Argan, Inc. increased its regular quarterly cash dividend to $0.50 per share, a 33% jump from the $0.375 dividend that was in place before the September 2025 adjustment. The new dividend will be paid on January 30, 2026, to shareholders of record as of January 22, 2026, bringing the annual payout to $2.00 per share.
The dividend hike follows a strong earnings season in which Argan reported diluted earnings per share of $2.17 for fiscal Q3 2026, beating the consensus estimate of $2.02 by $0.15 or 7.5%. The beat was driven by disciplined cost management and a favorable mix of high‑margin power‑plant construction projects that offset a modest decline in revenue.
Revenue for the quarter fell 2.3% year‑over‑year to $251.15 million, missing the consensus estimate of $254.53 million by $3.38 million. The shortfall was largely attributable to a 4% decline in revenue from the company’s industrial construction services segment, while the power‑industry services segment grew 3% as demand for new natural‑gas and renewable‑energy plants remained strong.
Gross profit margin expanded to 18.7% from 17.2% in the same period last year, reflecting higher pricing power in the power‑industry services segment and improved operational leverage as the backlog of $3.0 billion continues to grow. The record backlog, 94% of which is tied to power projects, signals a healthy pipeline that supports the company’s ability to sustain dividend growth.
Management emphasized that the dividend increase is part of Argan’s long‑term capital allocation strategy. President and CEO David Watson said, “Returning value to shareholders remains a core tenet of our strategy, and the robust pipeline of new opportunities underpins our confidence in maintaining a strong cash‑flow position.” He also noted that the company remains focused on executing projects efficiently while monitoring headwinds such as rising material costs.
Analysts noted that while the company’s earnings beat expectations, the revenue miss has heightened investor focus on top‑line growth. The market reaction to the earnings release was tempered by concerns that the company may face slower revenue acceleration in the near term, even as margins and backlog continue to improve.
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