Argan(AGX) - 2026 Q1 - Quarterly Report

Revenue Performance - For the three months ended April 30, 2025, consolidated revenues increased by 22.8% to $193.7 million compared to$157.7 million for the same period in 2024[93]. - The power industry services segment generated revenues of $160.4 million, a 45.4$110.3 million in the prior year, representing approximately 82.8% of consolidated revenues[94]. - The industrial construction services segment saw a revenue decrease of 33.2%, down to $29.2 million from$43.7 million year-over-year[96]. Profitability - Gross profit for the three months ended April 30, 2025, was approximately $36.9 million, with a gross profit margin of 19.0$22.6 million, a 186.1% increase compared to $7.9 million in the same period of 2024[93]. - Selling, General and Administrative Expenses for Q1 2025 were$12.5 million, representing 6.5% of consolidated revenues, compared to $11.4 million and 7.2$5.4 million from $4.8 million in Q1 2024, attributed to higher investment balances and increased earnings from cash equivalents[101]. - Net income for Q1 2025 was$22.6 million, significantly up from $7.9 million in Q1 2024, leading to an EBITDA of$30.3 million compared to $11.9 million in the prior year[126]. Project Backlog - The project backlog as of April 30, 2025, was$1.9 billion, an increase from $1.4 billion on January 31, 2025[80]. - The industrial construction services segment's project backlog increased to approximately$91.4 million from $53.2 million on January 31, 2025[92]. Cash and Liquidity - Cash and cash equivalents increased to$189.3 million as of April 30, 2025, up by $44.0 million from$145.3 million at January 31, 2025[104]. - Net cash provided by operating activities for Q1 2025 was $35.3 million, with a notable decrease in accounts receivable by$69.3 million[105]. - The company maintained net liquidity of $315.1 million as of April 30, 2025, an increase of$13.7 million from January 31, 2025[110]. - The company has $11.5 million remaining in cash investment commitments related to a solar fund, expected to be fulfilled in Fiscal 2026[120]. Tax and Obligations - The effective income tax rate for Q1 2025 was 24.3$0.6 billion, with additional bonds covering other risks totaling $45.7 million[118]. Future Projects - The company received a notice to proceed for a 1.2 GW combined-cycle natural gas-fired power plant in Texas, with construction expected to begin in summer 2026[85]. - The company entered into an EPC services contract for a 300 MW biofuel power plant in Ireland, with construction commencing in Fiscal 2026[86]. - The company is committed to expanding its capabilities in natural gas-fired power plants and renewable energy projects across the U.S., Ireland, and the U.K.[83]. Financing Activities - The company funded a loan of$5.0 million for the development phase of a natural gas-fired power plant, which remains outstanding[122].