Executive Summary
Argan Inc reported QQ3 2025 revenue of $257.0 million, representing a 56.95% year-over-year increase and a 13.21% sequential rise. The quarter delivered solid profitability with gross profit of $44.33 million and a gross margin of 17.25%, supported by operating leverage across its Power Industry Services and Industrial Fabrication and Field Services segments. Operating income reached $30.33 million (11.80% margin), while net income was $28.01 million and diluted EPS stood at $2.00–$2.07, reflecting meaningful operating momentum.
The company generated strong cash flow, with net cash provided by operating activities of $31.78 million and free cash flow of $29.23 million. Cash and cash equivalents totaled $175.35 million at period end, and Argan reported a net cash position (net debt of -$172.70 million), underscoring liquidity headroom to fund ongoing capex, potential strategic initiatives, or capital returns. The balance sheet remains solid: total assets of $768.86 million, total liabilities $440.16 million, and stockholders’ equity of $328.70 million. While the near-term liquidity is robust, working capital dynamics showed sizable outflows from receivables and other working capital components, signaling typical project-cycle volatility inherent in engineering and construction services.
Looking ahead, management did not publish explicit forward guidance in the provided data. However, the results, healthy earnings trajectory, and a strong balance sheet position Argan to benefit from ongoing energy transition investments (renewables, grid modernization, and related infrastructure) and continued demand for industrial fabrication and field services. Investors should monitor project ramp cycles, receivables collection timing, and any shifts in capex funding within the Power Industry Services pipeline as potential accelerants or headwinds to quarterly cadence.
Key Performance Indicators
QoQ: 42.51% | YoY:130.45%
QoQ: 62.40% | YoY:285.90%
QoQ: 53.92% | YoY:412.63%
QoQ: 52.21% | YoY:404.88%
Key Insights
Revenue: $257.008 million in QQ3 2025; YoY +56.95%; QoQ +13.21%
Gross Profit: $44.327 million; Gross Margin 17.25% (0.1725)
EBITDA: $30.332 million; EBITDA Margin 11.80%
Operating Income: $30.332 million; Operating Margin 11.80%
Total Other Income/Expenses: $6.646 million
Income Before Tax: $36.978 million; Pretax Margin 14.39%
Income Tax Expense: $8.968 million
Net Income: $28.01 million; Net Margin 10.90%
EPS (GAAP): $2.07; EPS (diluted): $2.00; Weighted Avg Shs Out: 13.53 million; Diluted: 14...
Financial Highlights
Revenue: $257.008 million in QQ3 2025; YoY +56.95%; QoQ +13.21%
Gross Profit: $44.327 million; Gross Margin 17.25% (0.1725)
EBITDA: $30.332 million; EBITDA Margin 11.80%
Operating Income: $30.332 million; Operating Margin 11.80%
Total Other Income/Expenses: $6.646 million
Income Before Tax: $36.978 million; Pretax Margin 14.39%
Income Tax Expense: $8.968 million
Net Income: $28.01 million; Net Margin 10.90%
EPS (GAAP): $2.07; EPS (diluted): $2.00; Weighted Avg Shs Out: 13.53 million; Diluted: 14.03 million
Cash Flow: Net cash from operating activities $31.78 million; Free Cash Flow $29.23 million
Cash Position: Cash at end of period $175.35 million; Net cash position (net debt) -$172.70 million
Balance Sheet: Total assets $768.86 million; Total liabilities $440.16 million; Total stockholders’ equity $328.70 million
Liquidity/Leverage: Current ratio 1.64; Quick ratio 1.64; Cash ratio 0.40; Debt to equity 0.008; Debt ratio 0.0034
Valuation (as of QQ3 2025 data): P/E ~15.95x; P/B ~5.43x; P/S ~6.95x; Dividend yield ~0.29%
Key note: Results reflect favorable project mix, ongoing capital expenditure in renewables, and solid cash generation, but also highlight working capital volatility typical of EPC/contracting cycles.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
257.01M |
56.95% |
13.21% |
| Gross Profit |
44.33M |
130.45% |
42.51% |
| Operating Income |
30.33M |
285.90% |
62.40% |
| Net Income |
28.01M |
412.63% |
53.92% |
| EPS |
2.07 |
404.88% |
52.21% |
Key Financial Ratios
operatingProfitMargin
11.8%
operatingCashFlowPerShare
$2.35
freeCashFlowPerShare
$2.16
dividendPayoutRatio
18.5%
Management Commentary
Note: The earnings transcript data provided for QQ3 2025 is not available in the input. No management quotes from a QQ3 2025 earnings call were supplied. As such, transcript-based themes, detail on guidance, and qualitative remarks from executives could not be incorporated directly. The synthesis below relies on disclosed financials and segment commentary embedded in the quarterly results.
Forward Guidance
No formal forward-looking guidance was published in the provided materials. Based on the quarterly results and industry dynamics, Argan is positioned to benefit from sustained activity in renewables and industrial infrastructure. Key factors to watch for future guidance include: (1) project awards and backlog development in Power Industry Services (renewables, biomass, wind, solar), (2) progression and margin realization in Industrial Fabrication and Field Services, (3) working capital cadence as large projects bill and collect, (4) capital deployment decisions given a strong net cash position, and (5) potential capital allocation actions (dividends, buybacks, or selective acquisitions). Our assessment is that revenue growth could remain solid into late-2025/into 2026 if project activity remains robust, with FCF generation supported by the current net cash position. Investors should monitor quarterly DSO trends, receivables aging, and changes in capex intensity across segments as early indicators of revenue trajectory and margin opportunities.