Argan Stock Draws Retail Chatter As Record Project Backlog Firms Up Bullish Investment Case

Argan’s net income rose to $22.5 million, or $1.60 per share, for the three months ended April 30, from $7.9 million, or $0.58 per share, in the year-ago quarter.

Argan Inc. (AGX) stock saw a surge in retail chatter after the company announced higher fiscal first-quarter results.

The power sector-focused construction firm posted first-quarter revenue of $193.7 million, compared with $157.7 million a year earlier. It was also in line with analysts’ expectations.

Argan’s net income rose to $22.5 million, or $1.60 per share, for the three months ended April 30, from $7.9 million, or $0.58 per share, in the year-ago quarter.

“In addition to our record backlog, our project pipeline is robust, reflecting the energy industry’s urgent response to the growing strain on our power grids related to the building of data centers, the onshoring of complex manufacturing, and an increasing amount of EV charging activity,” CEO David Watson said.

U.S. utilities are ramping up their investments to meet the surge in power demand, which is already growing at the fastest pace in decades.

The company said that during the first quarter, it received full notice to proceed for the Sandow Lakes Power Station, a natural gas-fired plant in Lee County, Texas, with a capacity of 1.2 gigawatt.

Its backlog hit a record $1.9 billion at the end of the first quarter.

The company expects to begin work on several new projects, which will push its backlog above $2 billion by the end of the year.

Retail sentiment on Stocktwits was in the ‘extremely bullish’ (84/100) territory, while retail message volume rose 1700% over the past 24 hours.

“This is a world-class organization and an industry leader. You invest here for the long term,” one user said.

Argan stock has risen 57% this year.

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