A builder of power plants and industrial facilities, Argan designs, engineers, and constructs gas-fired, renewable, and biofuel energy projects through its Power, Industrial, and Teledata segments, serving utilities and industrial clients across the U.S. Founded in 1961, the company took a decisive turn in 2006 when it acquired Gemma Power Systems, which became the heart of its power-plant business. A fun quirk: despite the name, it has nothing to do with the Moroccan argan tree or its famous beauty oil — the two are entirely unrelated.
Q1 FY2027 revenue rose 50.2% to $291.0M as power EPC execution lifted backlog-era projects
conversion kept pace as hit a quarterly high. Revenue rose 50.2% to $291.0M and rose 102.5% to $3.24 as power- work ramped and widened 2.0 points to 21.0%. The company enters the year with $2.8B backlog and no debt.
Key takeaways
Power grew 41% to $226.7M, driven by ramping construction on the 1.4 GW, 700 MW, Sandow Lakes, and 860 MW thermal projects, while Trumbull activity declined.
Industrial nearly doubled to $58.3M on higher field services and vessel fabrication, and Teledata revenue rose to $6.0M.
Consolidated improved to 21.0% from 19.0% a year earlier, reflecting favorable project mix and ahead-of-schedule completion of the final Midwest Solar and Battery Project.
Section summaries
Management's Discussion and Analysis
Consolidated revenue rose 50% to $291M, driven by Power segment EPC execution, with gross margin expanding to 21%.
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Power grew 41% to $226.7M, fueled by ramping construction on the 1.4 GW, 700 MW, Sandow Lakes, and 860 MW thermal projects, partially offset by declining Trumbull activity.
more than doubled to $46.1M, aided by a 14.3% from tax benefits; rose 86.5% to $45.4M.
was $113.4M and cash and equivalents rose to $355.8M with no outstanding borrowings; consolidated remained at $2.8B.
The company noted no material changes to market risk exposure or risk factors from the annual report, and a pending legal proceeding is not expected to materially affect the statements.
What changed
The $2.9B FY2026 (more than double the prior year) now stands at $2.8B this quarter, confirming conversion is underway as gas-fired awards ramp.
Industrial Construction Services, which fell 33.2% in Q1 FY2026 and 27.3% in Q2 FY2026, nearly doubled to $58.3M this quarter on field services and fabrication.
at 21.0% held above the 19.0% Q1 FY2026 reading and the 20.5% FY2026 full-year level as the favorable power-project mix continued.
The UK subsidiary lawsuit over the terminated overseas project continues; the $10.0M letter-of-credit draw carried in FY2026 was not resolved this quarter.
Steel and aluminum tariff risk flagged in FY2026 carries forward with no change noted, as new contracts ramp.
What to watch
Whether the $2.8B converts to as Sandow Lakes, 700 MW Combined-Cycle, and 860 MW thermal projects receive notices to proceed next quarter.
Resolution of the UK subsidiary lawsuit and recovery of the $10.0M letter-of-credit draw carried in .
Industrial Construction Services after the near-doubling to $58.3M, against the 's lower from FY2025.
Effect of steel and aluminum tariffs on project costs and timelines as gas-fired contracts ramp.
Industrial nearly doubled to $58.3M on higher field services and vessel fabrication, while Teledata rose to $6.0M.
Consolidated improved to 21.0% from 19.0%, reflecting a favorable project mix and ahead-of-schedule completion of the final Midwest Solar and Battery Project.
more than doubled to $46.1M, aided by a lower of 14.3% due to tax benefits.
was $113.4M; cash and equivalents rose to $355.8M with no outstanding borrowings, while consolidated remained strong at $2.8B.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in our exposure to market risk during the three months ended April 30, 2026. For a broader discussion of the Company’s exposure to market risks, refer to the Company’s market risk disclosures set forth in Part II, Item 7A, “Quantitative and Qu…
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There have been no material changes in our exposure to market risk during the three months ended April 30, 2026.
For a broader discussion of the Company’s exposure to market risks, refer to the Company’s market risk disclosures set forth in Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” of the Annual Report.
See Note 9 to the accompanying condensed consolidated financial statements for discussion of the status of an outstanding legal proceeding as of April 30, 2026. In the normal course of business, we may have pending claims and legal proceedings. It is our opinion, based on inform…
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See Note 9 to the accompanying condensed consolidated financial statements for discussion of the status of an outstanding legal proceeding as of April 30, 2026. In the normal course of business, we may have pending claims and legal proceedings. It is our opinion, based on information available at this time, that the resolution of any current claim or proceeding will not have a material effect on our condensed consolidated financial statements.
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