AGX earnings analysis
What we found in AGX's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Argan delivered a substantial quarterly beat, with revenue of $383.976 million and diluted EPS of $3.76 versus consensus estimates of $297.78 million and $2.67. Growth was led by the Power segment, which generated $301 million of revenue, up 53% year over year, while consolidated gross margin was 19.3%. However, backlog declined by $411 million to $2.518 billion, and the filing provided no quantitative forward guidance. The filing also disclosed a $200 million repurchase authorization and 19,076 quarterly share repurchases, but the provided text does not include complete balance-sheet or cash-flow data.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue materially beat estimates
- Revenue was $383.976 million, exceeding the $297.78 million consensus estimate by $86.196 million, or 28.9%.
- EPS materially beat estimates
- Diluted EPS was $3.76 versus the $2.67 consensus estimate, a $1.09, or 40.8%, beat.
- Power segment drove growth
- The Power segment generated $301 million of revenue, up 53% year over year, making it the principal disclosed growth driver.
- Gross margin remained positive
- Consolidated gross margin was 19.3%, supporting the period's strong earnings performance.
- Expanded share repurchase capacity
- The board increased the share repurchase authorization by $50 million on April 8, 2026, bringing total authorization to $200 million; 19,076 shares were repurchased during the quarter.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Backlog declined
- Project backlog declined by $411 million to $2.518 billion, reducing the contracted revenue cushion despite the quarter's $383.976 million revenue.
- Project execution and cost risk
- The company states that project performance and project costs can affect results; the filing provides no quantitative reserve or cost-overrun amount, limiting visibility into execution risk.
- Capital allocation exposure
- Repurchases reduced remaining authorization to $77.969 million at July 31, 2026, after 19,076 shares were purchased during the quarter, creating capital-allocation exposure if business conditions weaken.
- ValCor acquisition integration risk
- The company issued 877 treasury shares, valued at approximately $0.5 million, as partial consideration for the ValCor acquisition, introducing integration and acquisition-execution risk.
- Market-risk exposure unchanged
- The filing reports no material changes in market-risk exposure during the six months ended July 31, 2026, but does not eliminate exposure to market conditions affecting project economics.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $3.76
- Gross margin
- 19.3%
- Segment
- Power: $301 million of revenue, up 53% year over year
- Segment
- Other segment revenue: not disclosed in the provided filing text
What they said about what is next.
The filing and accompanying earnings disclosure provided no quantitative revenue or EPS guidance; outlook was not provided.
The filing reads about the same as the one before it.
What came before.
- 10-Q · June 4, 2026
- Argan, Inc. reported strong Q1 FY27 results with record revenue of $290.9 million, exceeding estimates of $252.5 million, and an EPS of $3.24 against a forecast of $2.27. The company showed substantial growth in both…
- 10-K · March 26, 2026
- Argan describes a focused EPC strategy anchored in its Power segment (engineering, procurement, construction, commissioning and maintenance) with Industrial and Teledata as complementary businesses. Fiscal 2026 shows a…
- 10-Q · December 4, 2025
- Argan reported Q3 revenues of $251.153 million, down 2.3% year-over-year, while diluted EPS rose to $2.17, up 8.5% from $2.00 and above the $1.99 estimate. Gross margin expanded to 18.7% and operating income increased…
- 10-Q · September 4, 2025
- Argan reported quarterly revenue of $237.7M (up 4.7% YoY) and diluted EPS of $2.50 (up 90.4% YoY). Gross profit improved to $44.3M, lifting gross margin to 18.6% from 13.7% a year earlier; income from operations was…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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