Q1 2025 Argan Inc Earnings Call Transcript
Key Points
- Argan Inc (AGX) reported a 52% increase in consolidated revenues to $157.7 million for the first fiscal quarter ended April 30, 2024.
- The company achieved an EBITDA of $11.9 million, demonstrating improved profitability.
- Project backlog increased to $824 million, with approximately $300 million in renewable projects.
- Argan Inc (AGX) has a strong balance sheet with $416 million in cash and investments, net liquidity of $247 million, and no debt.
- The company is well-positioned to benefit from the growing demand for energy infrastructure, driven by data centers, electric vehicles, and onshoring of manufacturing operations.
- Argan Inc (AGX) incurred a loss of $2.6 million in the quarter due to challenges at APC's Kilroot project in Northern Ireland.
- The Kilroot project has unresolved contract variations and extension of time claims exceeding $25 million, with potential for additional charges.
- Gross profit percentage declined from 13.7% to 11.4% compared to the previous year, partly due to the unfavorable adjustment on the Kilroot project.
- Selling, general, and administrative expenses increased slightly to $11.4 million, although they decreased as a percentage of revenues.
- The company's smallest segment, Telecommunications Infrastructure Services, contributed only 2% of first-quarter revenues, indicating limited growth in this area.
Good evening, ladies and gentlemen, and welcome to the Argan, Inc., earnings release conference call for the first fiscal quarter ended April 30, 2024. This call is being recorded (Operator Instructions) There is a slide presentation that accompanies today's remarks, which can be accessed via the webcast.
At this time, it is my pleasure to turn the floor over to your host for today, Jennifer Belodeau, of IMS Investor Relations. Please go ahead, ma'am.
Thank you. Good evening, and welcome to our conference call to discuss Argan's, results for the first fiscal quarter ended April 30, 2024. On the call today, we have David Watson, Chief Executive Officer; and Hank Deily, Chief Financial Officer.
I will take a moment to read the Safe Harbor statement. Statements made during this conference call and presented in the presentation that are not based on historical facts are forward-looking statements. Such statements include, but are not limited to projections or statements of future
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