Argan (AGX) Secures $3 Billion Backlog, Stock Doubles in Value
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 22 2025
0mins
Source: Fool
- Backlog Growth: Argan currently boasts a $3 billion backlog, which is expected to drive future business growth and enhance its market position in the power industry.
- Outstanding Stock Performance: The company's stock has more than doubled this year, achieving an 868% return, significantly outperforming the S&P 500's 16% increase, reflecting strong market performance and investor confidence.
- Significant Dividend Growth: Argan raised its quarterly dividend from $0.375 to $0.50 per share, marking a 33% increase, while maintaining a payout ratio below 20%, indicating strong financial health and potential for further dividend increases.
- Optimistic Financial Outlook: Despite a 2.3% year-over-year revenue decline in Q3 of fiscal 2026, Argan remains optimistic about future profitability, expecting to benefit from its substantial backlog and ongoing project advancements.
Analyst Views on AGX
Wall Street analysts forecast AGX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AGX is 365.25 USD with a low forecast of 325.00 USD and a high forecast of 397.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
2 Buy
2 Hold
0 Sell
Moderate Buy
Current: 353.500
Low
325.00
Averages
365.25
High
397.00
Current: 353.500
Low
325.00
Averages
365.25
High
397.00
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.
