Argan Inc., a specialty construction firm serving the power-generation and industrial sectors, announced a 40% increase to its quarterly dividend, raising the payout from $0.50 to $0.70 per share. The new quarterly distribution translates to an annual rate of $2.80 per share and represents the company’s fourth straight year of dividend increases, following a 33% raise in September 2025. The payout is scheduled for October 30 to shareholders of record on October 22.
The dividend increase followed strong financial results in the company’s fiscal second quarter. Revenue climbed 61.5% year-over-year to $384.0 million, while net income rose 51.1% to $53.3 million, or $3.76 per diluted share. Gross margin expanded 70 basis points to 19.3%, and adjusted EBITDA surged 81.9% to $70.0 million. The company maintained a conservative payout ratio of 15.57% before the increase, leaving capacity for capital investments and potential further distribution growth.
Argan’s growth is primarily driven by rising demand for power infrastructure to support artificial intelligence data centers. The company completed several major projects during the quarter, including the 950-megawatt Trumbull Energy Center in Ohio and its final Midwest Solar and Battery project. The company maintains eight active power construction projects and a $2.8 billion backlog, with approximately 79% derived from natural-gas projects, 13% from renewables, and 8% from industrial work.
Beyond its core power construction business, Argan expanded through its Teledata subsidiary, acquiring Connecticut-based ValCor Communications on July 31 for approximately $8.3 million in cash and stock. ValCor provides network installation and maintenance services across New England with customers in defense, aerospace, and technology sectors.
The company also broadened its share-repurchase authorization from $150 million to $200 million, extending it through January 31, 2030. Analysts covering the stock maintain a consensus “Moderate Buy” rating with an average price target of $553.86, suggesting 41% upside from then-current levels. The stock has advanced 70% over the prior 52 weeks.
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