Argan’s (AGX) Power Boom Comes With A Margin Catch

Argan (AGX) stock fell 8% after Piper Sandler analyst Dimple Gosai initiated coverage with an underweight rating and a $273 price target, citing capacity limits and a potential peak in project awards.

Argan (AGX) reported Q2 2027 revenue of $384.0M, up 61.5%, with net income of $53.3M ($3.76 per diluted share). Power segment revenue grew 53% YoY to $301M, while Industrial segment revenue rose 111% to $76M. Consolidated backlog decreased to $2.5B. The company plans to complete a new fabrication facility in North Carolina by Q3 2027.

Argan, Inc. (AGX) reported 56.5% revenue growth to $674.9M and adjusted EBITDA growth to $126.5M in H1 2027. The company expects 45.4% sales and 38% earnings growth for fiscal 2027, with a $2.5B backlog. However, margins have declined, and valuation remains high. Management highlights multi-year visibility but warns of execution risks.

Argan, Inc. (AGX) shares fell 28.1% in a month, despite strong Q2 FY2027 results with 61.5% revenue growth to $384M and 50.4% EPS growth to $3.76. Backlog declined to $2.5B, and margins fell to 19.3%. Management cited project timing and mix as factors. AGX trades at 33.1X earnings, above industry peers.

Argan, Inc. (AGX) reported record Q2 2027 revenue of $384M, net income of $53M, and adjusted EBITDA of $70M. Freedom Broker upgraded AGX to Buy with a $700 price target, citing strong project execution and a $2.5B backlog. However, Industrial segment margins fell to 7.3%, and hedge fund interest slightly decreased.

Argan (NYSE: AGX) reported Q2 earnings of $3.76 per share on $384M in sales, beating estimates. Sales grew 61.5% YoY, with power segment up 53%. No guidance was provided. Analysts expect $1.3B in sales and $12.09 EPS for the year. AGX stock rose 3.3% on the news.