Argan(AGX) - 2025 Q3 - Quarterly Report

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$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$257.0 million compared to $163.8 million in the same period in 2023[164] - Power industry services revenues increased by 74.9$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$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$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$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$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$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$269.92/MW-day, a significant increase from the previous auction's $28.92/MW-day[152]