Q3 2025 Argan Inc Earnings Call Transcript
Key Points
- Argan Inc (AGX) reported its second-highest quarterly results in company history, with a 57% increase in consolidated revenue to $257 million.
- The power services segment experienced a 75% revenue growth to $212 million, showcasing strong performance in both renewable and natural gas projects.
- The company has a robust project backlog of $0.8 billion, with a significant portion dedicated to renewable projects, reflecting its energy-agnostic capabilities.
- Argan Inc (AGX) has a strong balance sheet with $506 million in cash and investments, net liquidity of $281 million, and no debt.
- The Board of Directors approved a 25% increase in the quarterly dividend, indicating confidence in the business and future growth prospects.
- The telecommunications segment contributed only 1% to the third quarter revenues, indicating limited growth in this area.
- Backlog decreased sequentially from $1 billion to $0.8 billion, reflecting the conversion of backlog into revenue and timing of new project contracts.
- SG&A expenses increased to $14 million for the third quarter, although they decreased as a percentage of revenues.
- The industrial construction services segment's backlog dropped to about $66 million, with expectations of reduced revenues in the coming quarters.
- The timing of new project contracts remains unpredictable, which could impact future backlog and revenue growth.
Good evening, ladies and gentlemen, and welcome to the Argan, Inc. earnings release conference call for the third fiscal quarter ended October 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.
Thank you. Good evening, and welcome to our conference call to discuss Argan's results for the third fiscal quarter ended October 31, 2024. On the call today, we have David Watson, Chief Executive Officer; and Josh Baugher, Chief Financial Officer.
I will take a moment to read the safe harbor statements. 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 known and
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