Wed, Jun 4, 8:21 PM (19 days ago)
**Argan, Inc. (AGX) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $193.7 million (up 22.8% YoY) - **Gross Profit:** $36.9 million (up 105.4% YoY) - **Net Income:** $22.6 million (up 186.1% YoY) - **Earnings per Share (EPS):** $1.60 (up 175.1% YoY) - **Cash Flow from Operations:** $35.3 million **Profit Margins:** - **Gross Margin:** 19.0% (up from 11.4% YoY) - **Operating Margin:** 12.6% (up from 4.2% YoY) - **Net Margin:** 11.7% (up from 5.0% YoY) **Cash Flow and Liquidity:** - **Cash and Cash Equivalents:** $189.3 million (up from $145.3 million QoQ) - **Net Increase in Cash:** $43.9 million **Segment Performance:** - **Power Industry Services:** Revenue up 45.4% YoY, representing 82.8% of total revenue. - **Industrial Construction Services:** Revenue down 33.2% YoY. - **Telecommunications Infrastructure Services:** Revenue up 10.8% YoY. **Trends and Uncertainties:** - **Market Outlook:** Strong demand for power industry services due to increasing energy needs and infrastructure projects. - **Project Backlog:** $1.9 billion as of April 30, 2025, primarily in the power industry services segment. - **Legal Contingencies:** Ongoing legal proceedings related to an overseas project, with potential impacts on future revenues. **Future Operations Impact:** - **New Projects:** Several significant projects in progress, including the Sandow Lakes Power Station and the Tarbert Next Generation Power Station. - **Financial Covenants:** Compliance with credit agreement covenants, including maintaining positive adjusted EBITDA. - **Investments:** Continued investment in solar energy projects and potential future acquisitions. **Summary:** Argan, Inc. demonstrated strong financial performance in Q1 2025, with significant increases in revenue, profit margins, and net income. The company's focus on the power industry services segment and strategic investments in new projects position it for continued growth. However, legal contingencies and market uncertainties may impact future operations. The company remains well-positioned to meet its financial obligations and pursue growth opportunities.