Analogy 1: Fluor for power plants

Analogy 2: Bechtel for energy infrastructure

• Engineering, Procurement, and Construction (EPC) Services: Argan provides full-service EPC solutions for the development of natural gas-fired, renewable energy, and other power generation facilities.
• Industrial Construction and Fabrication Services: The company offers specialized construction, fabrication, and maintenance services to clients in various industrial and manufacturing sectors.
• Turbine and Generator Field Services: Argan delivers installation, commissioning, maintenance, and outage support for turbines, compressors, and generators primarily within the power generation and industrial markets.

Argan, Inc. (symbol: AGX) primarily sells its services to other companies in the power industry and related sectors. Due to the project-based nature of their business and typical confidentiality agreements, Argan does not consistently disclose the names of its specific major customers in its public financial filings.

However, their customer base primarily consists of the following categories of companies:

• Independent Power Producers (IPPs): These companies develop, own, and operate facilities to generate electricity for sale to utilities or the wholesale market.
• Public Utilities: Large, often regulated, entities that generate, transmit, and distribute electricity to consumers.
• Renewable Energy Developers: Companies focused on the development and operation of renewable energy projects, such as solar, wind, and battery storage facilities.
• Industrial Customers: Large industrial facilities that require specialized power solutions, co-generation facilities, or other industrial construction and maintenance services.

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David H. Watson, President and Chief Executive Officer

Mr. Watson was appointed President and Chief Executive Officer of Argan in August 2022. Prior to this role, he served as Argan's Chief Financial Officer for almost seven years, beginning in January 2015. Before joining Argan, he held the position of Chief Financial Officer & Treasurer at The Gladstone Companies from January 2010 to January 2015. His background also includes roles as Director of Portfolio Accounting at MCG Capital and Associate Director at Guidehouse. He started his career as an Audit Senior at Deloitte Consulting.

Joshua S. Baugher, Senior Vice President, Chief Financial Officer and Treasurer

Mr. Baugher is the current Chief Financial Officer, having succeeded Richard H. Deily on September 15, 2024. Before this appointment, he was Vice President and Corporate Controller at Argan. From October 2018 to December 2022, he oversaw financial reporting and technical accounting at Charles River Associates, a publicly traded international consulting firm. Mr. Baugher began his career at CohnReznick, where he managed a diverse client portfolio for nine years. He is a Certified Public Accountant in Maryland.

Rainer H. Bosselmann, Director

Mr. Bosselmann founded Argan in 2003 and served as its Chairman and Chief Executive Officer until his retirement in August 2022. Under his leadership, he transformed the company from a $30 million entity into an international business with annual revenues and a market capitalization exceeding $500 million. He was instrumental in the acquisition of Gemma Power Systems in 2006, which significantly repositioned Argan. He continues to serve as a member of the Board of Directors.

Charles E. Collins IV, Chief Executive Officer, Gemma Power Systems

Mr. Collins was appointed CEO of Gemma Power Systems, a wholly-owned subsidiary of Argan, in November 2021, following his tenure as Co-President. He has 21 years of experience with Gemma Power Systems and has led the company through challenging periods.

Michael J. Hundley, Senior Vice President of Legal and Corporate Secretary

Mr. Hundley serves as the Senior Vice President of Legal and Corporate Secretary for Argan, Inc.

The accelerating global energy transition away from fossil fuels, including natural gas, towards renewable energy sources. A significant portion of Argan's historical and ongoing project work involves the engineering, procurement, and construction (EPC) of natural gas-fired power plants. As governments, utilities, and investors increasingly prioritize and subsidize purely renewable energy projects (solar, wind, battery storage) and phase out fossil fuel-based generation, the market for new large-scale natural gas power plant construction could diminish significantly and rapidly. While Argan does participate in renewable energy projects, a substantial and abrupt contraction in their core natural gas plant business, without a proportional and competitively strong pivot into an expanded renewable energy EPC market, poses a clear emerging threat to their revenue streams and long-term business model.

Power Industry Services

Industrial Fabrication and Field Services

Telecommunications Infrastructure Services

Argan (AGX) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:

1. Record Project Backlog: Argan's substantial and growing project backlog provides strong visibility for future revenue. As of July 31, 2025, the company reported a record project backlog of $2.0 billion, a significant increase from $757 million in fiscal year 2024. This backlog includes major projects across various sectors and geographies, ensuring a pipeline of work for its Power Industry Services segment.
2. Increasing Demand for Reliable Energy Resources (Electrification of Everything): The company is strategically positioned to capitalize on the "Electrification of Everything" trend. This trend is driven by surging electricity demand from sources such as artificial intelligence (AI) and data centers, electric vehicles (EVs), and the ongoing development of renewable energy infrastructure. Management emphasizes the urgent need for reliable energy resources to strengthen the power grid, with electricity consumption projected to grow 4% annually through 2027.
3. Growth in Natural Gas and Renewable Power Projects: Argan anticipates continued growth from both natural gas-fired and renewable energy power projects. The company expects to maintain its power generation percentage from natural gas within the 30%-40% range to meet energy demands and projects an increase in renewable energy initiatives. Significant natural gas plants are slated for construction in 2024-2025, and its backlog includes multiple renewable energy projects.
4. Expansion in Telecommunications and Industrial Construction Sectors: Beyond its core power services, Argan expects growth in its telecommunications and industrial construction sectors. This expansion is particularly noted in high-growth regions like the southeast United States, with an emphasis on projects such as water treatment and data center infrastructure.
5. Strategic Acquisitions, Partnerships, and Ecosystem-driven Business Design: Argan is actively pursuing an "ecosystem-driven business design" that includes strategic mergers and acquisitions (M&A) to enhance its capabilities and expand its geographical footprint. The company also forms strategic alliances with technology providers and advisory firms to accelerate project delivery and mitigate risks, fostering cross-sector growth and strengthening its market position.

Share Repurchases

• In April 2025, Argan's Board of Directors approved an increase to its existing share repurchase program, raising the authorization from $125 million to $150 million.
• In January 2022, the company's share repurchase program was increased from $25 million to $50 million. Approximately $18 million had been repurchased under this authorization at that time.

Share Issuance

• During Fiscal 2021 (year ended January 31, 2021), Argan received $1.6 million in cash proceeds related to the exercise of stock options.

Outbound Investments

• In Fiscal 2021 (year ended January 31, 2021), Argan used $1.3 million for an investment in a solar energy project.

Capital Expenditures

• Capital expenditures for Fiscal 2021 (year ended January 31, 2021) were $1.7 million.