward revisions during the same period [9] Conclusion - Given the strong momentum indicators and positive earnings outlook, AGX is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [11]

Group 1: Company Performance - Argan (AGX) has returned approximately 156.2% since the beginning of the calendar year, significantly outperforming the average gain of 5.5% in the Construction group [4] - The Zacks Consensus Estimate for AGX's full-year earnings has increased by 14% over the past three months, indicating improving analyst sentiment and a positive earnings outlook [3] - Argan is currently ranked 1 (Strong Buy) in the Zacks Rank system, suggesting strong potential for future performance [3] Group 2: Industry Context - Argan belongs to the Building Products - Miscellaneous industry, which includes 33 individual stocks and currently holds a Zacks Industry Rank of 89, with an average loss of 2.9% this year [5] - Another stock in the Construction sector, Amentum Holdings (AMTM), has a year-to-date return of 35.8% and is ranked 2 (Buy) in the Zacks Rank system [4][5] - The Engineering - R and D Services industry, to which Amentum Holdings belongs, has gained 13% year to date, indicating a relatively stronger performance compared to the Building Products - Miscellaneous industry [6]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Argan (AGX) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][10]. Earnings Growth - Argan has a historical EPS growth rate of 37.4%, with projected EPS growth of 29.3% for the current year, significantly outperforming the industry average of 8.2% [4]. Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 154.2%, far exceeding the industry average of 3.1%, indicating strong operational efficiency and growth potential [5]. - Over the past 3-5 years, Argan's annualized cash flow growth rate has been 34.7%, compared to the industry average of 10% [6]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Argan, with the Zacks Consensus Estimate for the current year increasing by 2.6% over the past month, reinforcing its strong growth outlook [8][10]. Overall Assessment - Argan's combination of a Zacks Rank 1 (Strong Buy) and a Growth Score of A positions it as a potential outperformer and a solid choice for growth investors [10].

Core Insights - Three stocks with strong momentum and buy rankings are highlighted for investors: Kennametal Inc., Oceaneering International, Inc., and Argan, Inc. [1][2][3] Company Summaries - **Kennametal Inc. (KMT)**: - Zacks Rank: 1 - Current year earnings estimate increased by 25% over the last 60 days - Shares gained 27.6% over the last three months, while the S&P 500 declined by 5.4% - Momentum Score: A [1] - **Oceaneering International, Inc. (OII)**: - Zacks Rank: 1 - Current year earnings estimate increased by 11.7% over the last 60 days - Shares gained 25.4% over the past six months, while the S&P 500 declined by 15.4% - Momentum Score: B [2] - **Argan, Inc. (AGX)**: - Zacks Rank: 1 - Next year earnings estimate increased by 3.6% over the last 60 days - Shares gained 50.6% over the last three months, while the S&P 500 declined by 5.4% - Momentum Score: A [3]