At a glance
Argan Inc is worth $4.95B, about 36 times its fiscal 2026 earnings. Revenue grew 8.1% to $944.6M in fiscal 2026, with 14.6% kept as profit; over 5 years it has grown 19.2% a year. It pays a 0.62% dividend yield, raised every year for at least 3 years, and returned $199.3M to shareholders in dividends and buybacks over FY2022–FY2026. The stock returned +21.2% over the past year with dividends reinvested and +55.8% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 32.9% in the 2020 crash (S&P 500: 33.7%) and 22.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months after the low.
The business in plain English
Argan is an engineering and construction company whose main work is building power plants. It is a holding company, and its wholly owned subsidiaries fall into three segments: Power, Industrial and Teledata. In fiscal 2026, the year ended January 31, 2026, revenue was $944.6 million, with 90.2% from the U.S., 6.9% from Ireland and 2.9% from the U.K.
Power brought in $756.5 million, or 80.1% of revenue. It works as an EPC contractor, short for engineering, procurement and construction: it designs a plant, purchases the equipment and builds it through to final testing, often for a fixed price. Most of this work is one- to four-year contracts for natural gas-fired plants owned by independent power producers, utilities and other large power users, though it has also built solar, wind and biomass projects. In fiscal 2026, three Power customers supplied about half of total revenue. The segment's backlog, the expected revenue from contracted work not yet done, was over $2.7 billion as of January 31, 2026, up from about $1.3 billion a year earlier.
Industrial ($167.6 million, 17.7%) provides on-site construction, planned maintenance shutdowns and piping and pressure-vessel fabrication for plants mostly in the Southeast U.S. Teledata ($20.6 million, 2.2%) builds and repairs power distribution and communications networks for businesses and government agencies, mainly in the Mid-Atlantic.
Price history
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AGX +21.2% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By business segment
| Power Industry Services | $756.5M | 80.1% |
| Industrial Construction Services | $167.6M | 17.7% |
| Telecommunications Infrastructure Services. | $20.6M | 2.2% |
By geography
| United States | $852.2M | 90.2% |
| Republic of Ireland | $65.0M | 6.9% |
| United Kingdom | $27.4M | 2.9% |
Latest results
- In Q2 FY2027 (ended Jul 31, 2026), revenue was $384.0M, up 61.5% from a year earlier, and net income was $53.3M (+51.1%).
- For fiscal 2026, revenue was $944.6M (+8.1% year over year; +19.2% a year from FY2021 to FY2026) with a 14.6% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +19.2% good |
|---|---|
| Operating margin | 14.3% watch |
| Free cash flow margin | 43.5% good |
| Return on equity (FY2026) | 29.8% good |
| Return on assets (FY2026) | 11.6% good |
| Cash and investments | $547.9M (no borrowings found in the filings) good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $392.2M | $23.9M | $174.3M |
| FY2022 | $509.4M | $38.2M | $27.0M |
| FY2023 | $455.0M | $33.1M | $-33.4M |
| FY2024 | $573.3M | $32.4M | $114.1M |
| FY2025 | $874.2M | $85.5M | $161.0M |
| FY2026 | $944.6M | $137.8M | $410.8M |
Valuation snapshot
| Market value | $4.95B |
|---|---|
| P/E ratio | 36.2 |
| Dividend yield | 0.62% |
Rank among 1514 US companies
Market value at each year end
Argan’s market value went from $1.08B at the end of 2016 to $4.95B on Oct 28, 2026, about 4.6 times as much; since the end of 2025 it is up 14%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $4.95B | +13.8% |
| 2025 | $4.35B | +133.7% |
| 2024 | $1.86B | +198.3% |
| 2023 | $623.6M | +24.5% |
| 2022 | $500.7M | -17.6% |
| 2021 | $608.0M | -12.9% |
| 2020 | $698.0M | +11.2% |
| 2019 | $627.5M | +6.5% |
| 2018 | $589.2M | -15.8% |
| 2017 | $699.7M | -35.2% |
| 2016 | $1.08B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| AGX price data to Oct 28, 2026 | +13.1% | +21.2% | +101.4% | +55.8% | +23.3% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +13.1% |
| 2025 | +130.6% |
| 2024 | +198.3% |
| 2023 | +30.3% |
| 2022 | -2.0% |
| 2021 | -11.6% |
| 2020 | +19.2% |
| 2019 | +8.6% |
| 2018 | -14.3% |
| 2017 | -34.3% |
| 2016 | +121.7% |
| 2015 | -1.8% |
| 2014 | +24.8% |
| 2013 | +58.5% |
| 2012 | +22.5% |
| 2011 | +69.9% |
| 2010 | -35.6% |
| 2009 | +32.0% |
| 2008 | -18.4% |
| 2007 | +105.7% |
| 2006 | +224.5% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Gained 20.8% over that stretch · deepest drop along the way 52.8%, back to its old high 45.6 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 19.4% over that stretch · deepest drop along the way 32.9%, back to its old high 3.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 17% over that stretch · deepest drop along the way 22.6%, back to its old high 4.3 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 21 sales ($105.7M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Jun 12, 2026 | William F Jr Griffin Director | sell | $32.2M |
| Jun 18, 2026 | William F Jr Griffin Director | sell | $21.8M |
| Jun 22, 2026 | William F Jr Griffin Director | sell | $15.2M |
| Apr 21, 2026 | Charles Edwin IV Collins CHIEF EXECUTIVE OFFICER, GEMMA | sell | $6.9M |
| Jun 15, 2026 | David Hibbert Watson PRESIDENT AND CEO, Director | sell | $6.5M |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 14.3% | Mar 31, 2026 |
| First Trust Portfolios L.P. | 5.89% | Mar 31, 2026 |
| Vanguard Portfolio Management | 5.65% | Jun 30, 2026 |
| Vanguard Capital Management | 5.09% | Sep 30, 2026 |
| Wellington Management Group LLP | 4.6% | Dec 31, 2024 |
ETFs with the most weight in AGX
| FFTY Innovator IBD 50 ETF | 3.69% |
| PKB Invesco Building & Construction ETF | 3.18% |
| FSGS First Trust SMID Growth Strength ETF | 0.91% |
| VAMO Cambria Value & Momentum ETF | 0.86% |
| SFLO VictoryShares Small Cap Free Cash Flow ETF | 0.73% |
| FYC First Trust Small Cap Growth AlphaDEX Fund | 0.72% |
| IFRA iShares U.S. Infrastructure ETF | 0.68% |
| SEIS SEI Select Small Cap ETF | 0.53% |
What could go wrong
- Heavy dependence on gas-fired power plants. Power work produced 80.1% of revenue in the year ended January 31, 2026, mostly from gas-fired plant contracts. Higher gas prices, weak power demand or a shift toward other energy sources could reduce new orders.
- A few customers supply half of revenue. In the year ended January 31, 2026, three Power customers accounted for about 23%, 16% and 11% of revenue. Losing or delaying one large project could leave a big hole in sales and profits.
- Fixed-price contracts can turn into losses. On fixed-price jobs, where the price is set upfront, profits shrink or turn to losses if labor, materials or delays push costs above estimates. Guarantees on completion dates or plant performance can add further costs.
- Backlog can slip and results are lumpy. Power backlog topped $2.7 billion as of January 31, 2026, but projects can be delayed or canceled. Results also swing from quarter to quarter as a few large jobs start and finish.
- Skilled craft labor is scarce and costly. Argan needs skilled tradespeople at each job site. Aging labor pools and nearby competing projects have pushed wages higher, and shortages could slow work or squeeze profit margins.
- Tariffs, permits and supply chains can delay projects. Tariffs on steel, aluminum and imported equipment could raise costs, and some key equipment has few suppliers. Delays in permits, grid connections or gas pipeline approvals can also stall or stop projects.
Recent events
- Other company announcement
- Quarterly results released
- Other company announcement
- Shareholder vote results; Other company announcement
- Quarterly results released
- Other company announcement
- Quarterly results released
- Other company announcement
- Quarterly results released
- Other company announcement
For income and retirement investors
Argan pays a dividend, but the yield was just 0.62% as of October 28, 2026, so most of any return would come from the share price. The regular dividend rose in each of the three fiscal years to January 31, 2026, reaching $1.75 per share, up from $1.00 four years earlier (about 15% a year). Dividends paid that year used 17.6% of earnings and 5.9% of free cash flow (cash left after capital spending). From fiscal 2022 to 2026, Argan spent $112.5 million on buybacks and $86.8 million on dividends; the share count fell about 11% between September 2021 and August 2026.
The stock fell 52.8% in the 2008 financial crisis, taking about 46 months to recover, then 32.9% in the 2020 COVID crash and 22.6% in the 2022 bear market, recovering in about 3.5 and 4.3 months. Its deepest drop in the 12 months to October 28, 2026, was 58.6%. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Argan make money?
Mostly by designing and building power plants, especially natural gas-fired ones. Argan's Power segment works under engineering, procurement and construction (EPC) contracts, handling design, equipment purchases and construction. It produced $756.5 million, or 80.1%, of the company's $944.6 million revenue in the fiscal year ended January 31, 2026. Industrial construction and maintenance work in the Southeast U.S. added 17.7%, and Teledata, which builds power distribution and communications networks in the Mid-Atlantic, added 2.2%. About 90% of revenue came from the U.S., the rest from Ireland and the U.K.
Does Argan raise its dividend every year?
Not every year, but the regular dividend rose in each of the three fiscal years to January 31, 2026. It held at $1.00 per share in fiscal 2022 and 2023, then climbed to $1.10, $1.35 and $1.75. Fiscal 2021's $3.00 included a special dividend. Dividends paid in fiscal 2026 used 17.6% of earnings, and the yield was 0.62% as of October 28, 2026. The 10-K notes that Argan may not pay cash dividends in the future.
How big is Argan's backlog?
Argan's Power segment backlog was over $2.7 billion as of January 31, 2026, up from about $1.3 billion a year earlier. Backlog is the revenue Argan expects from remaining work on defined projects, usually counted once an owner gives formal notice to proceed. For scale, the whole company's revenue was $944.6 million in that fiscal year. Backlog isn't guaranteed: owners can delay, shrink or cancel projects, and the 10-K warns it may be an uncertain guide to future revenue.
Does Argan have any debt?
Argan's filings show no borrowings, so it may carry no debt at all. It held $547.9 million in cash and investments as of July 31, 2026. Its cash flow is lumpy, though: free cash flow, the cash left after capital spending, was $410.8 million in the fiscal year ended January 31, 2026, well above net income of $137.8 million, but it was negative $33.4 million in fiscal 2023. The 10-K says cash flows vary with the timing of large projects.
Is Argan stock volatile?
Yes. As of October 28, 2026, the shares had fallen 32.4% over three months and 43.9% over six months, yet were still up 21.2% over one year, after gains of 198% in 2024 and 131% in 2025. The deepest drop over those 12 months was 58.6%, and annualized volatility, a gauge of how widely the price swings, was 74.5%. A one-year beta of 1.54 means the stock has tended to move about 1.5 times as much as the overall market.