UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☑
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended
July 31, 2026
or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
For the Transition Period from to
Commission File Number 001-31756
(Exact Name of Registrant as Specified in Its Charter)
Delaware
13-1947195
(State or Other Jurisdiction of Incorporation)
(I.R.S. Employer Identification No.)
4075 Wilson Boulevard, Suite 440, Arlington, Virginia 22203
(Address of Principal Executive Offices) (Zip Code)
(301) 315-0027
(Registrant’s Telephone Number, Including Area Code)
(Former Name, Former Address and Former Fiscal Year, if Changed since Last Report)
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 (the “Exchange Act”) during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ☐
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes þ No ☐
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer þ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
Title of Each Class
Trading Symbol(s)
Name of Each Exchange on Which Registered
Common Stock, $0.15 par value
AGX
New York Stock Exchange
Indicate the number of shares outstanding of each of the Registrant’s classes of common stock, as of the latest practicable date.
Common stock, $0.15 par value: 14,029,842 shares as of August 28, 2026.
ARGAN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
Six Months Ended
July 31,
2026
2025
REVENUES
$
383,976
237,743
674,930
431,403
Cost of revenues
309,758
193,476
539,598
350,273
GROSS PROFIT
74,218
44,267
135,332
81,130
Selling, general and administrative expenses
17,413
14,212
33,132
26,733
INCOME FROM OPERATIONS
56,805
30,055
102,200
54,397
Other income, net
10,083
5,581
18,457
11,025
INCOME BEFORE INCOME TAXES
66,888
35,636
120,657
65,422
Provision for income taxes
13,586
361
21,292
7,597
NET INCOME
53,302
35,275
99,365
57,825
OTHER COMPREHENSIVE INCOME, NET OF TAXES
Foreign currency translation adjustments
(267)
(251)
(808)
3,370
Net unrealized (losses) gains on available-for-sale securities
(4,550)
(1,082)
(7,209)
1,598
COMPREHENSIVE INCOME
48,485
33,942
91,348
62,793
EARNINGS PER SHARE
Basic
3.80
2.57
7.10
4.23
Diluted
3.76
2.50
7.01
4.09
WEIGHTED AVERAGE SHARES OUTSTANDING
14,028
13,731
13,994
13,680
14,164
14,131
14,181
14,122
CASH DIVIDENDS PER SHARE
0.500
0.375
1.000
0.750
The accompanying notes are an integral part of these condensed consolidated financial statements.
2
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
January 31,
ASSETS
CURRENT ASSETS
Cash and cash equivalents
364,481
339,481
Investments
663,965
555,500
Accounts receivable, net
180,356
133,677
Contract assets
35,713
43,397
Other current assets
73,955
60,202
TOTAL CURRENT ASSETS
1,318,470
1,132,257
Property, plant and equipment, net
22,797
16,596
Goodwill
30,670
28,033
Intangible assets, net
6,030
1,450
Right-of-use and other assets
23,003
8,018
TOTAL ASSETS
1,400,970
1,186,354
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable
115,212
107,540
Accrued expenses
135,878
89,748
Contract liabilities
627,020
513,969
TOTAL CURRENT LIABILITIES
878,110
711,257
Deferred taxes, net
3,061
6,555
Noncurrent liabilities
12,960
6,280
TOTAL LIABILITIES
894,131
724,092
COMMITMENTS AND CONTINGENCIES (see Notes 8 and 9)
STOCKHOLDERS’ EQUITY
Preferred stock, par value $0.10 per share – 500,000 shares authorized; no shares issued and outstanding
—
Common stock, par value $0.15 per share – 30,000,000 shares authorized; 15,828,289 shares issued; 14,032,792 and 13,950,712 shares outstanding at July 31, 2026 and January 31, 2026, respectively
2,374
Additional paid-in capital
165,039
167,234
Retained earnings
491,539
406,197
Treasury stock, at cost – 1,795,497 and 1,877,577 shares at July 31, 2026 and January 31, 2026, respectively
(144,914)
(114,361)
Accumulated other comprehensive (loss) income
(7,199)
818
TOTAL STOCKHOLDERS’ EQUITY
506,839
462,262
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Dollars in thousands)
Common Stock
Additional
Accumulated Other
Outstanding
Par
Paid-in
Retained
Treasury
Comprehensive
Total
Shares
Value
Capital
Earnings
Stock
Income (Loss)
Stockholders' Equity
Balances, February 1, 2026
13,950,712
Net income
46,063
Foreign currency translation loss
(541)
Net unrealized losses on available-for-sale securities
(2,659)
Stock compensation expense
2,036
Stock option exercises and restricted stock unit settlements, net
76,165
(6,037)
(17,653)
(23,690)
Common stock repurchases
(6,450)
(2,955)
Cash dividends
(7,005)
Balances, April 30, 2026
14,020,427
163,233
445,255
(134,969)
(2,382)
473,511
2,422
22,755
(1,045)
(3,322)
(4,367)
(11,267)
(6,694)
(7,018)
Issuance of treasury stock for acquisition (see Note 14)
877
429
71
500
Balances, July 31, 2026
14,032,792
Balances, February 1, 2025
13,634,214
168,966
292,698
(105,643)
(6,538)
351,857
22,550
Foreign currency translation gain
3,621
Net unrealized gains on available-for-sale securities
2,680
1,188
59,472
(4,556)
(1,526)
(6,082)
(55,117)
(6,849)
(5,070)
Balances, April 30, 2025
13,638,569
165,598
310,178
(114,018)
(237)
363,895
2,265
174,006
(1,247)
(303)
(1,550)
(1,000)
(199)
(5,177)
Balances, July 31, 2025
13,811,575
166,616
340,276
(114,520)
(1,570)
393,176
4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Six Months Ended July 31,
CASH FLOWS FROM OPERATING ACTIVITIES
Adjustments to reconcile net income to net cash provided by operating activities
4,458
3,453
Depreciation
1,204
906
Changes in accrued interest on investments
(1,816)
538
Non-cash lease expense
4,487
2,151
Deferred income tax (benefit) expense
(1,382)
767
Other
313
(1,034)
Changes in operating assets and liabilities
Accounts receivable
(44,468)
(3,226)
7,784
4,689
Other assets
(13,693)
(1,731)
Accounts payable and accrued expenses
41,051
(12,022)
113,051
17,579
Net cash provided by operating activities
210,354
69,895
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of short-term investments
(72,500)
(25,000)
Maturities of short-term investments
42,500
80,000
Purchases of available-for-sale securities
(120,084)
(92,164)
Maturities of available-for-sale securities
35,000
25,000
Acquisition, net of cash acquired
(7,970)
Purchases of property, plant and equipment
(7,688)
(2,089)
Net cash used in investing activities
(130,742)
(14,253)
CASH FLOWS FROM FINANCING ACTIVITIES
(9,649)
(7,048)
Payments of cash dividends
(14,023)
(10,247)
Settlements of share-based awards, net of withholding taxes paid
(28,057)
(7,632)
Net cash used in financing activities
(51,729)
(24,927)
EFFECTS OF EXCHANGE RATE CHANGES ON CASH
(2,883)
1,872
NET INCREASE IN CASH AND CASH EQUIVALENTS
32,587
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
145,263
CASH AND CASH EQUIVALENTS, END OF PERIOD
177,850
NON-CASH INVESTING AND FINANCING ACTIVITIES
Right-of-use assets obtained in exchange for lease obligations
19,046
2,147
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for operating leases
4,493
2,070
5
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollar amounts in thousands, except per share data)
NOTE 1 – DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION
Description of the Business
Argan, Inc. (“Argan”) conducts its construction operations through its wholly-owned subsidiaries across three distinct reportable business segments: Power, Industrial, and Teledata. Argan and these consolidated subsidiaries are hereinafter collectively referred to as the “Company.”
Through the Power segment, the Company provides a full range of engineering, procurement, construction, commissioning, maintenance, project development, and technical consulting services to the power generation market. The segment’s customers include independent power producers, public utilities, power plant equipment suppliers and other commercial firms with significant power requirements. Customer projects are located in the United States (the “U.S.”), the Republic of Ireland (“Ireland”) and the United Kingdom (the “U.K.”). The Company’s Industrial segment provides on-site services that support new plant construction and additions for industrial facilities primarily located in the Southeast region of the U.S. The segment also fabricates, delivers, and installs metal components, including piping systems and pressure vessels, and performs maintenance turnarounds, shutdowns, and emergency mobilizations. Its customers include datacenter developers and companies in the power, petrochemical, biopharmaceutical, pulp and paper, and specialty chemical industries, among other industrial end markets. The Company’s Teledata segment provides project management, construction, installation, maintenance, repair, and emergency response services for power distribution and information, communication, and data networks. The segment’s customers include commercial and industrial organizations, as well as state and federal government agencies, primarily throughout the Mid-Atlantic and New England regions of the U.S.
Basis of Presentation and Significant Accounting Policies
The Company’s fiscal year ends on January 31 each year. The condensed consolidated financial statements include the accounts of Argan and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation.
These condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. The accompanying condensed consolidated financial statements and notes should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2026 (“Fiscal 2026”).
In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments considered necessary for a fair statement of the financial position of the Company as of July 31, 2026, and its earnings and cash flows for the interim periods presented. The results of operations for any interim period are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year.
Business Combinations – The Company accounts for business combinations using the acquisition method of accounting. The results of operations of an acquired business are included in the Company’s condensed consolidated financial statements from the date of acquisition. The Company recognizes the identifiable assets acquired and liabilities assumed at their estimated fair values, with certain exceptions, as of the acquisition date, with the excess of the consideration transferred over the net of those amounts recorded as goodwill.
The determination of the fair values of assets acquired and liabilities assumed requires management to make estimates and assumptions, including the selection of valuation methodologies, estimates of future cash flows, discount rates, and useful lives of acquired assets. These estimates are inherently uncertain, and actual results may differ from those estimates. During the measurement period, which does not exceed one year from the acquisition date, the Company may record adjustments
6
to the provisional amounts recognized for assets acquired and liabilities assumed, with a corresponding adjustment to goodwill, in the period such adjustments are identified.
Acquisition-related transaction costs are expensed as incurred and are included in selling, general and administrative expenses in the Company's condensed consolidated statements of earnings. Contingent consideration classified as a liability, if any, is recorded at fair value as of the acquisition date, with subsequent changes in fair value recognized in earnings until the contingency is resolved. See Note 14 for a discussion of the ValCor Communications, LLC (“ValCor”) acquisition.
Recently Issued Accounting Pronouncements
In November 2024, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires public business entities to disclose specific information about certain costs and expenses. The amendments in this update are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the effects, if any, that the adoption of ASU 2024-03 may have on its financial position, results of operations, cash flows, or disclosures.
There are no other recently issued accounting pronouncements that have not yet been adopted that the Company considers material to its condensed consolidated financial statements.
NOTE 2 – REVENUES FROM CONTRACTS WITH CUSTOMERS
Disaggregation of Revenues
The following table presents consolidated revenues for the three and six months ended July 31, 2026 and 2025, disaggregated by the geographic area where the corresponding projects were located:
Three Months Ended July 31,
United States
323,650
214,195
577,503
395,301
Republic of Ireland
42,759
17,244
66,900
27,132
United Kingdom
17,567
6,304
30,527
8,970
Consolidated revenues
Revenues for projects located in Ireland and the U.K. are attributed to the Power segment. The major portions of the Company’s consolidated revenues are recognized pursuant to fixed-price contracts with most of the remaining portions earned pursuant to time-and-material contracts. Consolidated revenues are disaggregated by reportable segment in Note 16 to the condensed consolidated financial statements.
Contract Assets and Liabilities
During the six months ended July 31, 2026 and 2025, there were no material unusual or one-time adjustments to contract assets or contract liabilities balances. The Company recognized the following revenues that were included in the contract liabilities balances at the beginning of the respective period:
Revenues recognized from contract liabilities
291,394
143,116
417,948
244,884
Contract retentions are billed amounts which, pursuant to the terms of the applicable contract, are not paid by customers until a defined phase of a contract or project has been completed and accepted. These retained amounts are reflected in contract assets or contract liabilities depending on the net contract position of the particular contract. The amounts retained by project owners and other customers under construction contracts as of July 31, 2026 and January 31, 2026 were $94.4 million and $54.5 million, respectively.
7
Variable Consideration
Variable consideration includes unapproved change orders where the Company has project-owner directive for additional work or other scope changes but has not yet obtained approval for the associated price or the corresponding additional effort. These amounts are included in the transaction price when it is considered probable that the applicable costs, including those for additional effort, will be recovered through a modification to the contract price. As of July 31, 2026 and January 31, 2026, the aggregate amounts of contract variations included in the corresponding transaction prices pending customer approvals were $27.2 million and $11.4 million, respectively, portions of which related to an overseas project.
Remaining Unsatisfied Performance Obligations
As of July 31, 2026, the Company had remaining unsatisfied performance obligations (“RUPO”) of $2.5 billion. The largest portion of RUPO at any date usually relates to engineering, procurement and construction (“EPC”) services and other construction contracts with typical performance durations of one to four years. The Company estimates that it will recognize approximately 48% of RUPO as revenue during the next 12 months, with substantially all the remaining performance obligations to be recognized within 12 to 24 months thereafter. It is important to note that estimates may be changed in the future and that cancellations, deferrals or scope adjustments may occur related to work included in the amount of RUPO as of July 31, 2026. Accordingly, RUPO may be adjusted to reflect project delays and cancellations, revisions to project scope and cost and foreign currency exchange fluctuations, or to revise estimates, as effects become known. Such adjustments to RUPO may materially reduce future revenues below Company estimates.
NOTE 3 – CASH, CASH EQUIVALENTS AND INVESTMENTS
Cash Equivalents
As of July 31, 2026 and January 31, 2026, certain amounts of cash equivalents were invested in money market funds with assets invested in high-quality money market instruments, including U.S. Treasury obligations; obligations of U.S. government agencies, authorities, instrumentalities or sponsored enterprises; and repurchase agreements secured by such obligations.
The Company’s investments consisted of the following as of July 31, 2026 and January 31, 2026:
Short-term investments
183,408
151,901
Available-for-sale securities
480,557
403,599
Total investments
Short-Term Investments
Short-term investments as of July 31, 2026 and January 31, 2026, consisted solely of certificates of deposit (“CDs”) with remaining maturities of one year or less purchased from two major financial institutions. The Company has the intent and ability to hold the CDs until they mature, and they are carried at cost plus accrued interest. The balances of accrued interest on the CDs as of July 31, 2026 and January 31, 2026 were $3.4 million and $1.9 million, respectively.
8
Available-For-Sale Securities
The Company’s available-for-sale (“AFS”) securities consisted of the following amounts of amortized cost, allowance for credit losses, gross unrealized gains and losses, and estimated fair value by contractual maturity as of July 31, 2026 and January 31, 2026:
Allowance for
Gross
Estimated
Amortized
Credit
Unrealized
Fair
Cost
Losses
Gains
U.S. Treasury notes:
Due within one year
30,371
105
30,476
Due in one to three years
163,051
118
555
162,614
Due in three to five years
293,434
5,967
287,467
Totals
486,856
223
6,522
January 31, 2026
45,446
127
45,565
77,931
1,182
13
79,100
277,196
2,192
454
278,934
400,573
3,501
475
As of July 31, 2026 and January 31, 2026, interest receivable in the amounts of $4.0 million and $3.4 million, respectively, were included in the balances of AFS securities. For the three and six months ended July 31, 2026 and 2025, there were no sales of the Company’s AFS securities and, therefore, there were no amounts of gains or losses reclassified out of other comprehensive income into net income.
The Company does not believe the unrealized losses represent credit losses based on the evaluation of evidence as of July 31, 2026, which includes an assessment of whether it is more likely than not that the Company will be required to sell or intends to sell the investments before recovery of their corresponding amortized cost bases.
Earnings on Cash and Invested Funds
The Company earns interest and dividends on its cash equivalents and invested funds. The Company also earns interest on most of its cash balances. Earnings on invested funds and cash account balances for the three and six months ended July 31, 2026 were $8.8 million and $16.8 million, respectively, and they were $5.5 million and $11.0 million for the three and six months ended July 31, 2025, respectively. Earnings on investments are included in other income, net, in the condensed consolidated statements of earnings.
Concentration Risk
The Company maintains its cash, cash equivalents, and investments at major financial institutions, including euro-based accounts in Ireland and pound sterling-based accounts in the U.K. in support of foreign operations. As of July 31, 2026 and January 31, 2026, approximately 12% and 10%, respectively, of these balances were held by foreign subsidiaries in Ireland and the U.K. Management does not believe that the Company's concentration of cash, cash equivalents, and investments at financial institutions, including amounts in excess of government-insured levels, represents material risks.
9
NOTE 4 – FAIR VALUE MEASUREMENTS
The following table presents the Company’s financial instruments as of July 31, 2026 and January 31, 2026 that are measured and recorded at fair value on a recurring basis:
Level 1
Level 2
Level 3
Inputs
Cash equivalents:
Money market funds
135,288
149,597
Available-for-sale securities:
U.S. Treasury notes
NOTE 5 – ACCOUNTS RECEIVABLE
Accounts receivable includes amounts that have been billed and amounts that are billable to customers. As of July 31, 2026 and January 31, 2026, there were billable amounts related to an overseas project in the total amounts of $25.1 million and $25.5 million, respectively, including the expected refund of the letter of credit draw identified in Note 9.
The amounts of the provision for credit losses for the three and six months ended July 31, 2026 and 2025 were insignificant. The allowances for credit losses as of July 31, 2026 and January 31, 2026 were insignificant.
NOTE 6 – INTANGIBLE ASSETS
The goodwill balances for the Power, Industrial, and Teledata segments were $18.5 million, $9.5 million, and $2.7 million, respectively, at July 31, 2026. The goodwill balances for the Power, Industrial, and Teledata segments were $18.5 million, $9.5 million, and $0.1 million, respectively, at January 31, 2026. The increase in the Teledata segment's goodwill balance reflects $2.6 million of goodwill recognized in connection with the ValCor acquisition (see Note 14) on July 31, 2026. Management does not believe that any events or circumstances occurred or arose since January 31, 2026, that required an updated assessment of the goodwill balances.
The Company’s intangible assets, other than goodwill, relate to the Industrial and Teledata segments and consisted of the following as of July 31, 2026 and January 31, 2026:
Accumulated
Net
Useful Life
Amounts
Amortization
Trade name
15 years
4,499
3,199
1,300
3,049
Customer relationships
10 years
4,730
9,229
On July 31, 2026, the Company recognized $4.7 million of intangible assets in connection with the ValCor acquisition, consisting primarily of customer relationships with a weighted-average estimated useful life of 10 years. There were no other additions to intangible assets during the three and six months ended July 31, 2026, and there were no additions during the three and six months ended July 31, 2025. Amortization expense related to intangible assets for the three and six months ended July 31, 2026 were $0.1 million and $0.2 million, respectively, and was $0.1 million and $0.2 million for the three and six months ended July 31, 2025, respectively.
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The following is a schedule of future amounts of amortization related to purchased intangibles:
Years Ending January 31,
Expense
2027 (remainder)
387
2028
773
2029
2030
2031
723
Thereafter
2,601
NOTE 7 – FINANCING ARRANGEMENTS
On May 24, 2024, the Company and Bank of America, N.A. (the “Bank”) executed the Second Amended and Restated Replacement Credit Agreement with an expiration date of May 31, 2027 (the “Credit Agreement”), which was amended on October 23, 2025. The Credit Agreement has a base lending commitment amount of $35.0 million and establishes the interest rate for revolving loans at the Secured Overnight Financing Rate (“SOFR”) plus 1.85%. In addition to the base commitment, the credit facility includes an accordion feature that allows for an additional commitment amount of $30.0 million, subject to certain conditions. The Company may use the borrowing ability to cover other credit instruments issued by the Bank for the Company’s use in the ordinary course of business as defined in the Credit Agreement. Further, on May 31, 2024, the Company entered into a companion facility, in the amount of $25.0 million, pursuant to which an overseas subsidiary of the Company may cause the Bank’s European entity to issue letters of credit on its behalf that will be secured by a blanket parent company guarantee that was issued by Argan to the Bank.
As of July 31, 2026 and January 31, 2026, the Company did not have any borrowings outstanding under the Credit Agreement. However, the Bank has issued a letter of credit in the outstanding amount of $0.5 million as of July 31, 2026. As of January 31, 2026, the outstanding total amount of the letter of credit was $0.3 million.
The Company has pledged most of its assets to secure its financing arrangements. The Bank’s consent is not required for acquisitions, divestitures, cash dividends or significant investments as long as certain conditions are met. The Credit Agreement requires that the Company comply with certain financial covenants at its fiscal year-end and at each fiscal quarter-end. The Credit Agreement includes other terms, covenants and events of default that are customary for a credit facility of its size and nature, including a requirement to achieve positive adjusted earnings before interest, taxes, depreciation, and amortization, as defined, over each rolling twelve-month measurement period. As of July 31, 2026, the Company was in compliance with the covenants and other requirements of the Credit Agreement.
NOTE 8 – COMMITMENTS
As of July 31, 2026, the estimated amount of the Company’s unsatisfied bonded performance obligations, covering all of its subsidiaries, was approximately $0.9 billion. As of July 31, 2026, the outstanding amount of bonds covering other risks, including warranty obligations and contract payment retentions related to completed activities, was $104.3 million.
NOTE 9 – LEGAL CONTINGENCIES
In the normal course of business, the Company may have pending claims and legal proceedings. The Company maintains accrued expense balances for the estimated amounts of legal costs expected to be billed related to any significant matter. In the opinion of management, based on information available at this time, there are no current claims and proceedings that would have a material adverse effect on the consolidated financial statements. However, the outcomes of such legal claims and proceedings are subject to inherent uncertainties.
In March 2025, the U.K. subsidiary of the Company sued EP NI Energy Limited and EP UK Investment Limited (together referred to as “EP”) in the High Court of Justice, Business and Property Courts of England and Wales for EP’s breach of contract and failure to remedy various events which negatively impacted the schedule and costs of an overseas project, resulting in EP receiving the benefits of the construction efforts of the Company’s U.K. subsidiary and the corresponding progress on the project without making payments to which the Company’s U.K. subsidiary was contractually entitled. The Company’s U.K. subsidiary provided the project owner notice to terminate because of project owner breaches of the
11
contract. Those breaches were not resolved, as a result of which the contract terminated on May 3, 2024. Subsequently, the project owner made a draw for the full amount of a $9.8 million irrevocable letter of credit, or on-demand performance bond, issued by the Company’s bank. The Company believes the project owner improperly initiated the draw on the bond and, therefore, the amount should be refunded. This amount is included in accounts receivable as of July 31, 2026. The Company’s U.K. subsidiary has significant billable receivables, unresolved contract variations and claims for extensions of time, among other issues, related to this overseas project. The project owner has asserted counterclaims that the Company’s U.K. subsidiary disputes. The Company’s U.K. subsidiary will vigorously assert its rights and claims to recover its lost value and collect any remaining monies owed.
NOTE 10 – STOCK-BASED COMPENSATION
Stock-based compensation expense amounts for the three and six months ended July 31, 2026 were $2.4 million and $4.5 million respectively, and they were $2.3 million and $3.5 million for the three and six months ended July 31, 2025, respectively. As of July 31, 2026, there was $17.1 million in unrecognized compensation costs related to outstanding stock awards that the Company expects to recognize over the next three years.
During the six months ended July 31, 2026, the Company awarded performance-based restricted stock units covering a target of 596 shares of common stock, earnings per share performance-based restricted stock units covering a target of 12,583 shares of common stock, and time-based restricted stock units covering 12,024 shares of common stock. The number of shares of common stock to be issued under certain awards may exceed the number of target shares if certain performance goals are exceeded. The changes in the maximum number of shares of common stock issuable pursuant to outstanding restricted stock units for the six months ended July 31, 2026 are presented below (shares in thousands):
Weighted-
Average
Grant-Date
Fair Value
Per Share
Outstanding, February 1, 2026
231
53.19
Granted
42
271.74
Issued
(90)
41.21
Outstanding, July 31, 2026
183
109.24
During the six months ended July 31, 2026, the Company awarded nonqualified stock options to purchase 955 shares of common stock at a weighted-average exercise price per share of $588.28. During the six months ended July 31, 2026, nonqualified stock options to purchase 57,401 shares of common stock were exercised at a weighted-average exercise price per share of $43.02. As of July 31, 2026, there were 21,621 nonqualified stock options outstanding.
Shares Withheld and Treasury Stock
For the six months ended July 31, 2026 and 2025, the Company used 98,920 shares and 233,478 shares of treasury stock, respectively, to settle stock option exercises and other share-based awards. For the six months ended July 31, 2026, the Company withheld 48,924 shares of common stock at the average price per share of $623.99 for the exercise price and/or tax withholding in connection with stock option exercises and other share-based award settlements. For the six months ended July 31, 2025, the Company withheld 95,977 shares of common stock at the average price per share of $194.00 for the exercise price and/or tax withholding in connection with stock option exercises and other share-based award settlements.
NOTE 11 – PROVISION FOR INCOME TAXES
The Company’s effective income tax rate (“ETR”) for the six months ended July 31, 2026 and 2025 was 17.6% and 11.6%, respectively. The Company’s ETR for the six months ended July 31, 2026 and 2025 differed from the U.S. federal statutory rate of 21% primarily due to the favorable tax benefit resulting from stock option exercises and other share-based award settlements during the periods.
For the six months ended July 31, 2026 and 2025, the amount of cash paid for income taxes, net of refunds received, was $15.1 million and $8.0 million, respectively.
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Valuation Allowance
As of July 31, 2026, the Company maintained a valuation allowance of $10.3 million against certain deferred tax assets of its U.K. subsidiary, consisting primarily of net operating loss carryforwards. The Company assesses the realizability of these deferred tax assets each reporting period, considering all available positive and negative evidence, including its recent history of operating results in that jurisdiction, the expected reversal of taxable temporary differences, and projections of future taxable income. The Company’s U.K. operations have generated taxable income in recent periods. If that trend continues, it is reasonably possible that the Company could release all or a portion of this valuation allowance within the next 12 months, which would result in a material income tax benefit in the period of release. The amount and timing of any release will depend on the level of profitability achieved by the U.K. operations and the weight of the evidence available at the time of the assessment.
Solar Energy Projects
The Company holds equity investments in Solar Tax Credit (“STC”) investments. Primarily, the STC investments are structured as limited liability companies that invest in solar energy projects that are eligible to receive energy tax credits. As of July 31, 2026 and January 31, 2026, the investment accounts balances were $1.5 million and $1.7 million, respectively, which are included in other assets in the condensed consolidated balance sheets. As of July 31, 2026, the Company had no remaining cash investment commitments related to the STC investments. These investments are expected to provide positive overall returns over their expected lives.
The Company has STC investments that qualify for the proportional amortization method (“PAM”). For these investments, the Company recognized income tax credits and other income tax benefits of less than $0.1 million during the three and six months ended July 31, 2026. For the three and six months ended July 31, 2025, the Company recognized $0.8 million and $1.5 million of income tax credits and other income tax benefits, respectively. For the three and six months ended July 31, 2026, the Company recorded amortization related to STC investments of less than $0.1 million. For the three and six months ended July 31, 2025, the Company recorded amortization related to STC investments of $0.7 million and $1.4 million, respectively. The amount of non-income tax related activity and other returns related to the STC investments that qualify for PAM was not material for the three and six months ended July 31, 2026 and 2025.
For the three and six months ended July 31, 2026 and 2025, the Company’s share of activity from its STC investments that do not qualify for PAM was not material.
NOTE 12 – EARNINGS PER SHARE
Potentially dilutive securities include stock options and restricted stock units. Diluted earnings per share include only securities that are actually dilutive. Basic and diluted earnings per share are computed as follows (in thousands, except per share data):
Weighted average shares outstanding – basic
Effect of stock awards
136
400
187
442
Weighted average shares outstanding – diluted
Earnings per share
Anti-dilutive securities not included
NOTE 13 – STOCKHOLDERS’ EQUITY
During the six months ended July 31, 2026 and during Fiscal 2026, the Company paid dividends to stockholders as follows:
Record Date
Payment Date
Amount Per Share
July 23, 2026
April 22, 2026
April 30, 2026
January 22, 2026
October 23, 2025
October 31, 2025
July 23, 2025
July 31, 2025
April 22, 2025
April 30, 2025
On April 8, 2026, the board of directors of Argan increased the total authorization to repurchase shares of the Company’s common stock by $50 million, bringing the aggregate authorized amount to $200 million. Pursuant to its established program and authorizations provided by Argan’s board of directors, the Company repurchased shares of its common stock during the six months ended July 31, 2026 and 2025 and added the shares to treasury stock. During these periods, the Company repurchased 17,717 shares and 56,117 shares of common stock, all on the open market, for aggregate prices of approximately $9.6 million, or $544.62 per share, and $7.0 million, or $125.60 per share, respectively.
NOTE 14 – ACQUISITION
On July 31, 2026, the Company acquired all of the membership interests of ValCor, a Connecticut limited liability company, for total consideration of approximately $9.4 million, consisting of $8.0 million in cash, $0.5 million of our common stock issued from treasury, and $0.9 million for the acquisition-date fair value of contingent consideration. Transaction costs related to the acquisition were not material. The purchase price is subject to customary post-closing adjustments, including those related to net working capital and indemnification obligations. ValCor provides installation, maintenance, and repair services for information, communication, and data networks serving defense and aerospace customers throughout New England. The acquisition expands the geographic footprint, business opportunities, and market presence of Company’s Teledata segment.
The acquisition was accounted for as a business combination in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations. The results of ValCor’s operations will be included in the Company’s consolidated financial statements and reported within the Teledata segment from the date of the acquisition. The preliminary allocation of the consideration transferred resulted in $4.7 million of acquired customer relationships and $2.6 million of goodwill. The estimated purchase price and allocation are preliminary and may change during the measurement period. The acquisition was not material to the Company's condensed consolidated financial statements, and accordingly, supplemental pro forma results of operations and the revenue and earnings of ValCor since the acquisition date have not been presented.
NOTE 15 – CUSTOMER CONCENTRATIONS
Most of the Company’s consolidated revenues relate to performance by the Power segment. The following schedule presents the percentage of consolidated revenues for each reportable segment for the respective periods:
Power
78.4
%
82.8
78.2
Industrial
19.8
15.2
19.9
15.1
Teledata
1.8
2.0
1.9
2.1
The Company’s most significant customer relationships for the three months ended July 31, 2026 included four Power customers, which accounted for 15%, 15%, 13%, and 13% of consolidated revenues. The Company’s most significant customer relationships for the three months ended July 31, 2025 included three Power customers, which accounted for 30%, 17%, and 13% of consolidated revenues. The Company’s most significant customer relationships for the six months ended July 31, 2026 included four Power customers, which accounted for 15%, 14%, 11%, and 11% of consolidated revenues. The Company’s most significant customer relationships for the six months ended July 31, 2025 included two Power customers, which accounted for 27% and 23% of consolidated revenues.
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The accounts receivable balances from four major customers represented 23%, 16%, 14%, and 12% of the corresponding consolidated balance as of July 31, 2026. The accounts receivable balances from three major customers represented 29%, 19%, and 11% of the corresponding consolidated balance as of January 31, 2026.
The contract asset balances attributable to three major customers represented 22%, 16%, and 11% of the corresponding consolidated balance as of July 31, 2026, and the contract asset balances attributable to three major customers represented 23%, 22%, and 19% of the corresponding consolidated balance as of January 31, 2026.
NOTE 16 – SEGMENT REPORTING
Segments represent components of an enterprise for which discrete financial information is available that is evaluated regularly by the Company’s chief executive officer, who is the Company’s chief operating decision maker (the “CODM”), in determining how to allocate resources and in assessing performance. The Company’s reportable segments recognize revenues and incur expenses and are organized as separate business units, each with distinct management teams, customers, workforces, and service offerings. The Company’s reportable segments may include more than one operating segment.
Income before income taxes is the measure of segment profit or loss used by the CODM. The CODM reviews segment income before income taxes on a monthly basis, comparing actual results to the annual operating plan and to prior periods. The CODM uses the resulting analysis in deciding the level of capital resources to allocate to each segment, in evaluating the performance of segment management, and in determining incentive compensation.
In addition to income before income taxes, the CODM uses gross profit to evaluate project execution and uses income from operations to evaluate the management of selling, general and administrative expenses. Amounts for these measures, and reconciliations of each to the Company’s consolidated results, are presented in the tables below.
Intersegment revenues and the related cost of revenues are netted against the corresponding amounts of the segment receiving the intersegment services. For the three and six months ended July 31, 2026, intersegment revenues were $2.4 million and $2.8 million, respectively, and primarily related to services provided by the Teledata segment to the Industrial segment. For the six months ended July 31, 2025, intersegment revenues were $1.9 million and primarily related to services provided by the Industrial segment to the Power segment. The amount of intersegment revenues for the three months ended July 31, 2025 was insignificant. Pricing for intersegment services is established based on the amounts negotiated between the respective parties.
Summarized below are certain operating results and financial position data of the Company’s reportable segments for the three and six months ended July 31, 2026 and 2025. Selling, general and administrative expenses include compensation and benefits, professional fees, information technology, insurance premiums, rent, business development, and amortization and depreciation expenses incurred directly by each segment. Other income, net, primarily includes earnings on invested funds. Corporate net expenses consist primarily of corporate overhead costs, partially offset by certain earnings on cash and cash equivalents. Corporate current assets primarily consist of cash, cash equivalents, and income-tax related assets.
Revenues
301,208
76,172
6,596
233,612
70,644
5,502
Gross profit
67,596
5,528
1,094
10,767
1,634
1,329
13,730
Income (loss) from operations
56,829
3,894
(235)
60,488
9,513
154
15
9,682
Segment income (loss) before income taxes
66,342
4,048
(220)
70,170
Corporate
(3,282)
Consolidated income before income taxes
Segment
Consolidated
Amortization of intangibles
75
347
199
96
642
645
Property, plant and equipment additions
353
4,849
53
5,255
Current assets
1,022,970
98,039
8,263
1,129,272
189,198
Current liabilities
802,317
68,415
5,551
876,283
1,827
18,476
9,467
2,727
Total assets
1,073,696
118,938
18,543
1,211,177
189,793
196,948
36,065
158,370
31,542
3,564
38,578
4,523
1,166
7,744
1,838
913
10,495
Income from operations
30,834
2,685
253
33,772
4,422
1
4,434
Segment income before income taxes
35,256
2,686
264
38,206
(2,570)
98
163
482
491
914
753
18
1,685
1,694
656,368
52,060
4,769
713,197
115,587
828,784
451,599
26,758
3,964
482,321
2,001
484,322
90
690,653
68,338
7,353
766,344
116,360
882,704
527,875
134,476
12,579
406,698
122,071
10,829
121,177
12,405
1,750
19,996
3,597
2,491
26,084
101,181
8,808
(741)
109,248
17,365
180
17,557
118,546
8,988
(729)
126,805
(6,148)
16
150
675
351
172
1,198
2,158
5,477
7,688
357,304
65,249
8,850
285,756
57,575
6,942
71,548
7,674
1,908
14,530
3,450
1,831
19,811
57,018
4,224
77
61,319
8,794
43
8,838
65,812
4,225
120
70,157
(4,735)
196
383
323
188
894
1,129
765
106
2,000
89
2,089
NOTE 17 — SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION
Other current assets consisted of the following as of July 31, 2026 and January 31, 2026:
Income tax refunds receivable and prepaid income taxes
35,729
36,019
Raw materials inventory
13,129
10,978
Prepaid expenses
12,115
5,788
12,982
7,417
Total other current assets
Accrued expenses consisted of the following as of July 31, 2026 and January 31, 2026:
Accrued project costs
66,009
38,623
Accrued compensation
40,239
40,734
Lease liabilities
10,915
2,516
18,715
7,875
Total accrued expenses
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion summarizes the financial position of Argan, Inc. and its subsidiaries as of July 31, 2026, and the results of their operations for the three and six months ended July 31, 2026 and 2025, and should be read in conjunction
17
with (i) the unaudited condensed consolidated financial statements and notes thereto included elsewhere in this Quarterly Report on Form 10-Q and (ii) the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for Fiscal 2026 that was filed with the SEC on March 26, 2026 (the “Annual Report”).
Cautionary Statement Regarding Forward Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain forward-looking statements. We have made statements in this Item 2 and elsewhere in this Quarterly Report on Form 10-Q that may constitute “forward-looking statements.” The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “foresee,” “should,” “would,” “could,” or other similar expressions are intended to identify forward-looking statements.
These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable when made, we cannot guarantee future results, levels of activity, performance, or achievements.
All comments concerning our expectations for future revenues and operating results are based on our forecasts for existing operations that do not include the potential impacts of any future acquisitions.
There are a number of important factors that could cause our actual results to differ materially from the results anticipated by our forward-looking statements, which include, but are not limited to:
Additional factors include those described in our Annual Report on Form 10-K for the fiscal year ended January 31, 2026, including under the captions Risk Factors, Management’s Discussion and Analysis of Financial Condition and Results of Operations, and Business, in our quarterly reports on Form 10-Q, including under the captions Risk Factors and Management’s Discussion and Analysis of Financial Condition and Results of Operations, and in our subsequent filings with the SEC.
There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business, and we undertake no obligation to update or revise any forward-looking statements except as required by law. You should not place undue reliance on any forward-looking statements that we may make.
Business Description
The Company is primarily an engineering and construction firm that conducts operations through its wholly-owned subsidiaries across three distinct reportable business segments: Power, Industrial, and Teledata.
Power: Our Power segment provides a full range of engineering, procurement, construction, commissioning, maintenance, project development, and technical consulting services to the power generation market. The customers include primarily independent power producers, public utilities, power plant equipment suppliers, and other commercial firms with significant power requirements. Customer projects are located in the U.S., Ireland, and the U.K.
Industrial: Our Industrial segment provides on-site services that support new plant construction and additions, maintenance turnarounds, shutdowns, and emergency mobilizations for industrial operations primarily located in the Southeast region of the U.S. The segment also fabricates, delivers, and installs metal components such as piping systems and pressure vessels. Its customers include datacenter developers and companies in the power, petrochemical, biopharmaceutical, pulp and paper, and specialty chemical industries, among other industrial end markets.
Teledata: Our Teledata segment provides project management, construction, installation, maintenance, repair, and emergency response services across power distribution and information, communications, and data networks. The segment’s customers include commercial and industrial organizations, as well as state and federal government agencies, primarily throughout the Mid-Atlantic and New England regions of the U.S.
Together, these segments enable us to serve a wide range of client needs across power generation, industrial construction, and teledata infrastructure, establishing our presence as a diversified provider in the construction and engineering sectors.
We may make opportunistic acquisitions and/or investments by identifying companies with significant potential for profitable growth and realizable synergies with one or more of our existing businesses. As a result, we may have more than one industrial focus depending on the opportunities and/or needs of our customers. Acquired companies will be operated in a manner that we believe will best provide long-term and enduring value for our stockholders.
Acquisition
On July 31, 2026, we acquired all of the membership interests of ValCor for total consideration of approximately $9.4 million, consisting of $8.0 million in cash, $0.5 million of our common stock issued from treasury, and $0.9 million for the acquisition-date fair value of contingent consideration. ValCor is reported within our Teledata segment. See Note 14 to the accompanying condensed consolidated financial statements.
The acquisition extends the geographic reach of our Teledata segment into New England and adds a customer base of defense and aerospace organizations that complements the segment’s existing commercial, industrial, and government customers. Because the acquisition closed on the last day of the quarter, ValCor did not contribute revenues or earnings to our results of operations for the three and six months ended July 31, 2026. The acquisition was not material to our condensed consolidated financial statements, and we do not expect it to have a material effect on our consolidated results of operations or financial condition.
Market Outlook
Most of our consolidated revenues relate to performance in the U.S. by the Power segment, which provides EPC services to design, build, and commission large-scale energy projects. In the U.S., electricity demand has reached its highest level in two decades, driven by the build-out of data centers supporting artificial intelligence technologies, the adoption of electric vehicles, and the reshoring of manufacturing activities. Keeping up with growing energy demand is further challenged by the aging fleet of traditional power facilities that are at or nearing the end of their operational lives. Throughout the U.S., the risk of electricity shortages is rising as the retirement of traditional power plants outpaces their replacements. Grid operators have emphasized the need for additional dispatchable, reliable power sources to support system stability, particularly during periods of peak demand or reduced renewable output. Natural gas-fired power plants are expected to remain a key component of future capacity additions due to their cost-effectiveness, reliability, and ability to support intermittent energy sources.
While utility-scale solar, wind, and battery storage projects continue to expand their prevalence – supported by declining capital costs, improved energy storage systems, and policy incentives – they often cannot provide the same level of
19
consistent, around-the-clock power generation as thermal plants. Despite their increasing cost competitiveness and their rapid deployment over the past several years, the long-term trajectory of renewables may be influenced by shifts in energy policy, evolving regulatory frameworks, and grid integration challenges.
The pace of new power generation development continues to be constrained by a limited number of experienced EPC contractors, equipment supply limitations, interconnection delays, and specialized labor availability. Lead times for large gas turbines, transformers, and other grid equipment have extended meaningfully beyond historical norms as manufacturer order books have expanded, and equipment costs have risen accordingly. Competition for skilled craft labor has also intensified, as data center, semiconductor, liquefied natural gas, and industrial construction activity often draw from the same regional labor pools. These dynamics have contributed to a supply-constrained environment for large-scale power generation construction, which we believe supports a strong pipeline of project opportunities for contractors with demonstrated execution experience. Our backlog growth over the past year reflects these conditions and the continued demand for experienced contractors capable of executing complex power generation projects. However, the timing and extent of future project awards remain subject to a variety of factors, including regulatory developments, financing conditions, permitting timelines, equipment availability, and broader economic conditions, any of which could affect the pace at which new power generation projects move forward. For example, community opposition to new large-scale data center development has contributed to moratoria and other restrictions recently adopted or proposed in several states and localities, which could moderate the pace of load growth in affected markets, although these measures are directed at data center development rather than power generation.
Recent changes in U.S. trade policy, including the implementation of new or increased tariffs, have introduced cost and supply chain uncertainties affecting certain construction materials and equipment. Tariffs on imported materials, including steel and aluminum, could significantly impact the cost of building power plants and may cause import delays, increasing lead times necessary for materials to arrive at our construction sites. The resulting rise in material costs and delivery delays could lead to higher overall project costs and changes to project timelines. As the current U.S. administration’s approach to tariffs remains fluid, the full extent of these effects remains uncertain. We continue to monitor developments closely, as prolonged or expanded trade restrictions could negatively affect project costs, timing, and customer demand.
Project Backlog
As of July 31, 2026 and January 31, 2026, our consolidated project backlog amounts of $2.5 billion and $2.9 billion, respectively, consisted substantially of projects within our Power segment.
The amount of our project backlog reported at a point in time represents the expected revenue from the remaining work on projects where the scope is sufficiently defined and the contract value can be reasonably estimated. While the inclusion of contract values in project backlog involves management judgment based on the facts and circumstances, we typically include the value of the contract in project backlog upon receiving a notice to proceed from the project owner. In making the determination of project backlog, management may consider several factors, including terms of the contract, the degree of project financing and permitting, and historical experience with similar contracts. The start of new projects is primarily controlled by project owners and delays may occur that are beyond our control.
860 MW Thermal Project
In October 2025, we entered into an EPC services contract and received the corresponding full notice to proceed (“FNTP”) for the construction of an approximately 860 MW natural gas-fired power plant located in the Electric Reliability Council of Texas (“ERCOT”) market. Construction began during the fourth quarter of Fiscal 2026, and the project has an expected completion date in calendar year 2028.
1.4 GW Thermal Project
In October 2025, we received FNTP on an EPC services contract for a 1.4 GW combined-cycle natural gas-fired power plant in Ward County, Texas. Construction began during the fourth quarter of Fiscal 2026, and the project has an expected completion date in calendar year 2029.
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170 MW Thermal Project
In July 2025, we entered into an EPC services contract for the construction of a power plant with a planned electricity generation capacity of approximately 170 MW in County Meath, Ireland. Project activity commenced in the third quarter of Fiscal 2026. The project has an expected project completion date in calendar year 2028.
Sandow Lakes Power Station (“1.2 GW Power Station”)
In April 2025, we received a notice to proceed on an EPC services contract to build a 1.2 GW combined-cycle natural gas-fired power plant in Lee County, Texas. Project activity commenced in the second quarter of Fiscal 2026. The project has an expected completion date in calendar year 2028.
Tarbert Next Generation Power Station
In January 2025, we entered into an EPC services contract to build an approximately 300 MW biofuel power plant located in County Kerry, Ireland. The Tarbert Next Generation Power Station will run on 100% sustainable biofuels, specifically hydrotreated vegetable oil. Project activity commenced in the first quarter of Fiscal 2026. The project has an expected completion date towards the end of calendar year 2027.
700 MW Combined-Cycle Project
In December 2024, we entered into an EPC services contract and received the corresponding FNTP to build an approximately 700 MW combined-cycle natural gas-fired power plant located in the U.S. Project activity commenced in the fourth quarter of Fiscal 2025. Project completion is scheduled for calendar year 2028.
405 MW Midwest Solar Project
In August 2024, we received FNTP on an EPC services contract to construct a utility-scale solar field in Illinois with the capacity to provide 405 MW of electrical power. The project is expected to reach substantial completion during the fiscal quarter ending October 31, 2026.
Midwest Solar and Battery Projects
Between January and early May 2024, we received FNTPs for three state-of-the-art solar energy and battery energy storage facilities in Illinois. The three projects will cumulatively represent 160 MW of electrical power and 22 MW of energy storage. Two of these projects were completed in Fiscal 2025. Substantial completion for the remaining project was achieved during the first quarter of the fiscal year ending January 31, 2027 (“Fiscal 2027”), and final completion was achieved subsequent to July 31, 2026.
Trumbull Energy Center
In November 2022, we received FNTP related to an EPC services contract for the construction of a 950 MW combined-cycle natural gas-fired power plant in Lordstown, Ohio. Substantial completion of the project was reached during the fourth quarter of Fiscal 2026, and final completion was achieved during the first quarter of Fiscal 2027.
Industrial Segment Project Backlog
As of July 31, 2026, the Industrial segment’s project backlog was approximately $209.6 million as compared to $253.0 million on January 31, 2026. In November 2025, we were awarded a contract for the fabrication of approximately 2,000 horizontal pressure vessels intended for use in thermal energy storage and chilled water buffer cooling systems at the customer's data center facilities. To support execution of this contract and future orders, we purchased land in Farmville, North Carolina for construction of an additional fabrication facility, which is expected to be completed during the third quarter of Fiscal 2027.
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Comparison of the Results of Operations for the Three Months Ended July 31, 2026 and 2025
The following schedule compares our operating results for the three months ended July 31, 2026 and 2025 (dollars in thousands):
$ Change
% Change
104,260
52.9
40,107
111.2
1,866
39.5
146,233
61.5
COST OF REVENUES
75,242
47.5
39,102
124.0
1,938
54.4
116,282
60.1
29,951
67.7
3,201
22.5
26,750
89.0
4,502
80.7
31,252
87.7
13,225
3,663.4
18,027
51.1
DILUTED EARNINGS PER SHARE
1.26
50.4
Power Segment
The revenues of the Power segment increased by 52.9%, or $104.3 million, to $301.2 million for the three months ended July 31, 2026 compared with revenues of $196.9 million for the three months ended July 31, 2025 as the quarterly construction activities increased for the 1.4 GW Thermal Project, the 700 MW Combined-Cycle Project, the 1.2 GW Power Station, and the 860 MW Thermal Project. The primary drivers for this segment’s revenues for the three months ended July 31, 2025, were the construction of the 405 MW Midwest Solar Project, the Midwest Solar and Battery Projects, and the Trumbull Energy Center. The revenues of this business segment represented approximately 78.4% of consolidated revenues for the quarter ended July 31, 2026 and 82.8% of consolidated revenues for the corresponding prior year quarter.
Industrial Segment
The revenues of the Industrial segment increased by $40.1 million, or 111.2%, to $76.2 million for the three months ended July 31, 2026 compared to revenues of $36.1 million for the three months ended July 31, 2025, as the amounts of field services construction activities and vessel fabrication work increased between periods. For the three months ended July 31, 2026 and 2025, the revenues of this segment represented 19.8% and 15.2% of consolidated revenues for the corresponding periods, respectively.
Teledata Segment
The revenues of the Teledata segment were $6.6 million for the three months ended July 31, 2026, compared with revenues of $4.7 million for the three months ended July 31, 2025.
Cost of Revenues
Due primarily to the increase in consolidated revenues for the three months ended July 31, 2026 compared with revenues for the three months ended July 31, 2025, consolidated cost of revenues also increased. These costs were $309.8 million and $193.5 million for the three-month periods ended July 31, 2026 and 2025, respectively.
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For the three-month period ended July 31, 2026, we reported a consolidated gross profit of approximately $74.2 million, which represented a gross profit percentage of approximately 19.3% of corresponding consolidated revenues. For the three-month period ended July 31, 2025, we reported a consolidated gross profit of approximately $44.3 million, which represented a gross profit percentage of approximately 18.6% of corresponding consolidated revenues. The gross profit percentage increased between periods primarily due to the changing mix of projects and contract types and strong execution in our Power segment. The increase in gross profit percentage was partially offset by decreased performance on certain projects in our Industrial and Teledata segments. The gross profit percentages of corresponding revenues for the Power, Industrial, and the Teledata segments were 22.4%, 7.3% and 16.6%, respectively, for the quarter ended July 31, 2026. The gross profit percentages of corresponding revenues for the Power, Industrial, and the Teledata segments were 19.6%, 12.5% and 24.7%, respectively, for the quarter ended July 31, 2025.
Selling, General and Administrative Expenses
These costs were $17.4 million and $14.2 million for the three months ended July 31, 2026 and 2025, respectively, and represented 4.5% and 6.0% of corresponding consolidated revenues, respectively.
Other Income, Net
For the three months ended July 31, 2026 and 2025, the net amounts of other income were $10.1 million and $5.6 million, respectively, which primarily reflected income earned during the periods on investments, cash and cash equivalent balances. The increase in other income, net, period-over-period was driven by higher average balances of cash and invested funds, partially offset by a lower weighted average annual yield during the three months ended July 31, 2026 compared to the same period in the prior year.
Provision for Income Taxes
We recorded income tax expense for the three months ended July 31, 2026 in the net amount of approximately $13.6 million. Our effective income tax rate for the three months ended July 31, 2026 was 20.3%. This effective tax rate differed from the U.S. federal statutory rate of 21% due primarily to the favorable tax benefit resulting from stock option exercises and other share-based award settlements during the period.
We recorded income tax expense for the three months ended July 31, 2025 in the net amount of approximately $0.4 million. Our effective income tax rate for the three months ended July 31, 2025 was 1.0%, which differed from the U.S. federal statutory rate due primarily to the favorable tax benefit resulting from stock option exercises during the period.
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Comparison of the Results of Operations for the Six Months Ended July 31, 2026 and 2025
The following schedule compares our operating results for the six months ended July 31, 2026 and 2025 (dollars in thousands):
170,571
47.7
69,227
106.1
3,729
42.1
243,527
56.5
120,942
42.3
64,496
112.0
3,887
56.0
189,325
54.1
54,202
66.8
6,399
23.9
47,803
87.9
7,432
67.4
55,235
84.4
13,695
180.3
41,540
71.8
2.92
71.4
The revenues of the Power segment increased by 47.7%, or $170.6 million, to $527.9 million for the six months ended July 31, 2026 compared with revenues of $357.3 million for the six months ended July 31, 2025 as the construction activities increased for the 1.4 GW Thermal Project, the 700 MW Combined-Cycle Project, the 1.2 GW Power Station, and the 860 MW Thermal Project. The primary drivers for this segment’s revenues for the six months ended July 31, 2025, were the construction of the 405 MW Midwest Solar Project and the 700 MW Combined-Cycle Project. The revenues of this business segment represented approximately 78.2% of consolidated revenues for the six months ended July 31, 2026 and 82.8% of consolidated revenues for the corresponding prior year period.
The revenues of the Industrial segment increased by $69.2 million, or 106.1%, to $134.5 million for the six months ended July 31, 2026 compared to revenues of $65.2 million for the six months ended July 31, 2025, as the amounts of field services construction activities and vessel fabrication work increased between periods. For the six months ended July 31, 2026 and 2025, the revenues of this segment represented 19.9% and 15.1% of consolidated revenues for the corresponding periods, respectively.
The revenues of the Teledata segment were $12.6 million for the six months ended July 31, 2026, compared with revenues of $8.9 million for the six months ended July 31, 2025.
Due primarily to the increase in consolidated revenues for the six months ended July 31, 2026 compared with revenues for the six months ended July 31, 2025, consolidated cost of revenues also increased. These costs were $539.6 million and $350.3 million for the six-month periods ended July 31, 2026 and 2025, respectively.
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For the six-month period ended July 31, 2026, we reported a consolidated gross profit of approximately $135.3 million, which represented a gross profit percentage of approximately 20.1% of corresponding consolidated revenues. For the six-month period ended July 31, 2025, we reported a consolidated gross profit of approximately $81.1 million, which represented a gross profit percentage of approximately 18.8% of corresponding consolidated revenues. The gross profit percentage increased between periods primarily due to the changing mix of projects and contract types and strong execution in our Power segment. The increase in gross profit percentage was partially offset by decreased performance on certain projects in our Industrial and Teledata segments. The gross profit percentages of corresponding revenues for the Power, Industrial, and the Teledata segments were 23.0%, 9.2% and 13.9%, respectively, for the six months ended July 31, 2026. The gross profit percentages of corresponding revenues for the Power, Industrial, and the Teledata segments were 20.0%, 11.8% and 21.6%, respectively, for the six months ended July 31, 2025.
These costs were $33.1 million and $26.7 million for the six months ended July 31, 2026 and 2025, respectively, and represented 4.9% and 6.2% of corresponding consolidated revenues, respectively.
For the six months ended July 31, 2026 and 2025, the net amounts of other income were $18.5 million and $11.0 million, respectively, which primarily reflected income earned during the periods on investments, cash and cash equivalent balances. The increase in other income, net, period-over-period was driven by higher average balances of cash and invested funds, partially offset by a lower weighted average annual yield during the six months ended July 31, 2026 compared to the same period in the prior year.
We recorded income tax expense for the six months ended July 31, 2026 in the net amount of approximately $21.3 million. Our effective income tax rate for the six months ended July 31, 2026 was 17.6%. This effective tax rate differed from the U.S. federal statutory rate of 21% due primarily to the favorable tax benefit resulting from stock option exercises and other share-based award settlements during the period.
We recorded income tax expense for the six months ended July 31, 2025 in the net amount of approximately $7.6 million. Our effective income tax rate for the six months ended July 31, 2025 was 11.6%, which differed from the U.S. federal statutory rate due primarily to the favorable tax benefit resulting from stock option exercises during the period.
Liquidity and Capital Resources as of July 31, 2026
As of July 31, 2026 and January 31, 2026, our balances of cash and cash equivalents were $364.5 million and $339.5 million, respectively, which represented an increase of $25.0 million during the current fiscal year.
The net amount of cash provided by operating activities for the six months ended July 31, 2026 was $210.4 million. Our net income for the six months ended July 31, 2026, adjusted favorably by the net amount of non-cash income and expense items, represented a source of cash in the total amount of $106.6 million. The increase in contract liabilities of $113.1 million and the increase in the combined level of accounts payable and accrued expenses in the amount of $41.1 million represented sources of cash during the period. The decrease in contract assets of $7.8 million also represented a source of cash during the period. The increase in accounts receivable of $44.5 million and the increase in other assets in the amount of $13.7 million represented uses of cash during the period.
During the six months ended July 31, 2026, we used $130.7 million for investing activities, including $85.1 million, net of maturities, to invest in AFS securities consisting of U.S. Treasury notes. We also used $30.0 million, net of maturities, to invest in CDs. We also used $7.7 million for purchases of property, plant, and equipment. We also used $8.0 million, net of cash acquired, for the acquisition of ValCor.
For the six months ended July 31, 2026, we used $51.7 million in cash for financing activities, including $28.1 million for share-based award settlements, which represented payments for withholding taxes reimbursed by shares of common stock, net of proceeds received from stock option exercises. We also used $14.0 million for the payment of regular cash dividends and $9.6 million used to repurchase shares of common stock pursuant to our share purchase program. As of July 31, 2026, there were no restrictions with respect to intercompany payments between the holding company and all subsidiaries.
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In connection with the ValCor acquisition, we may be required to pay contingent consideration in cash over the three-year period following the closing upon the satisfaction of specified conditions, and to pay additional cash and issue shares of our common stock under a three-year deferred compensation arrangement with a key employee of ValCor upon the achievement of specified performance targets. The purchase price also remains subject to customary post-closing adjustments, including those related to net working capital and indemnification obligations. We do not expect these amounts to have a material effect on our liquidity or capital resources.
As of July 31, 2026, certain amounts of our cash equivalents were invested in money market funds with assets invested in cash, U.S. Treasury obligations, other obligations issued by U.S. Government agencies and sponsored enterprises, and repurchase agreements secured by such obligations. Most of our operating bank account balances are maintained with the Bank. We do maintain certain euro-based bank accounts in Ireland and certain pound sterling-based bank accounts in the U.K. in support of our overseas operations.
In order to monitor the actual and necessary levels of liquidity for our business, we focus on net liquidity, or working capital, in addition to our cash balances. During the six months ended July 31, 2026, our net liquidity increased by $19.4 million to $440.4 million from $421.0 million as of January 31, 2026, due primarily to our net income, partially offset by the payment of cash for the ValCor acquisition, payment of cash dividends, common stock repurchases, and settlements of share-based awards, net of withholding taxes paid. Our working capital levels are less subject to the volatility that affects our cash and cash equivalents because we carry no debt service obligations, fixed asset acquisitions in a reporting period are typically low, and our net liquidity includes short-term investments and AFS investments.
We believe that cash on hand, our cash equivalents, cash that will be provided from the maturities of short-term investments and other debt securities and cash generated from our future operations, with or without funds available under our Credit Agreement, will be adequate to meet our general business needs in the foreseeable future. In general, we maintain significant liquid capital in our consolidated balance sheet to ensure the maintenance of our bonding capacity and to provide parent company performance guarantees for EPC and other construction projects.
However, any significant future acquisition, investment, or other unplanned cost or cash requirement may require us to raise additional funds through the issuance of debt and/or equity securities. There can be no assurance that such financing will be available on terms acceptable to us, or at all.
Financing Arrangements
On May 24, 2024, we executed with the Bank the Credit Agreement with an expiration date of May 31, 2027. The Credit Agreement, which was amended on October 23, 2025, has a base lending commitment amount of $35.0 million and establishes the interest rate for revolving loans at SOFR plus 1.85%. In addition to the base commitment, the credit facility includes an accordion feature that allows for an additional commitment amount of $30.0 million, subject to certain conditions. We may use the borrowing ability to cover other credit instruments issued by the Bank for our use in the ordinary course of business as defined in the Credit Agreement. Further, on May 31, 2024, we entered into a companion facility, in the amount of $25.0 million, pursuant to which an overseas subsidiary of the Company may cause the Bank’s European entity to issue letters of credit on its behalf that are secured by a blanket parent company guarantee issued by Argan to the Bank.
As of July 31, 2026, we did not have any outstanding borrowings under the Credit Agreement. However, the Bank has issued a letter of credit in the total outstanding amount of $0.5 million as of July 31, 2026. The comparable outstanding total amount of the letter of credit at January 31, 2026 was $0.3 million.
We have pledged the majority of the Company’s assets to secure its financing arrangements. The Bank’s consent is not required for acquisitions, divestitures, cash dividends, or significant investments as long as certain conditions are met. The Credit Agreement requires that we comply with certain financial covenants at its fiscal year-end and at each fiscal quarter-end. The Credit Agreement includes other terms, covenants and events of default that are customary for a credit facility of its size and nature, including a requirement to achieve positive adjusted earnings before interest, taxes, depreciation, and amortization, as defined, over each rolling twelve-month measurement period. As of July 31, 2026, we were in compliance with the covenants and other requirements of the Credit Agreement.
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Performance Bonds and Guarantees
In the normal course of business and for certain major projects, we may be required to obtain surety or performance bonding, to provide parent company guarantees, or to cause the issuance of letters of credit (or some combination thereof) in order to provide performance assurances to clients on behalf of one of our subsidiaries.
If our services under a guaranteed project would not be completed, or if it would be determined to have resulted in a material defect or other material deficiency, then we could be responsible for monetary damages or other legal remedies. As is typically required by any surety bond, we would be obligated to reimburse the issuer of any surety bond provided on behalf of a subsidiary for any cash payments made thereunder. The commitments under performance bonds generally end concurrently with the expiration of the related contractual obligation.
As of July 31, 2026, the estimated amount of our unsatisfied bonded performance obligations, covering all of our subsidiaries, was approximately $0.9 billion. In addition, as of July 31, 2026, the outstanding amount of bonds covering other risks, including warranty obligations and contract payment retentions related to completed activities, was $104.3 million.
When sufficient information about claims related to performance on projects would be available and monetary damages or other costs or losses would be determined to be probable, we would record such losses. As our subsidiaries are wholly-owned, any actual liability related to contract performance is ordinarily reflected in the financial statement account balances determined pursuant to the Company’s accounting for contracts with customers. Any amounts that we may be required to pay in excess of the estimated costs to complete contracts in progress as of July 31, 2026 are not estimable.
Solar Energy Project Investments
We make investments in limited liability companies that make equity investments in solar energy projects that are eligible to receive energy tax credits, for which we have received substantially all of the income tax benefits associated with those investments. As of July 31, 2026, we had no remaining cash investment commitments related to the solar tax credit entities in which we have invested. It is likely that we will evaluate opportunities to make other alternative energy project investments in the future.
Development Financing
We selectively participate in power plant project development and related financing activities. As is common in our industry, EPC contractors and third parties periodically form joint ventures, limited partnerships and limited liability companies for purposes of executing a project or program for a project owner. These special purpose entities are typically dissolved upon completion of the project or program.
We have agreed to support arrangements with independent project developers, primarily by providing development financing to special purpose entities formed to advance natural gas-fired power plant projects. Several of these arrangements have resulted in our successful construction of gas-fired power plants. In each case, we received project development fees, and our loans were repaid in full plus interest and fees. Not all such business development endeavors are successful, and we have recorded impairment losses as a result in the past. As of July 31, 2026, there were no development financing loans outstanding.
Deferred Tax Assets and Liabilities
We maintain a valuation allowance against certain deferred tax assets of our U.K. subsidiary, consisting primarily of net operating loss carryforwards. Our U.K. operations have generated taxable income in recent periods, and it is reasonably possible that we could release all or a portion of this valuation allowance within the next 12 months. A full or partial release would result in a material income tax benefit in the period of release and would reduce our effective income tax rate for that period. See Note 11 to the accompanying condensed consolidated financial statements.
Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”)
We believe that EBITDA is a meaningful presentation that enables us to assess and compare our operating performance on a consistent basis by removing from our operating results the impacts of our capital structure, the effects of the
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accounting methods used to compute depreciation and amortization and the effects of operating in different income tax jurisdictions. Further, we believe that EBITDA is widely used by investors and analysts as a measure of performance.
However, as EBITDA is not a measure of performance calculated in accordance with U.S. GAAP, we do not believe that this measure should be considered in isolation from, or as a substitute for, the results of our operations presented in accordance with U.S. GAAP that are included in our consolidated financial statements. In addition, our EBITDA does not necessarily represent funds available for discretionary use and is not necessarily a measure of our ability to fund our cash needs.
The following tables present EBITDA for the three and six months ended July 31, 2026 and 2025, respectively (amounts in thousands):
Net income, as reported
Amortization of intangible assets
EBITDA
67,608
36,225
122,011
66,524
Critical Accounting Policies
There have been no material changes in our critical accounting policies and estimates from those disclosed in our Annual Report filed with the SEC on March 26, 2026.
See Note 1 to the accompanying condensed consolidated financial statements for discussion on recently issued accounting pronouncements.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes in our exposure to market risk during the six months ended July 31, 2026.
For a broader discussion of the Company’s exposure to market risks, refer to the Company’s market risk disclosures set forth in Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” of the Annual Report.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of disclosure controls and procedures. Our management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) as of July 31, 2026. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and procedures as of July 31, 2026, our chief executive officer and chief financial officer concluded that, as of such date, our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed
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in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified by the SEC, and the material information related to the Company and its consolidated subsidiaries is made known to management, including the chief executive officer and chief financial officer, to allow timely decisions regarding required disclosure in the reports.
Changes in internal controls over financial reporting. There have been no significant changes in our internal control over financial reporting (as defined in Rules 13a-15 and 15d-15 under the Exchange Act) during the fiscal quarter ended July 31, 2026, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II
ITEM 1. LEGAL PROCEEDINGS
We have provided information about legal proceedings in which we are involved in Note 9 to the accompanying condensed consolidated financial statements. In addition, in the normal course of business, we may have pending claims and legal proceedings. Based on information available at this time, we do not believe that the resolution of any current claim or proceeding will have a material effect on our condensed consolidated financial statements.
ITEM 1A. RISK FACTORS
In addition to the other information set forth in this Quarterly Report on Form 10–Q, carefully consider the factors discussed in Part I, Item 1A Risk Factors in our Annual Report on Form 10–K, which could materially affect our business, financial condition, or future results.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Our board of directors has authorized management to repurchase shares of our common stock in the open market, through investment banking institutions, privately-negotiated transactions, or direct purchases pursuant to a share repurchase program (the “Share Repurchase Plan”). On April 8, 2026, the board of directors increased the total authorization under the Share Repurchase Plan by $50 million, bringing the aggregate authorized amount to $200 million. The timing and amount of any repurchases will depend on market and business conditions, applicable legal and credit requirements, and other corporate considerations. In accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, and pursuant to the Share Repurchase Plan, we have permitted, and may in the future permit, the repurchase of our common stock during trading blackout periods by an investment banking firm or other institution acting as our agent under predetermined parameters.
Information related to our share repurchases for the three months ended July 31, 2026 follows:
Approximate Dollar
Total Number of
Value of Shares That May Yet
Shares Purchased as Part
Be Purchased under the
Average Price per
of Publicly Announced
Plans or Programs
Period
Shares Repurchased
Share Paid
(Dollars in Thousands)
May 1 - 31, 2026
1,680
680.32
83,520
June 1 - 30, 2026
9,609
715.69
1,800
82,264
July 1 - 31, 2026
7,787
551.53
77,969
19,076
11,267
For the month ended June 30, 2026, we withheld 7,809 shares of our common stock at the average price per share of $719.84 for the exercise price and/or tax withholding in connection with stock option exercises and restricted stock unit settlements that occurred during the month.
On July 31, 2026, in connection with the acquisition of ValCor described in Note 14 to the accompanying condensed consolidated financial statements, the Company issued 877 shares of its common stock from treasury to the sole member of ValCor as partial consideration for the acquisition. The shares had an aggregate value of approximately $0.5 million as of the acquisition date.
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ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. MINE SAFETY DISCLOSURES
Not Applicable
ITEM 5. OTHER INFORMATION
During the quarter ended July 31, 2026, no director or officer of the Company (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements (in each case, as defined in Item 408(a) of Regulation S-K).
ITEM 6. EXHIBITS
Exhibit No.
Title
3.1
Certificate of Incorporation, as amended (incorporated by reference to Exhibit 3.1 to the Registrant’s Quarterly Report on Form 10-Q filed on September 4, 2025).
3.2
Bylaws (incorporated by reference to Exhibit 3.2 to the Registrant’s Annual Report on Form 10-K filed on April 15, 2009).
31.1
Certification of Chief Executive Officer, pursuant to Rule 13a-14(c) under the Securities Exchange Act of 1934.
31.2
Certification of Chief Financial Officer, pursuant to Rule 13a-14(c) under the Securities Exchange Act of 1934.
32.1
Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350. *
32.2
Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350. *
101.INS
XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH
Inline XBRL Taxonomy Extension Schema.
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase.
101.LAB
Inline XBRL Taxonomy Label Linkbase.
101.PRE
Inline XBRL Taxonomy Presentation Linkbase.
101.DEF
Inline XBRLTaxonomy Extension Definition Document.
104
Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
*The certification is being furnished and shall not be considered filed as part of this report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
ARGAN, INC.
September 2, 2026
By:
/s/ David H. Watson
David H. Watson
President and Chief Executive Officer
/s/ Joshua S. Baugher
Joshua S. Baugher
Senior Vice President, Chief Financial Officer and
Treasurer (Principal Financial Officer)
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