Thu, Sep 5, 8:39 PM (131 days ago)
For the quarter ending July 31, 2024, Argan, Inc. reported significant financial growth, with revenues reaching $227 million, a 60.6% increase from $141 million in the same quarter of 2023. This growth was driven by robust performance in all segments, particularly the power industry services segment, which saw a 64.9% revenue increase. Gross profit rose to $31 million, although the gross profit margin decreased to 13.7% due to project mix changes and unfavorable profit adjustments related to the Kilroot Project, which incurred an estimated loss of $12.8 million. Net income for the quarter was $18.2 million, up 42.5% year-over-year, translating to a diluted EPS of $1.31. Cash flow from operations was strong at $91.2 million, bolstered by increases in contract liabilities and accounts payable. As of July 31, 2024, cash and equivalents stood at $232.7 million, reflecting a solid liquidity position. Looking ahead, the company is focused on expanding its renewable energy project portfolio, with 55% of its project backlog now related to such initiatives. However, uncertainties persist, particularly regarding project delays and regulatory changes in the energy sector.