Argan Inc. surged 8% in early trading after reporting a second-quarter profit and revenue that exceeded analyst expectations.
The Arlington, Virginia-based company posted adjusted earnings per share of $3.76, well above the $2.66 consensus estimate. Revenue totaled a record $384 million, up 61.5% from $237.7 million in the same period last year and surpassing the $299.4 million forecast.
Net income reached a record $53.3 million, compared with $35.3 million a year earlier. Adjusted EBITDA also set a new high at $70 million. Gross profit rose to $74.2 million, representing 19.3% of revenue, an improvement from 18.6% in the prior-year quarter.
The Power segment led performance, with revenue climbing 53% year-over-year to $301 million and a gross margin of 22%. The company attributed the gains to strong execution and continued ramp-up on multiple construction contracts.
Argan maintained a debt-free balance sheet, with cash, cash equivalents and investments totaling $1.03 billion as of July 31, up from $895 million at the end of January. Net liquidity stood at $440.4 million, while the project backlog was approximately $2.5 billion, down from $2.9 billion in late January.
Chief Executive David Watson highlighted the record financial results in a statement, noting strong revenue growth and margin expansion across the business.
