Reports Record Backlog of $3.0 Billion

Argan, Inc. (NYSE: AGX) (“Argan” or the “Company”) today announces financial results for its third quarter of fiscal year 2026 ended October 31, 2025. The Company will host an investor conference call today, December 4, 2025, at 5:00 p.m. ET.

David Watson, President and Chief Executive Officer of Argan, commented, “We delivered solid third quarter results highlighted by our record backlog of $3.0 billion, which as expected, reflects the addition of two new gas-fired projects in the quarter – the 1.4 GW CPV Basin Ranch Energy Center in Ward County, Texas, and a 860 MW facility, also located in Texas. With these new projects added, we are currently under contract for the construction of approximately 6 GW of power generating assets.

“There is significant urgency around the construction of new, combined-cycle natural gas projects as older facilities reach the end of their useful life and new resources are needed to meet the growing demand for reliable energy to power the ‘electrification of everything’. Moving forward, we expect to periodically add projects to our backlog as power plant construction projects underway make progress and are completed. With our visibility today, we are optimistic about our ability to drive revenue growth and enhanced profitability for many years to come. As we move through the close of fiscal 2026, we remain committed to our disciplined approach to capitalizing on the strong demand we are seeing for our services, with a focus on pursuing the right projects with the right partners in the right geographies.”

Third Quarter Results

Consolidated revenues for the quarter ended October 31, 2025, were $251.2 million, a decrease of $5.9 million, or 2.3%, from consolidated revenues of $257.0 million reported for the comparable prior-year quarter. The decrease in revenues relative to the prior-year quarter reflects the timing of work performed and project mix, as recently awarded contracts are progressing through early construction stages, while the prior-year period included peak execution activity on several large projects.

For the quarter ended October 31, 2025, Argan’s consolidated gross profit was $46.9 million, or 18.7% of consolidated revenues. Consolidated gross profit for the quarter ended October 31, 2024 was $44.3 million, or 17.2% of consolidated revenues. The increase from the comparable prior-year quarter is primarily due to improved gross profit margins for the Power Industry Services and Industrial Construction Services segments.

Selling, general and administrative expenses were $14.3 million and $14.0 million for the three months ended October 31, 2025 and 2024, respectively, and represented 5.7% and 5.4% of corresponding consolidated revenues, respectively.

Other income, net, for the three months ended October 31, 2025 was $7.1 million, which primarily reflected investment income earned during the period.

For the quarter ended October 31, 2025, Argan achieved net income of $30.7 million, or $2.17 per diluted share, compared to $28.0 million, or $2.00 per diluted share, for last year’s third quarter. EBITDA for the quarter ended October 31, 2025 increased to $40.3 million compared to $37.5 million for the same quarter of last year.

Argan continues to generate significant cash flow and increased its total balance of cash, cash equivalents and investments during the quarter. The total balances were $726.8 million and $525.1 million as of October 31, 2025 and January 31, 2025, respectively. Balance sheet net liquidity was $377.3 million at October 31, 2025 and $301.4 million at January 31, 2025; furthermore, the Company had no debt.

First Nine Months Results

Consolidated revenues for the nine months ended October 31, 2025 were $682.6 million, an increase of $40.9 million, or 6.4%, from consolidated revenues of $641.7 million reported for the comparable prior year period. For the nine months ended October 31, 2025, consolidated gross profit increased to approximately $128.1 million, or 18.8% of consolidated revenues, compared to consolidated gross profit of $93.4 million, or 14.6% of consolidated revenues, reported for the nine months ended October 31, 2024.

For the nine months ended October 31, 2025, Argan achieved net income of $88.6 million, or $6.27 per diluted share, versus net income of $54.1 million, or $3.91 per diluted share, for last year’s comparable period. EBITDA for the nine months ended October 31, 2025 increased to $106.8 million compared to $74.2 million in the same period of last year.

As of October 31, 2025, consolidated project backlog was approximately $3.0 billion, as compared to approximately $1.4 billion at January 31, 2025.

Conference Call and Webcast

Argan will host a conference call and webcast for investors today, December 4, 2025, at 5:00 p.m. ET.

Domestic stockholders and interested parties may participate in the conference call by dialing (888) 506-0062 and international participants should dial (973) 528-0011; all callers shall use access code: 510701.

The call and the accompanying slide deck will also be webcast at: https://www.webcaster5.com/Webcast/Page/2961/53159

The conference call and slide deck may also be accessed via the Investor Center section of the Company’s website at https://arganinc.com/investor-center. Please allow extra time prior to the call to visit the site.

A replay of the teleconference will be available until December 18, 2025, and can be accessed by dialing 877-481-4010 (domestic) or 919-882-2331 (international). The replay access code is 53159. A replay of the webcast can be accessed until December 4, 2026.

About Argan

Argan’s primary business is providing a full range of construction and related services to the power industry. Argan’s service offerings focus on the engineering, procurement and construction of natural gas-fired power plants and renewable energy facilities, along with related commissioning, maintenance, project development and technical consulting services, through its Gemma Power Systems and Atlantic Projects Company operations. Argan also owns The Roberts Company, which is a fully integrated industrial construction, fabrication and plant services company, and SMC Infrastructure Solutions, which provides telecommunications infrastructure services.

Non-GAAP Financial Measures

The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”). Within this press release, the Company makes reference to earnings before interest, taxes, depreciation and amortization (“EBITDA”), a non-GAAP financial measure. The Company believes that the non-GAAP financial measure described in this press release is important to management and investors because the measure supplements the understanding of Argan’s ongoing operating results, excluding the effects of capital structure, depreciation, amortization, and income tax rates. The non-GAAP financial measure referred to above should be considered in conjunction with, and not as a substitute for, the GAAP financial information presented in this press release. Financial tables at the end of this press release provide a reconciliation of the non-GAAP financial measures to the comparable GAAP measures.

Safe Harbor Statement

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Reference is hereby made to the cautionary statements made by the Company with respect to risk factors set forth in its most recent reports on Form 10-K, Forms 10-Q and other SEC filings. The Company’s future financial performance is subject to risks and uncertainties including, but not limited to, the successful addition of new contracts to project backlog, the receipt of corresponding notices to proceed with contract activities, and the Company’s ability to successfully complete the projects that it obtains. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to the risk factors highlighted above and described regularly in the Company’s SEC filings.

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