Argan Inc 10-Q for FY2027 Q2

Argan Inc (AGX)

10-Q 2026-09-02 For: 2026-07-31

Added on September 02, 2026

About this 10-Q

Argan Inc filed this 10-Q on September 2, 2026, covering the quarter ended July 31, 2026 (FY2027 Q2).

Headline figures

Quarter ended July 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $383.98M; up 61.5% from $237.74M a year earlier
Net income: $53.3M; up 51.1% from net income of $35.28M a year earlier
Diluted EPS: $3.76; up 50.4% from $2.50 a year earlier

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Delaware		13-1947195
(State or Other Jurisdiction of Incorporation)		(I.R.S. Employer Identification No.)


Title of Each Class		Trading Symbol(s)		Name of Each Exchange on Which Registered
Common Stock, $0.15 par value		AGX		New York Stock Exchange


	Three Months Ended				Six Months Ended
	July 31,				July 31,
	2026		2025		2026		2025
REVENUES	$	383,976	$	237,743	$	674,930	$	431,403
Cost of revenues		309,758		193,476		539,598		350,273
GROSS PROFIT		74,218		44,267		135,332		81,130
Selling, general and administrative expenses		17,413		14,212		33,132		26,733
INCOME FROM OPERATIONS		56,805		30,055		102,200		54,397
Other income, net		10,083		5,581		18,457		11,025
INCOME BEFORE INCOME TAXES		66,888		35,636		120,657		65,422
Provision for income taxes		13,586		361		21,292		7,597
NET INCOME		53,302		35,275		99,365		57,825

OTHER COMPREHENSIVE INCOME, NET OF TAXES
Foreign currency translation adjustments		(267)		(251)		(808)		3,370
Net unrealized (losses) gains on available-for-sale securities		(4,550)		(1,082)		(7,209)		1,598
COMPREHENSIVE INCOME	$	48,485	$	33,942	$	91,348	$	62,793

EARNINGS PER SHARE
Basic	$	3.80	$	2.57	$	7.10	$	4.23
Diluted	$	3.76	$	2.50	$	7.01	$	4.09

WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		14,028		13,731		13,994		13,680
Diluted		14,164		14,131		14,181		14,122

CASH DIVIDENDS PER SHARE	$	0.500	$	0.375	$	1.000	$	0.750


	July 31,		January 31,
	2026		2026
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	364,481	$	339,481
Investments		663,965		555,500
Accounts receivable, net		180,356		133,677
Contract assets		35,713		43,397
Other current assets		73,955		60,202
TOTAL CURRENT ASSETS		1,318,470		1,132,257
Property, plant and equipment, net		22,797		16,596
Goodwill		30,670		28,033
Intangible assets, net		6,030		1,450
Right-of-use and other assets		23,003		8,018
TOTAL ASSETS	$	1,400,970	$	1,186,354

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	115,212	$	107,540
Accrued expenses		135,878		89,748
Contract liabilities		627,020		513,969
TOTAL CURRENT LIABILITIES		878,110		711,257
Deferred taxes, net		3,061		6,555
Noncurrent liabilities		12,960		6,280
TOTAL LIABILITIES		894,131		724,092

COMMITMENTS AND CONTINGENCIES (see Notes 8 and 9)

STOCKHOLDERS’ EQUITY
Preferred stock, par value $0.10 per share – 500,000 shares authorized; no shares issued and outstanding		—		—
Common stock, par value $0.15 per share – 30,000,000 shares authorized; 15,828,289 shares issued; 14,032,792 and 13,950,712 shares outstanding at July 31, 2026 and January 31, 2026, respectively		2,374		2,374
Additional paid-in capital		165,039		167,234
Retained earnings		491,539		406,197
Treasury stock, at cost – 1,795,497 and 1,877,577 shares at July 31, 2026 and January 31, 2026, respectively		(144,914)		(114,361)
Accumulated other comprehensive (loss) income		(7,199)		818
TOTAL STOCKHOLDERS’ EQUITY		506,839		462,262
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,400,970	$	1,186,354


		Common Stock					Additional									Accumulated Other
		Outstanding		Par			Paid-in			Retained			Treasury			Comprehensive			Total
		Shares		Value			Capital			Earnings			Stock			Income (Loss)			Stockholders' Equity
Balances, February 1, 2026		13,950,712		$	2,374		$	167,234		$	406,197		$	(114,361)		$	818		$	462,262
Net income		—			—			—			46,063			—			—			46,063
Foreign currency translation loss		—			—			—			—			—			(541)			(541)
Net unrealized losses on available-for-sale securities		—			—			—			—			—			(2,659)			(2,659)
Stock compensation expense		—			—			2,036			—			—			—			2,036
Stock option exercises and restricted stock unit settlements, net		76,165			—			(6,037)			—			(17,653)			—			(23,690)
Common stock repurchases		(6,450)			—			—			—			(2,955)			—			(2,955)
Cash dividends		—			—			—			(7,005)			—			—			(7,005)
Balances, April 30, 2026		14,020,427			2,374			163,233			445,255			(134,969)			(2,382)			473,511
Net income		—			—			—			53,302			—			—			53,302
Foreign currency translation loss		—			—			—			—			—			(267)			(267)
Net unrealized losses on available-for-sale securities		—			—			—			—			—			(4,550)			(4,550)
Stock compensation expense		—			—			2,422			—			—			—			2,422
Stock option exercises and restricted stock unit settlements, net		22,755			—			(1,045)			—			(3,322)			—			(4,367)
Common stock repurchases		(11,267)			—			—			—			(6,694)			—			(6,694)
Cash dividends		—			—			—			(7,018)			—			—			(7,018)
Issuance of treasury stock for acquisition (see Note 14)		877			—			429			—			71			—			500
Balances, July 31, 2026		14,032,792		$	2,374		$	165,039		$	491,539		$	(144,914)		$	(7,199)		$	506,839

Balances, February 1, 2025		13,634,214		$	2,374		$	168,966		$	292,698		$	(105,643)		$	(6,538)		$	351,857
Net income		—			—			—			22,550			—			—			22,550
Foreign currency translation gain		—			—			—			—			—			3,621			3,621
Net unrealized gains on available-for-sale securities		—			—			—			—			—			2,680			2,680
Stock compensation expense		—			—			1,188			—			—			—			1,188
Stock option exercises and restricted stock unit settlements, net		59,472			—			(4,556)			—			(1,526)			—			(6,082)
Common stock repurchases		(55,117)			—			—			—			(6,849)			—			(6,849)
Cash dividends		—			—			—			(5,070)			—			—			(5,070)
Balances, April 30, 2025		13,638,569			2,374			165,598			310,178			(114,018)			(237)			363,895
Net income		—			—			—			35,275			—			—			35,275
Foreign currency translation loss		—			—			—			—			—			(251)			(251)
Net unrealized losses on available-for-sale securities		—			—			—			—			—			(1,082)			(1,082)
Stock compensation expense		—			—			2,265			—			—			—			2,265
Stock option exercises and restricted stock unit settlements, net		174,006			—			(1,247)			—			(303)			—			(1,550)
Common stock repurchases		(1,000)			—			—			—			(199)			—			(199)
Cash dividends		—			—			—			(5,177)			—			—			(5,177)
Balances, July 31, 2025		13,811,575		$	2,374		$	166,616		$	340,276		$	(114,520)		$	(1,570)		$	393,176


☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT


	Six Months Ended July 31,
	2026		2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	99,365	$	57,825
Adjustments to reconcile net income to net cash provided by operating activities
Stock compensation expense		4,458		3,453
Depreciation		1,204		906
Changes in accrued interest on investments		(1,816)		538
Non-cash lease expense		4,487		2,151
Deferred income tax (benefit) expense		(1,382)		767
Other		313		(1,034)
Changes in operating assets and liabilities
Accounts receivable		(44,468)		(3,226)
Contract assets		7,784		4,689
Other assets		(13,693)		(1,731)
Accounts payable and accrued expenses		41,051		(12,022)
Contract liabilities		113,051		17,579
Net cash provided by operating activities		210,354		69,895

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of short-term investments		(72,500)		(25,000)
Maturities of short-term investments		42,500		80,000
Purchases of available-for-sale securities		(120,084)		(92,164)
Maturities of available-for-sale securities		35,000		25,000
Acquisition, net of cash acquired		(7,970)		—
Purchases of property, plant and equipment		(7,688)		(2,089)
Net cash used in investing activities		(130,742)		(14,253)

CASH FLOWS FROM FINANCING ACTIVITIES
Common stock repurchases		(9,649)		(7,048)
Payments of cash dividends		(14,023)		(10,247)
Settlements of share-based awards, net of withholding taxes paid		(28,057)		(7,632)
Net cash used in financing activities		(51,729)		(24,927)

EFFECTS OF EXCHANGE RATE CHANGES ON CASH		(2,883)		1,872
NET INCREASE IN CASH AND CASH EQUIVALENTS		25,000		32,587
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		339,481		145,263
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	364,481	$	177,850

NON-CASH INVESTING AND FINANCING ACTIVITIES
Right-of-use assets obtained in exchange for lease obligations	$	19,046	$	2,147
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for operating leases	$	4,493	$	2,070


		Three Months Ended July 31,						Six Months Ended July 31,
		2026			2025			2026			2025
United States		$	323,650		$	214,195		$	577,503		$	395,301
Republic of Ireland			42,759			17,244			66,900			27,132
United Kingdom			17,567			6,304			30,527			8,970
Consolidated revenues		$	383,976		$	237,743		$	674,930		$	431,403


		July 31, 2026
					Allowance for			Gross			Gross			Estimated
		Amortized			Credit			Unrealized			Unrealized			Fair
		Cost			Losses			Gains			Losses			Value
U.S. Treasury notes:
Due within one year		$	30,371		$	—		$	105		$	—		$	30,476
Due in one to three years			163,051			—			118			555			162,614
Due in three to five years			293,434			—			—			5,967			287,467
Totals		$	486,856		$	—		$	223		$	6,522		$	480,557


		January 31, 2026
					Allowance for			Gross			Gross			Estimated
		Amortized			Credit			Unrealized			Unrealized			Fair
		Cost			Losses			Gains			Losses			Value
U.S. Treasury notes:
Due within one year		$	45,446		$	—		$	127		$	8		$	45,565
Due in one to three years			77,931			—			1,182			13			79,100
Due in three to five years			277,196			—			2,192			454			278,934
Totals		$	400,573		$	—		$	3,501		$	475		$	403,599


		July 31, 2026								January 31, 2026
		Level 1			Level 2		Level 3			Level 1		Level 2			Level 3
		Inputs			Inputs		Inputs			Inputs		Inputs			Inputs
Cash equivalents:
Money market funds		$	135,288		$	—	$	—		$	149,597	$	—		$	—
Available-for-sale securities:
U.S. Treasury notes			—			480,557		—			—		403,599			—
Totals		$	135,288		$	480,557	$	—		$	149,597	$	403,599		$	—


	Amortization
Years Ending January 31,	Expense
2027 (remainder)	$	387
2028		773
2029		773
2030		773
2031		723
Thereafter		2,601
Total	$	6,030


		Weighted-
		Average
		Grant-Date
		Fair Value
	Shares	Per Share
Outstanding, February 1, 2026	231	$	53.19
Granted	42	$	271.74
Issued	(90)	$	41.21
Outstanding, July 31, 2026	183	$	109.24


Record Date		Payment Date		Amount Per Share
July 23, 2026		July 31, 2026		$	0.500
April 22, 2026		April 30, 2026			0.500
January 22, 2026		January 31, 2026			0.500
October 23, 2025		October 31, 2025			0.500
July 23, 2025		July 31, 2025			0.375
April 22, 2025		April 30, 2025			0.375


				July 31, 2026									January 31, 2026
		Estimated		Gross			Accumulated			Net			Gross			Accumulated			Net
		Useful Life		Amounts			Amortization			Amounts			Amounts			Amortization			Amounts
Trade name		15 years		$	4,499		$	3,199		$	1,300		$	4,499		$	3,049		$	1,450
Customer relationships		10 years			4,730			—			4,730			—			—			—
Totals				$	9,229		$	3,199		$	6,030		$	4,499		$	3,049		$	1,450


		Three Months Ended July 31,						Six Months Ended July 31,
		2026			2025			2026			2025
Power			78.4	%		82.8	%		78.2	%		82.8	%
Industrial			19.8			15.2			19.9			15.1
Teledata			1.8			2.0			1.9			2.1


Three Months Ended
July 31, 2026	Power		Industrial		Teledata		Totals
Revenues	$	301,208	$	76,172	$	6,596	$	383,976
Cost of revenues		233,612		70,644		5,502		309,758
Gross profit		67,596		5,528		1,094		74,218
Selling, general and administrative expenses		10,767		1,634		1,329		13,730
Income (loss) from operations		56,829		3,894		(235)		60,488
Other income, net		9,513		154		15		9,682
Segment income (loss) before income taxes	$	66,342	$	4,048	$	(220)		70,170
Corporate								(3,282)
Consolidated income before income taxes								66,888
Provision for income taxes								13,586
Net income							$	53,302


Three Months Ended							Segment				Consolidated
July 31, 2026	Power		Industrial		Teledata		Totals		Corporate		Totals
Amortization of intangibles	$	—	$	75	$	—	$	75	$	—	$	75
Depreciation		347		199		96		642		3		645
Property, plant and equipment additions		353		4,849		53		5,255		—		5,255

Current assets	$	1,022,970	$	98,039	$	8,263	$	1,129,272	$	189,198	$	1,318,470
Current liabilities		802,317		68,415		5,551		876,283		1,827		878,110
Goodwill		18,476		9,467		2,727		30,670		—		30,670
Total assets		1,073,696		118,938		18,543		1,211,177		189,793		1,400,970


Three Months Ended
July 31, 2025	Power			Industrial		Teledata		Totals
Revenues	$	196,948		$	36,065	$	4,730	$	237,743
Cost of revenues		158,370			31,542		3,564		193,476
Gross profit		38,578			4,523		1,166		44,267
Selling, general and administrative expenses		7,744			1,838		913		10,495
Income from operations		30,834			2,685		253		33,772
Other income, net		4,422			1		11		4,434
Segment income before income taxes	$	35,256		$	2,686	$	264		38,206
Corporate									(2,570)
Consolidated income before income taxes									35,636
Provision for income taxes									361
Net income								$	35,275


					Approximate Dollar
				Total Number of	Value of Shares That May Yet
				Shares Purchased as Part	Be Purchased under the
	Total Number of	Average Price per		of Publicly Announced	Plans or Programs
Period	Shares Repurchased	Share Paid		Plans or Programs	(Dollars in Thousands)
May 1 - 31, 2026	1,680	$	680.32	1,680	$	83,520
June 1 - 30, 2026	9,609	$	715.69	1,800	$	82,264
July 1 - 31, 2026	7,787	$	551.53	7,787	$	77,969
Total	19,076			11,267


Exhibit No.		Title
3.1		Certificate of Incorporation, as amended (incorporated by reference to Exhibit 3.1 to the Registrant’s Quarterly Report on Form 10-Q filed on September 4, 2025).
3.2		Bylaws (incorporated by reference to Exhibit 3.2 to the Registrant’s Annual Report on Form 10-K filed on April 15, 2009).
31.1		Certification of Chief Executive Officer, pursuant to Rule 13a-14(c) under the Securities Exchange Act of 1934.
31.2		Certification of Chief Financial Officer, pursuant to Rule 13a-14(c) under the Securities Exchange Act of 1934.
32.1		Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350. *
32.2		Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350. *
101.INS		XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH		Inline XBRL Taxonomy Extension Schema.
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase.
101.LAB		Inline XBRL Taxonomy Label Linkbase.
101.PRE		Inline XBRL Taxonomy Presentation Linkbase.
101.DEF		Inline XBRLTaxonomy Extension Definition Document.
104		Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.


	ARGAN, INC.

September 2, 2026	By:	/s/ David H. Watson
		David H. Watson
		President and Chief Executive Officer

September 2, 2026	By:	/s/ Joshua S. Baugher
		Joshua S. Baugher
		Senior Vice President, Chief Financial Officer and
		Treasurer (Principal Financial Officer)


Date: September 2, 2026	By:	/s/ David H. Watson
		David H. Watson
		President and Chief Executive Officer
		(Principal Executive Officer)