Argan Inc delivered a highly solid QQ4 2025, capping a year of rapid growth and strong execution across its three reportable segments. Q4 revenue rose 41% year over year to $232.5 million, with gross margin expanding to 20.5% as the company benefited from a favorable project mix and closeouts of select jobs. For the full year, revenue increased 52% to $874.2 million and EBITDA reached $113.5 million, supported by materially improved gross margins (16.1% vs 14.1% in FY2024) and a return to profitability across segments. The company exited the year with a dominant balance sheet: cash and investments of $525 million, net liquidity of $301 million, and no debt, enabling flexibility for growth investments and shareholder returns (dividend raised to $1.50 annual run rate; Cumulative buybacks of ~$102.5 million since 2021).
The project backlog stood at approximately $1.4 billion at January 31, 2025, up 80% YoY, reflecting a robust pipeline and execution capacity to land large-scale gas-fired and renewable projects. Notably, Argan added ~1 gigawatt of power projects to backlog in Q4, including a 700 MW US combined-cycle natural gas plant and a 300 MW biofuel plant in Ireland. The mix shift toward fixed-price contracts and increased U.S.-based work supports higher-margin opportunities going forward. Management emphasizes a multi-year runway driven by an energy grid under strain and the need for reliable power, with natural gas and renewables forming the core growth engine. Investor relevance is heightened by the upcoming Investor Day on April 8, 2025 and the company’s disciplined capital allocation, including ongoing share repurchases and dividend increases.