Argan, Inc. reported significant financial growth in its latest 10-Q filing for the three and six months ended July 31, 2024. The company achieved consolidated revenues of $227.0 million for the three months, marking a 60.6% increase from $141.3 million in the same period of 2023. For the six months, revenues reached $384.7 million, up 57.0% from $245.0 million year-over-year. This growth was primarily driven by the power industry services segment, which saw revenues rise to $173.8 million for the quarter, a 64.9% increase from $105.3 million in the prior year.

Gross profit for the three months ended July 31, 2024, was $31.1 million, reflecting a 31.0% increase from $23.7 million in the same period of 2023. However, the gross profit margin decreased to 13.7% from 16.8% year-over-year. Income from operations also improved, reaching $18.7 million for the quarter, a 41.1% increase from $13.2 million in 2023. Net income for the three months was $18.2 million, up 42.5% from $12.8 million, translating to a diluted net income per share of $1.31 compared to $0.94 in the previous year.

For the six-month period, net income surged to $26.1 million, a 75.3% increase from $14.9 million in 2023, with diluted earnings per share rising to $1.90 from $1.10. The company declared cash dividends of $0.30 per share for the quarter, up from $0.25 in the same period last year.

On the balance sheet, cash and cash equivalents increased to $232.7 million as of July 31, 2024, from $197.0 million at the end of January 2024. Total assets rose to $726.6 million, up from $598.2 million, while total current liabilities increased to $415.1 million from $302.3 million.

Strategically, Argan faced challenges with the Kilroot Project, which was terminated in May 2024 due to breaches by the project owner, resulting in an estimated loss of $12.8 million. Despite this setback, the company’s project backlog grew to $1.0 billion, with a focus on renewable energy projects comprising approximately 55% of this backlog.

In terms of financing, Argan executed a new credit agreement in May 2024, reducing its base lending commitment from $50.0 million to $35.0 million, with no borrowings outstanding under this agreement as of July 31, 2024. The company continues to pursue opportunities in both traditional and renewable energy sectors, positioning itself for future growth amidst evolving market conditions.