Argan (AGX) Sees Backlog Surge to $3 Billion Amid Power Infrastructure Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Source: Fool
- 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.
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.
