Is Argan (AGX) Leveraging Its Record Backlog and Increased Dividends to Transform Its Earnings Foundation?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 07 2025
0mins
Should l Buy AGX?
Source: Yahoo Finance
Third-Quarter Financial Performance: Argan, Inc. reported US$251.15 million in sales and a net income of US$30.74 million for Q3 fiscal 2026, alongside a record project backlog of US$3.00 billion, driven by new power projects.
Dividend Increase and Investment Appeal: The company raised its quarterly dividend by 33% for the third consecutive year, highlighting its strong cash returns to shareholders, which may attract investors amid its growing backlog.
Risk Factors and Future Projections: While Argan's backlog supports near-term revenue growth, its reliance on a few large, complex projects poses execution risks that could impact margins and earnings.
Valuation and Market Sentiment: Analysts project a fair value of US$295.75 for Argan, indicating a potential downside from its current price, with varying opinions on its future value reflecting concerns over project concentration risks.
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Analyst Views on AGX
Wall Street analysts forecast AGX stock price to fall
2 Analyst Rating
0 Buy
2 Hold
0 Sell
Hold
Current: 413.650
Low
325.00
Averages
347.50
High
370.00
Current: 413.650
Low
325.00
Averages
347.50
High
370.00
About AGX
Argan, Inc. is a holding company. The Company is a construction firm that conducts operations through its subsidiaries, Gemma Power Systems, LLC and affiliates (GPS), Atlantic Projects Company Limited and affiliates (APC), The Roberts Company, Inc. (TRC), and Southern Maryland Cable, Inc. (SMC). Through GPS and APC, its power industry services, it offers a suite of engineering, procurement, construction, commissioning, maintenance, project development and technical consulting services to the power generation market, including the renewable energy sector. Through TRC, the industrial construction services provide field services and project management that support new plant construction and additions, maintenance turnarounds, shutdowns and emergency mobilizations for industrial plants. Through SMC, its telecommunications infrastructure services provide project management, construction, installation and maintenance services to commercial, local government and federal government customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Record Backlog: The company reported a record backlog of $3 billion, highlighting robust demand in the power and industrial construction sectors, which further solidifies its market position and lays a foundation for future growth.
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- Market Value Growth: The quarter-end value of Solaris increased by $11.62 million due to both the share addition and stock price movement, reflecting robust performance and market recognition in the energy infrastructure sector.
- Financial Performance: Solaris reported $167 million in third-quarter revenue, a 12% sequential increase, with net income of $25 million, showcasing strong growth potential in energy infrastructure tied to electrification and data centers.
- Future Outlook: Management raised fourth-quarter Adjusted EBITDA guidance to $65 million to $70 million and initiated first-quarter 2026 guidance, demonstrating confidence in future growth and an aggressive capital expenditure plan.
See More
Argan Inc. Benefits from AI-Driven Energy Projects
- Significant Stock Surge: Argan Inc. has seen its stock price increase by 177% over the past year and an astonishing 940% over the last three years, indicating strong performance in the rapidly growing AI market that has captured investor interest.
- Surging Demand: The demand for Argan's engineering, construction, and related services has surged due to the rapid construction of data centers, with revenue for the first nine months of 2025 rising 6.4% year-over-year to approximately $682 million, alongside a record backlog of $3 billion, highlighting future growth potential.
- Investor Attention: Although Argan's forward P/E ratio is about 43, double its three-year average, investors should keep an eye on its role in the growth of data centers; if returns on investments are substantial, Argan will continue to benefit from tech companies' needs.
- Market Competition Insight: Despite benefiting from AI infrastructure development, Argan was not included in the current best stock picks by The Motley Fool Stock Advisor analyst team, suggesting that investors should exercise caution and consider other potential high-return stocks.
See More
Ranger Investment Management Increases Solaris Shares
- Share Increase: Ranger Investment Management acquired 197,073 shares of Solaris in Q4 2026, with an estimated trade value of $9.53 million, reflecting the firm's confidence in Solaris's growth potential.
- Position Value Growth: The quarter-end value of Solaris's position rose by $11.62 million, indicating not only an increase in shares but also a positive impact from stock price appreciation, further solidifying Ranger's investment strategy.
- Strong Financial Performance: Solaris reported $167 million in revenue for Q3, a 12% sequential increase, with a net income of $25 million, showcasing its robust performance and growth potential in the energy infrastructure market.
- Optimistic Future Outlook: Management raised fourth-quarter Adjusted EBITDA guidance to $65 million to $70 million and initiated first-quarter 2026 guidance of $70 million to $75 million, indicating strong confidence in future performance.
See More
Argan Benefits from AI Infrastructure Spending Surge
- Stock Surge: Argan (AGX) shares soared 16.4% this week, reflecting investor confidence in its role within the rapidly growing AI infrastructure sector, indicating a bullish market outlook for its future performance.
- Strong Revenue Growth: For the first nine months of 2025, Argan reported a 6.4% year-over-year revenue increase to approximately $682 million, demonstrating its resilience and adaptability in the face of surging demand for data center construction.
- Record Backlog: The company reported a record backlog of $3 billion, highlighting robust demand in the power and industrial construction sectors, which further solidifies its market position and lays a foundation for future growth.
- Investor Focus on Outlook: Despite Argan's forward P/E ratio being around 43, double its three-year average, investors should remain attentive to its potential returns from data center growth, suggesting possible sustained growth opportunities ahead.
See More
Argan (AGX) Sees Backlog Surge to $3 Billion Amid Power Infrastructure Demand
- Record Backlog: Argan's backlog surged to $3 billion in Q3 FY2026, a significant increase from $1.4 billion just two quarters prior, indicating robust demand for power infrastructure projects.
- Strong Financial Position: With no debt and nearly $727 million in cash and equivalents, Argan's solid balance sheet provides a strong foundation for executing its upcoming projects over the next decade.
- Improving Profitability: Despite a revenue decline in the latest quarter, Argan's gross margins, net income, earnings per share, and EBITDA are all trending upward, reflecting the company's ability to enhance profitability even in challenging conditions, boosting investor confidence.
- Strong Stock Performance: Argan's stock has risen 118% over the past 12 months, and while its P/E ratio has reached 45, the high valuation is deemed justified given the significant power needs in the U.S. and abroad, highlighting the company's growth potential.
See More
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- Active Options Trading: Argan Inc's options volume today reached 1,601 contracts, equivalent to approximately 160,100 shares, indicating a trading activity level of 60.1% of its average daily volume over the past month, which may reflect market interest in its future performance.
- High Strike Call Options: The $370 strike call option has shown particularly high volume today, with 109 contracts traded, representing about 10,900 shares, suggesting that investors are optimistic about the stock's potential for future gains.
- Better Home & Finance Options Activity: In parallel, Better Home & Finance Holding Co saw options trading volume of 2,762 contracts, equivalent to approximately 276,200 shares, indicating a trading activity level of 59.1% of its average daily volume over the past month, reflecting market interest in the company.
- Bullish Options Trend: In BETR's trading, the $90 strike call option stands out with a volume of 1,202 contracts traded today, representing about 120,200 shares, demonstrating investor confidence in its future performance.
See More
