Q2 2025 Argan Inc Earnings Call Transcript
Key Points
- Argan Inc (AGX) achieved a 61% increase in consolidated revenues to $227 million for the second fiscal quarter.
- Net income for the quarter was $18 million, or $1.31 per diluted share, marking a significant profitability enhancement.
- The company reported a project backlog exceeding $1 billion, with approximately $570 million in renewable projects.
- Argan Inc (AGX) has a strong balance sheet with $485 million in cash and investments, and no debt.
- The Power Industry Services segment saw a 65% increase in revenues, driven by multiple ongoing projects.
- Gross profit percentage declined from 16.8% to 13.7% due to a change in the mix of projects and contract types.
- Selling, general, and administrative expenses increased to $12.4 million, up from $10.5 million in the prior year period.
- The Telecommunications Infrastructure Services segment remains the smallest, contributing only 2% of second-quarter revenues.
- The company faces challenges with turbine demand outstripping supply and interconnection agreements causing delays.
- The Kilroot project resulted in a $12.8 million loss, with ongoing claims exceeding $25 million.
Good evening, ladies and gentlemen, and welcome to the Argan, Inc. earnings release conference call for the second fiscal quarter ended July 31, 2024. This call is being recorded. (Operator Instructions)
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 second fiscal quarter ended July 31, 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 goals and targets regarding the company's revenues and profits.
These statements are subject to
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