Why Argan Stock Ascended Today
Key Points
Argan's earnings surged in the fourth quarter.
With a $2.9 billion project backlog, the construction leader has plenty of growth still ahead.
- 10 stocks we like better than Argan ›
Shares of Argan (NYSE: AGX) spiked on Friday after the engineering company reported stronger-than-expected quarterly profits.
Image source: Getty Images.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
AI-fueled gains
With nearly two decades of experience in power plant construction, Argan is well positioned to profit from soaring demand for cost-effective energy infrastructure required by artificial intelligence (AI) factories.
Argan's revenue rose 13% year over year to $262 million in its fiscal 2026 fourth quarter, which ended on Jan. 31.
Argan's profit margins climbed alongside its revenue as projects like the Trumbull Energy Center in Ohio neared completion. Its gross margin increased to 25% from 20.5% in the prior-year quarter.
The construction company's net income, in turn, jumped 57% to $49 million, or $3.47 per share. That was well above Wall Street's estimates, which had called for per-share profits of $1.98.
Multiple growth drivers
Argan's project backlog rose to $2.9 billion as of Jan. 31, reflecting strong and rapidly growing demand for its services.
"We are seeing a robust pipeline of opportunities to build new gas-fired power plants capable of delivering reliable, high-quality power on a 24/7 basis," CEO David Watson said.
Importantly, Argan is well funded, with $895 million in cash and investments and no debt. That should enable Argan to capitalize on its numerous expansion prospects.
"The rapid growth of AI and data centers, the electrification of everything, the replacement of aging power facilities, and a prolonged period of underinvestment in power infrastructure are placing increasing pressure on our power grids," Watson said.
Should you buy stock in Argan right now?
Before you buy stock in Argan, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Argan wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $503,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,049,793!*
Now, it’s worth noting Stock Advisor’s total average return is 898% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 27, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
