Financial Performance - Consolidated revenues increased by 38.5% in Q4 and 26.0% for Fiscal Year 2024[4] - Power Industry Services Q4 revenues increased 32.6%; FY revenues grew 20.3%[4] - Industrial Construction Services Q4 revenues increased 64.5%; FY revenues grew 53.9%[4] - Earnings per diluted share were $0.89 for Q4 and $2.39 for FY[4] - The company repurchased 303,160 shares of common stock at a cost of $12.5 million during FY 2024[4] - Quarterly dividend increased 20% during the year to $0.30 per common share, totaling $1.10 per share for FY 2024[4] Backlog and Projects - The company has a healthy backlog of $0.8 billion, including new gas & renewable project agreements awarded subsequent to year end[4] - Gemma Power Services is executing an EPC services contract for a 950 MW natural gas-fired power plant in Lordstown, Ohio[14] - Solar and battery plants in Illinois will represent 160 MW of electrical power and 22 MW of energy storage[15] Market and Strategy - AI power demand is projected to grow at an annual average of 70% through 2027[12] - Argan is positioned to support the growth in electricity demand, with recent forecasts indicating a 4.7% rise in US electricity demand over the next five years[37] - Since November 2021, Argan has returned a total of $101.2 million to shareholders through share repurchases and dividends[32]

Part I This section provides an overview of the company's business operations, risk factors, property details, and legal proceedings [Business](index=3&type=section&id=ITEM%201.%20BUSINESS) Argan, Inc. is a holding company operating through four primary subsidiaries: Gemma Power Systems (GPS), Atlantic Projects Company (APC), The Roberts Company (TRC), and Southern Maryland Cable (SMC), structured into three reportable segments - Argan operates as a holding company with four main subsidiaries: GPS, APC, TRC, and SMC, organized into three reportable business segments[12](index=12&type=chunk) Segment Revenue Contribution (as % of Consolidated Revenues) | Segment | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 | | :--- | :--- | :--- | :--- | | Power Industry Services | 73% | 76% | 78% | | Industrial Construction Services | 25% | 20% | 19% | | Telecommunications Infrastructure Services | 2% | 4% | 3% | [Power Industry Services (GPS and APC)](index=3&type=section&id=Power%20Industry%20Services) This segment, comprising GPS in the U.S. and APC in Ireland and the U.K., is Argan's primary revenue driver, contributing 73% of consolidated revenues in Fiscal 2024 Power Industry Services Financials | Metric | Fiscal 2024 (Millions) | Fiscal 2023 (Millions) | Fiscal 2022 (Millions) | | :--- | :--- | :--- | :--- | | Revenues | $416.3 | $346.0 | $398.1 | | % of Consolidated Revenues | 73% | 76% | 78% | - Project backlog for the power industry services segment was approximately **$0.6 billion** at January 31, 2024, a decrease from **$0.7 billion** at January 31, 2023[18](index=18&type=chunk) - For Fiscal 2024, three power industry services customers accounted for **19%**, **16%**, and **15%** of consolidated revenues, respectively[35](index=35&type=chunk) - The company is targeting growth in renewable energy projects, including utility-scale solar, wind, battery storage, and hydrogen plants, to complement its natural gas-fired power plant business[22](index=22&type=chunk) [Industrial Construction Services (TRC)](index=7&type=section&id=Industrial%20Construction%20Services) The Industrial Construction Services segment, operated by The Roberts Company (TRC), provides industrial construction and field services, primarily in the Southeast U.S Industrial Construction Services Financials | Metric | Fiscal 2024 (Millions) | Fiscal 2023 (Millions) | Fiscal 2022 (Millions) | | :--- | :--- | :--- | :--- | | Revenues | $142.8 | $92.8 | $97.9 | | % of Consolidated Revenues | 25% | 20% | 19% | - TRC's project backlog grew over **175%** from January 31, 2022, to **$127.5 million** as of January 31, 2024, reflecting a strategic shift towards larger field service projects[45](index=45&type=chunk) [Telecommunications Infrastructure Services (SMC)](index=8&type=section&id=Telecommunications%20Infrastructure%20Services) This segment, operating as SMC Infrastructure Solutions, provides utility construction and technology wiring solutions, primarily in the Mid-Atlantic U.S Telecommunications Infrastructure Services Revenues | Fiscal Year | Revenues (Millions) | | :--- | :--- | | 2024 | $14.3 | | 2023 | $16.2 | | 2022 | $13.4 | - In Fiscal 2022, SMC acquired Lee Telecommunications, Inc. (LTI) for **$0.6 million** in cash, expanding its services into the Tidewater area of Virginia[52](index=52&type=chunk) [Corporate and Other Information](index=8&type=section&id=Corporate%20and%20Other%20Information) As of January 31, 2024, Argan employed 1,214 people and maintained a $50.0 million credit facility, with a strong commitment to safety and sustainability - The company had **1,214 employees** as of January 31, 2024[54](index=54&type=chunk) - Argan has a **$50.0 million** credit agreement with Bank of America, secured by a majority of its assets, which it expects to renew before its May 31, 2024 expiration. As of January 31, 2024, there were no borrowings, but **$9.3 million** in letters of credit were outstanding[55](index=55&type=chunk)[56](index=56&type=chunk) - The company's OSHA reportable incident rate for calendar year 2023 was **0.43**, significantly better than the national industry average[58](index=58&type=chunk) - Unsatisfied bonded performance obligations for all subsidiaries totaled approximately **$0.5 billion** as of January 31, 2024[62](index=62&type=chunk) [Risk Factors](index=11&type=page&id=ITEM%201A.%20RISK%20FACTORS) The company identifies several categories of risks that could materially affect its business, including project dependency, market competition, regulatory changes, and operational challenges - A majority of consolidated revenues are derived from a small number of large, long-term EPC services contracts, making financial results potentially uneven and dependent on winning new projects[78](index=78&type=chunk)[82](index=82&type=chunk) - The company primarily uses fixed-price contracts, which expose it to risks of cost overruns due to inaccurate estimates, inflation, supply chain delays, or labor productivity issues, potentially leading to reduced profits or losses[118](index=118&type=chunk)[119](index=119&type=chunk) - Regulatory hurdles, including the Biden Administration's goal for a carbon-free electricity sector by 2035 and proposed EPA rules, pose significant risks to the future development of fossil-fuel energy facilities[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) - The company is exposed to cybersecurity risks, including a complex criminal scheme in March 2023 that resulted in fraudulently-induced wire transfers and a net loss of **$2.7 million**[139](index=139&type=chunk) - Project backlog of **$0.8 billion** as of January 31, 2024, is not a guaranteed indicator of future revenue, as projects can be delayed, modified, or cancelled by customers[87](index=87&type=chunk)[88](index=88&type=chunk) [Unresolved Staff Comments](index=26&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS) The company reports that it has no unresolved staff comments from the Securities and Exchange Commission - None[154](index=154&type=chunk) [Cybersecurity](index=26&type=section&id=ITEM%201C.%20CYBERSECURITY) Argan manages cybersecurity risk through a decentralized program with corporate oversight, technical measures, employee training, and incident response plans - Cybersecurity risk is managed at the subsidiary level with corporate oversight, integrating into the broader enterprise risk management framework. The audit committee of the board of directors oversees this area[155](index=155&type=chunk)[156](index=156&type=chunk) - The company's strategy includes technical defenses, regular employee training on threats like phishing, security screening for third-party vendors, and maintaining cybersecurity insurance[157](index=157&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk) - In March 2023, the company was the target of a criminal scheme that resulted in fraudulently-induced wire transfers, leading to a recognized loss of **$2.7 million** after recovery efforts and professional fees[167](index=167&type=chunk) [Properties](index=27&type=section&id=ITEM%202.%20PROPERTIES) The company and its subsidiaries own and lease various properties for their operations, which are considered sufficient for current and foreseeable needs - GPS owns its **23,380 sq. ft.** headquarters in Glastonbury, Connecticut[168](index=168&type=chunk) - TRC owns its **90,000 sq. ft.** industrial fabrication and warehouse facility in Winterville, North Carolina[169](index=169&type=chunk) - APC owns office and warehouse space in Ireland and leases additional space in Ireland and England[170](index=170&type=chunk) - SMC leases its primary office and maintenance facilities in Maryland and Virginia[171](index=171&type=chunk) [Legal Proceedings](index=29&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS) The company states that no current legal proceedings are expected to have a material adverse effect on its consolidated financial statements - The company is not currently involved in any legal proceedings that are expected to have a material effect on its financial statements[173](index=173&type=chunk) [Mine Safety Disclosures](index=29&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the company's operations - Not applicable[174](index=174&type=chunk) Part II This section details the company's common equity market, stock repurchase programs, management's financial discussion, market risks, and financial statements [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=30&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) Argan's common stock trades on the NYSE under the symbol AGX, with a history of paying dividends and an active share repurchase program - In September 2023, the board of directors increased the regular quarterly cash dividend by **20%** from **$0.25** to **$0.30 per share**[177](index=177&type=chunk) - The company has a share repurchase program authorized up to **$125 million**. Repurchases may occur in the open market or through other transactions[179](index=179&type=chunk) Share Repurchases for Q4 Fiscal 2024 | Period | Total Shares Repurchased | Average Price per Share Paid | | :--- | :--- | :--- | | Nov 2023 | 4,881 | $44.40 | | Dec 2023 | 7,721 | $43.60 | | Jan 2024 | 80,125 | $43.67 | | **Total** | **92,727** | | [[Reserved]](index=32&type=section&id=ITEM%206.%20%5BRESERVED%5D) This item is reserved and contains no information - None [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=ITEM%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) For Fiscal 2024, consolidated revenues increased 26.0% to $573.3 million, despite a gross profit decline due to a significant project loss, while maintaining a strong financial position and project backlog Fiscal 2024 vs. Fiscal 2023 Key Financials | Metric | Fiscal 2024 (Millions) | Fiscal 2023 (Millions) | % Change | | :--- | :--- | :--- | :--- | | Consolidated Revenues | $573.3 | $455.0 | 26.0% | | Consolidated Gross Profit | $80.8 | $86.4 | (6.4)% | | Net Income Attributable to Stockholders | $32.4 | $33.1 | (2.2)% | | Diluted EPS | $2.39 | $2.33 | 2.6% | - The primary driver for the decrease in gross profit was a **$13.6 million** loss recognized on the Kilroot Power Station project in Northern Ireland[192](index=192&type=chunk)[213](index=213&type=chunk) - Consolidated project backlog was **$0.8 billion** as of January 31, 2024, primarily composed of projects in the power industry services segment[196](index=196&type=chunk) [Results of Operations (Fiscal 2024 vs. 2023)](index=42&type=section&id=Results%20of%20Operations) Fiscal 2024 revenues increased by 26.0% to $573.3 million, driven by growth in power and industrial services, though consolidated gross margin decreased due to a project loss Segment Revenue Performance (Fiscal 2024 vs 2023) | Segment | FY24 Revenue (Millions) | FY23 Revenue (Millions) | % Change | | :--- | :--- | :--- | :--- | | Power Industry Services | $416.3 | $346.0 | +20.3% | | Industrial Construction Services | $142.8 | $92.8 | +53.9% | | Telecommunications Infrastructure | $14.3 | $16.2 | -12.2% | - Consolidated gross profit was adversely impacted by a **$13.6 million** loss recorded for the Kilroot Power Station project[263](index=263&type=chunk) - Other income increased by **188.0%** to **$12.5 million**, primarily due to a **$14.1 million** gain on invested funds, partially offset by a **$3.0 million** wire-transfer fraud loss[267](index=267&type=chunk) - The effective income tax rate for Fiscal 2024 was **33.9%**, higher than the statutory rate primarily because the net operating loss of the U.K. subsidiary, where the Kilroot loss was recorded, was not tax effected with a benefit[268](index=268&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) As of January 31, 2024, the company had $197.0 million in cash and cash equivalents, strong operating cash flow, no debt, and increased net liquidity Cash and Cash Equivalents | Date | Balance (Millions) | | :--- | :--- | | Jan 31, 2024 | $197.0 | | Jan 31, 2023 | $173.9 | Cash Flow Summary - Fiscal 2024 | Activity | Cash Flow (Millions) | | :--- | :--- | | Operating Activities | $116.9 provided | | Investing Activities | ($67.6) used | | Financing Activities | ($26.1) used | - The company has no outstanding borrowings under its **$50.0 million** credit facility, but had **$9.3 million** in letters of credit issued as of January 31, 2024[281](index=281&type=chunk) - Unsatisfied bonded performance obligations were approximately **$0.5 billion** as of January 31, 2024, down from **$0.6 billion** the prior year[285](index=285&type=chunk) [Critical Accounting Policies](index=49&type=section&id=Critical%20Accounting%20Policies) The company identifies revenue recognition on long-term construction contracts and income tax reporting as critical accounting policies requiring significant management judgment - Revenue on fixed-price contracts is recognized over time using the cost-to-cost method, which depends on management's ongoing estimates of total costs to complete each project. Inaccuracies can lead to material changes in recognized revenue and profit[304](index=304&type=chunk)[307](index=307&type=chunk) - The company includes variable consideration (e.g., unapproved change orders, claims) in the transaction price when it is probable a significant revenue reversal will not occur. As of Jan 31, 2024, **$8.4 million** of such variations were included in transaction prices pending customer approval[311](index=311&type=chunk)[313](index=313&type=chunk) - Accounting for uncertain tax positions is critical, as demonstrated by the settlement with the IRS over prior-year R&D credits, which resulted in a **$6.2 million** unfavorable adjustment to income tax expense in Fiscal 2023[320](index=320&type=chunk) - The company must assess the realizability of deferred tax assets, such as the **$13.8 million** related to foreign NOLs. A valuation allowance of **$17.8 million** exists, which was increased by **$2.1 million** in Fiscal 2024 due to revised future earnings estimates for the U.K. subsidiary[498](index=498&type=chunk)[323](index=323&type=chunk)[501](index=501&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risks include interest rate fluctuations, foreign currency risk, and commodity price volatility, managed without extensive hedging - The company is exposed to interest rate risk on its substantial cash and investment balances. As of January 31, 2024, the company had no outstanding debt[327](index=327&type=chunk) Hypothetical Annual Pre-Tax Income Impact of Interest Rate Changes | Basis Point Change | Net Increase (Decrease) in Income | | :--- | :--- | | Up 100 basis points | $3,522,000 | | Down 100 basis points | ($3,522,000) | - The company is subject to foreign currency translation risk from its subsidiary APC, whose functional currency is the Euro. Translation effects are recognized in accumulated other comprehensive loss[330](index=330&type=chunk) - Commodity price risk on fixed-price contracts is mitigated by securing firm quotes and procuring materials early in a project's lifecycle, rather than through hedging instruments[332](index=332&type=chunk) [Financial Statements and Supplementary Data](index=56&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section contains the company's consolidated financial statements for the fiscal years ended January 31, 2024, 2023, and 2022, along with accompanying notes and auditor reports [Report of Independent Registered Public Accounting Firm](index=63&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Grant Thornton LLP issued an unqualified opinion on Argan, Inc.'s consolidated financial statements and internal control over financial reporting, identifying revenue recognition as a critical audit matter - The auditor, Grant Thornton LLP, issued an unqualified opinion on both the consolidated financial statements and the effectiveness of internal control over financial reporting[370](index=370&type=chunk)[380](index=380&type=chunk) - A critical audit matter was identified concerning revenue recognition for fixed-price contracts, highlighting the challenging, subjective, and complex judgments required by management to estimate total costs and transaction prices[374](index=374&type=chunk)[375](index=375&type=chunk)[376](index=376&type=chunk) [Consolidated Financial Statements](index=67&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements detail the company's performance and financial position, showing revenues of $573.3 million and net income of $32.4 million for Fiscal 2024 Consolidated Statement of Earnings (in thousands) | Metric | FY 2024 (Thousands) | FY 2023 (Thousands) | FY 2022 (Thousands) | | :--- | :--- | :--- | :--- | | Revenues | $573,333 | $455,040 | $509,370 | | Gross Profit | $80,834 | $86,361 | $99,732 | | Income from Operations | $36,458 | $41,669 | $44,510 | | Net Income Attributable to Stockholders | $32,358 | $33,098 | $38,244 | Consolidated Balance Sheet (in thousands) | Metric | Jan 31, 2024 (Thousands) | Jan 31, 2023 (Thousands) | | :--- | :--- | | Total Current Assets | $547,179 | $438,702 | | Total Assets | $598,229 | $489,487 | | Total Current Liabilities | $302,260 | $202,503 | | Total Liabilities | $307,290 | $208,590 | | Total Stockholders' Equity | $290,939 | $280,897 | Consolidated Statement of Cash Flows (in thousands) | Metric | FY 2024 (Thousands) | FY 2023 (Thousands) | | :--- | :--- | | Net cash provided by (used in) operating activities | $116,858 | ($30,061) | | Net cash used in investing activities | ($67,607) | ($63,122) | | Net cash used in financing activities | ($26,050) | ($82,803) | | Net increase (decrease) in cash | $23,085 | ($176,525) | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=56&type=section&id=ITEM%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) The company reports that there have been no changes in or disagreements with its accountants on any matter of accounting principles or practices, or financial statement disclosure - None[335](index=335&type=chunk) [Controls and Procedures](index=56&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and procedures and internal control over financial reporting were effective as of January 31, 2024, a conclusion affirmed by the independent auditor - Based on their evaluation, the CEO and CFO concluded that the company's disclosure controls and procedures were effective as of January 31, 2024[338](index=338&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of January 31, 2024. This assessment was audited by Grant Thornton LLP, which issued an unqualified opinion[341](index=341&type=chunk)[342](index=342&type=chunk) [Other Information](index=57&type=section&id=ITEM%209B.%20OTHER%20INFORMATION) During the fourth quarter ended January 31, 2024, no director or officer adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the fourth quarter of Fiscal 2024[346](index=346&type=chunk) [Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](index=57&type=section&id=ITEM%209C.%20DISCLOSURE%20REGARDING%20FOREIGN%20JURISDICTIONS%20THAT%20PREVENT%20INSPECTIONS) This item is not applicable to the company - Not applicable[347](index=347&type=chunk) Part III Part III of this Annual Report, covering directors, executive officers, corporate governance, executive compensation, security ownership, and certain relationships and transactions, incorporates information by reference from the company's definitive Proxy Statement for the 2024 Annual Meeting of Stockholders, which is to be filed with the SEC within 120 days of the fiscal year-end [Directors, Executive Officers and Corporate Governance](index=58&type=section&id=ITEM%2010.%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) Information required for this item is incorporated by reference from the company's 2024 Proxy Statement - Information required by this item will be incorporated by reference to the 2024 Proxy Statement[349](index=349&type=chunk) [Executive Compensation](index=58&type=section&id=ITEM%2011.%20EXECUTIVE%20COMPENSATION) Information required for this item is incorporated by reference from the company's 2024 Proxy Statement - Information required by this item will be included in the 2024 Proxy Statement and is incorporated herein by reference[350](index=350&type=chunk) [Security Ownership of Certain Beneficial Owners and Management, and Related Stockholder Matters](index=58&type=section&id=ITEM%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%2C%20AND%20RELATED%20STOCKHOLDER%20MATTERS) This item provides information on equity compensation plans and incorporates other security ownership details by reference from the 2024 Proxy Statement Equity Compensation Plan Information as of January 31, 2024 | Plan Category | Securities Issuable under Outstanding Options | Weighted Avg. Exercise Price | Securities Remaining for Future Awards | | :--- | :--- | :--- | :--- | | Approved by Stockholders | 1,364,668 | $44.95 | 543,087 | - Other information required by this item will be included in the 2024 Proxy Statement and is incorporated by reference[351](index=351&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=58&type=section&id=ITEM%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%2C%20AND%20DIRECTOR%20INDEPENDENCE) Information required for this item is incorporated by reference from the company's 2024 Proxy Statement - Information required by this item will be included in the 2024 Proxy Statement and is incorporated herein by reference[353](index=353&type=chunk) [Principal Accountant Fees and Services](index=58&type=section&id=ITEM%2014.%20PRINCIPAL%20ACCOUNTANT%20FEES%20AND%20SERVICES) Information required for this item is incorporated by reference from the company's 2024 Proxy Statement - Information required by this item will be included in the 2024 Proxy Statement and is incorporated herein by reference[354](index=354&type=chunk) Part IV Part IV contains the list of exhibits filed with the Form 10-K and the financial statement schedules, noting that a Form 10-K summary is not applicable [Exhibits and Financial Statements](index=59&type=section&id=ITEM%2015.%20EXHIBITS%20AND%20FINANCIAL%20STATEMENTS) This item lists the financial statements, financial statement schedules, and all exhibits filed as part of the Annual Report on Form 10-K - This section lists all financial statements and exhibits filed with the Form 10-K, including the consent of the independent auditor, CEO/CFO certifications, and various corporate agreements[357](index=357&type=chunk)[358](index=358&type=chunk)[359](index=359&type=chunk) [Form 10-K Summary](index=60&type=section&id=ITEM%2016.%20FORM%2010-K%20SUMMARY) The company has not provided a summary for its Form 10-K - None[361](index=361&type=chunk)

Exhibit 99.1 Argan, Inc. Reports Fourth Quarter and Fiscal Year 2024 Results Declares Regular Quarterly Dividend of $0.30 Per Share April 11, 2024 – ROCKVILLE, MD – Argan, Inc. (NYSE: AGX) ("Argan" or the "Company") today announces financial results for its fourth quarter and fiscal year ended January 31, 2024. The Company will host an investor conference call today, April 11, 2024, at 5:00 p.m. ET. Consolidated Financial Highlights ($ in thousands, except per share data) | | January 31, | | | | --- | --- | ...

pidjoeWhile picking stocks that react well along with the market is not too difficult, what is more difficult in my opinion is building a truly all-weather portfolio. In the hunt for such names, one may have to sacrifice returns in that part of the portfolio, and it can truly test the patience of any investor. Finding stocks that offer both stability and growth potential can be a daunting task indeed. But what if there was a stock that may not only be categorized as "all-weather" but also has such a bri ...

Ron and Patty Thomas Argan, Inc. (NYSE:AGX) primarily generates revenue by providing EPC services to the power generation sector. The company generally posts lumpy revenue and earnings as their business consists of large projects that don't lead to meaningful recurring revenue. Argan must continually replenish its backlog in order to maintain earnings over time. Earnings like this that are not recurring in nature are generally considered lower quality and command less interest from investors. Not only are t ...

Financial Data and Key Metrics Changes - Revenues increased by 39% to $164 million for Q3 fiscal 2024 compared to the same quarter last year, driven by improvements in both power industry services and industrial construction services [7][19] - Net income for Q3 fiscal 2024 was $5.5 million, or $0.40 per diluted share, down from $7.8 million, or $0.56 per diluted share in the same quarter last year [21] - Consolidated gross profit was approximately $19.2 million, representing a gross profit percentage of approximately 11.7%, adversely impacted by a $10.7 million loss related to the Kilroot project [20][21] Business Segment Data and Key Metrics Changes - Power industry services revenues increased by 34% to $121.3 million, accounting for 74% of total revenues, with a pre-tax book income of $11 million [9] - Industrial construction services revenues grew by 74% to contribute 23.5% of total revenues, with a pre-tax book income of $2.9 million [10] - Telecommunications infrastructure services, the smallest segment, contributed 2.5% of total revenues, indicating stable performance despite being the least significant segment [11] Market Data and Key Metrics Changes - The backlog as of October 31, 2023, was $730 million, with $70 million added in miscellaneous backlog during the quarter [7][26] - The company reported a strong pipeline of opportunities, particularly in renewable energy and gas-fired plants, indicating a positive outlook for future projects [15][32] Company Strategy and Development Direction - The company is focused on transitioning to cleaner energy sources, with 82% of its current backlog representing projects that support low carbon emissions [18] - The strategy includes leveraging core competencies to capitalize on market opportunities while maintaining disciplined risk management [32] - The company aims to strengthen its position as a partner in constructing new low and net zero emission power generation facilities [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth potential despite challenges faced in the Kilroot project, emphasizing strong execution across other projects [14][31] - The energy landscape is shifting towards cleaner alternatives, with a significant reduction expected in coal-fired power generation in the U.S. by 2050 [15] - Management highlighted the importance of upcoming months for the Kilroot project, indicating ongoing efforts to mitigate losses and improve project outcomes [36] Other Important Information - The company repurchased approximately 43,000 shares for about $1.7 million, reflecting confidence in its business [8] - A 20% increase in the quarterly cash dividend to $0.30 was announced, demonstrating the company's commitment to returning value to shareholders [9][29] Q&A Session Summary Question: Certainty regarding Kilroot project charges - Management indicated ongoing efforts to mitigate losses and pursue claims, estimating the project is approximately 95% complete with design and construction [36][37] Question: Impact of European market challenges on strategy - Management believes in the strength of the core business despite challenges, with expectations of reduced revenues next fiscal year as they solidify the business [39] Question: Pipeline characterization between renewables and gas plants - The company expects a mix of renewable and gas projects, with strong visibility into the pipeline and additional large projects anticipated [41][42]

Third Quarter Fiscal 2024 PRESENTATION Results Safe Harbor Statement All statements in this presentation that are not historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by words such as "believe," "intend," "expect," "may," "could," "would," "will," "should," "plan," "project," "contemplate," "anticipate," or similar statements. Because these statements reflect the current views of Argan, Inc. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) Delaware 13-1947195 (State or Other Jurisdiction of Incorporation) (I.R.S. Employer Identification No.) One Church Street, Suite 201, Rockville, Maryland 20850 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended October 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT For the Transition Period from to Com ...

Argan, Inc. (NYSE:AGX) Q2 2024 Earnings Conference Call September 1, 2023 5:00 PM ET Company Participants John Nesbett - IMS Investor Relations David Watson - Chief Executive Officer Hank Deily - Chief Financial Officer Conference Call Participants Rob Brown - Lake Street Markets Chris Moore - CJS Securities Operator Good evening, ladies and gentlemen, and welcome to the Argan, Inc. [Technical Difficulty] Conference Call for the Second Quarter of Fiscal 2024, which ended July 31, 2023. This call is being re ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended July 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT For the Transition Period from to Commission File Number 001-31756 Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securit ...