AGX Stock Recent News

Argan, Inc. is a buy due to its energy-agnostic business model, robust growth, and strong balance sheet, despite high valuation risks. AGX has seen over 300% revenue growth in five years, with significant project wins and a growing backlog, driving stock performance. The company pays a growing dividend, indicating confidence in its financial health and future growth potential.

ROCKVILLE, Md.--(BUSINESS WIRE)--Argan, Inc. (NYSE: AGX) (“Argan” or the “Company”) today announces that its wholly owned subsidiary, Gemma Power Systems (“Gemma”), entered into an engineering, procurement and construction (“EPC”) services contract with Sandow Lakes Energy Company, LLC (“SLEC”) of Rockdale, Texas, for a 1.2 GW ultra-efficient natural gas-fired plant in Lee County, Texas. The plant will be developed and owned by a SLEC subsidiary and will be capable of supplying power to 800,000.

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This energy stock is back near its all-time high in a new base. The company provides power to data centers.

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Argan's topline grew over 50% in H1 FY25, driven by strong demand and construction activity, particularly in the Power Services segment. The company's backlog exceeded $1 billion, supporting continued revenue growth, with strategic projects and collaborations positioning it well for long-term growth. Despite trading at a slight premium, AGX's robust growth prospect makes it a solid long-term buy.

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Power plant builder Argan raised its quarterly dividend by 25% last night. The new dividend yield is 1.6%.

Argan has returned 77% since my first coverage 6 months ago propelled by strong earnings reports. AGX's earnings show that the company continues to execute well and has margins under control in an industry prone to cost overruns. In a world hungry for energy, Argan's business in the power generation market pits it well for a future with new energy requirements and also replacing carbon-intensive energy plants.